UK life and pensions firm Royal London has bought a 30% stake in later life lending and product specialists Responsible Life and Responsible Lending (Responsible Group).
This deal enables Royal London to participate in the market and support the Responsible Group to continue delivering later life solutions.
It also strengthens the existing partnership between the two companies, which started in September 2020 with the launch of a jointly branded later life lending service.
Royal London said: “The later life lending market has significant growth potential as it offers customers with equity in their homes additional choices at retirement, be it to supplement their income, gift capital to family, or invest in improving their homes or achieving lifetime goals.”
‘Core part of financial planning’
Barry O’Dwyer, group chief executive of Royal London, said: “Since equity release became a regulated market, accessible through specialist advice, customers can now access good quality products. We believe that later life lending will become a core part of financial planning.
“Financial advisers have a great opportunity to access support from Responsible Group’s specialist advisers, which will benefit both them and their clients. We are impressed by Responsible Group’s track record and excited by its potential for future growth.”
Steve Wilkie, executive chairman of Responsible Group, added: “The investment from Royal London is another exciting chapter in our company’s growth story as we continue to be at the vanguard of the development of the later life lending sector, improving products, and breaking down barriers for customers.
“We share common values and a commitment to working with our industry colleagues and the financial adviser community to offer broader participation in this sector. We look forward to working together, and with all our distribution partners, to help more customers enjoy later life lending solutions in the years ahead.”
