Later Life Lending – Write or Refer…but Don’t Ignore

When it comes to later life lending, most advisers fall into one of two camps; those who build the capability to advise, and those who refer to a specialist.

Both can be completely valid commercial strategies, but there is one position that can no longer be defended – ignoring later life lending altogether.

For many clients, the main residence is the largest yet least-used asset on the balance sheet. As Consumer Duty increasingly expects firms to consider all viable routes for good client outcomes, products like equity release can no longer sit outside the planning conversation. And, crucially, the numbers show that doing nothing is now the least economically sensible option.

The Cost of Building a Capability and Where A Referral Partner Comes In

If becoming qualified and setting up an internal later life lending capability sounds like a bigger financial commitment than you can handle, then there are other options. The alternative is a referral service such as through Key Partnerships, which had an average referral fee paid of £1,646 in 2024.

Additionally, following qualification, not every firm will immediately want to write advice in-house, and that’s perfectly reasonable. Working with the right referral partner will mean that you can bring revenue into your business without the need to be qualified.

The referral route generates lower per-case income than writing internally, but it remains highly profitable, and zero operational burden means advisers can focus on core advice while still meeting Consumer Duty expectations.

Many firms adopt a hybrid pathway: they start with referral, build confidence and then transition to in-house when volumes justify the move.

Ignoring Equity Release Is the Only Strategy That Doesn’t Work

Consumer Duty has raised the bar. Choosing not to discuss, consider or explore residential property in planning carries commercial and regulatory risks:

• Potential foreseeable harm through omission
• Lost revenue and valuation upside
• Missed intergenerational engagement
• Poorer client outcomes when financial liquidity is needed today

Clients increasingly expect their adviser to help them use all assets to improve financial wellbeing, not just pensions and investments.

A Simpler, Safer Way to Bring Later Life Lending Into Your Proposition

By referring your clients to us, you can expand your service without taking on the advice process yourself. Our team of specialists provides expert case handling, compliance oversight, and personalised support, ensuring your clients receive the right outcomes while you strengthen your business with a trusted referral partnership.

Whether you’re exploring later life lending for the first time or looking to enhance your existing approach, partnering with us gives you:

• Confidence that every client receives fully compliant, specialist advice
• A simple, streamlined referral process that protects your relationship
• Additional revenue without the time, training or risk of advising yourself
• Support from a dedicated team who understand both your clients’ needs and your firm’s obligations

If you’re ready to offer more, serve better, and meet rising client demand, without adding operational strain, Key Partnerships is ready to help.

The Bottom Line

Whether you write equity release cases yourself or refer them to a trusted specialist, the choice to engage is now essential. The economics are strong, the strategic upside is significant, and the client need is only growing.

Avoiding these products won’t protect your firm – it holds it back.

It’s time to decide:

Write or refer… but don’t ignore.