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285% increase in introducers over the last two years
Mortgage brokers, IFAs, Wealth Managers and Estate Agents dominate the sector
Introducer clients release more than typical equity release customers
45% prefer to refer as they want specialist support in this sector
68% believe the sector will grow over the next five years
04 July 2019: “Introducing the Introducers” – a new report from Key Partnerships (one of the UK’s largest equity release referral businesses) – takes an in-depth look at the growing numbers of mortgage brokers, IFAs, wealth managers and estate agents who are setting up referral relationships to provide equity release to their customers. Download a copy of the report here.
It was commissioned to celebrate the brand refresh that Key Partnerships has unveiled today (INCLUDE LINK TO WEBSITE) which sees the firm completely overhaul its online portal to not only provide additional functionality but a new marketing hub designed to support introducers wishing to build their businesses.
INTRODUCING THE INTRODUCERS
Containing analysis of over 5,000 firms and in-depth research on more than 200 individual introducers, the report paints a picture of a sector which has seen the number of companies with referral agreements grow by 285% between FY 2016 and FY 2018. The most common types of introducers are mortgage brokers (42%), IFAs (40%), wealth managers (6%) and estate agents (3%).
It also highlights that introducers clients are wealthier than average – releasing £85,099 (YTD 2019) vs. £75,032 (Q1 2019). In 2019, Wealth managers’ clients (£139,966) released the most followed by IFAs (£89,677), mortgage brokers (£77,585) and estate agents (£76,102) – [see table below for further details].
IMPETUS TO ENGAGE:
When asked why they prefer to refer rather than provide advice on equity release themselves, 45% of introducers said it was a specialist market with either head office (26%) or they themselves (21%) feeling more comfortable doing this. Customer demand is also a strong driver with 19% saying their interest was prompted by a client enquiry.
Now that they are involved in the market and have a referral relationship in place, 41% say they believe the main benefits are being able to help clients who they previously would have had to turn away and 39% like that it allows them to provide a wider range of services to clients.
CONFIDENT ABOUT MARKET GROWTH:
Given the current socio-economic factors, introducers are confident in the future growth of the sector with 68% forecasting growth of 10% or more over the next three to five years and 18% banking on growth of over 30%. The average introducer expects 11% of their total income to come from equity release within three to five years.
But the research found just one in three (32%) of introducers routinely mention equity release to clients and two out of five (42%) only start the discussion if they feel they have identified a client who might benefit. While introducers naturally understand their clients and their needs, there is some concern that their understanding of equity release and its uses may need to be enhanced to ensure they speak to all clients who might potentially benefit.
Jason Ruse, Head of Key Partnerships, said: “With the later life lending market growing, organisations are increasingly looking to how they can support clients with these choices or – indeed – being asked by clients for support. Over the last two years, we have seen a 285% increase in the number of introducers as mortgage brokers, IFAs and wealth managers look to meet this need.
“To better serve this market, Key Partnerships has undertaken a brand refresh and completely overhauled its online portal to not only provide additional functionally but a new marketing hub designed to support introducers wishing to build their businesses. The confidence of introducers in the future of the equity release market is evident which is good news for clients as well as introducer businesses so we wanted to position ourselves to support them.
“Encouraging trusted advisers to speak to their clients about the potential uses of property wealth helps people to think more holistically about their assets and helps specialists to support clients. Indeed, 41% of introducers felt that adding this service to their range helped them support clients they would otherwise not have been able to help.
”However, more still needs to be done to ensure that introducers are more comfortable mentioning housing wealth and equity release when they speak to their clients. We hope that the new enhanced support provided by Key Partnerships will help to make this easier for introducers.”
The table below shows how the value of property wealth released varies between the equity release market as a whole and the introducer market.
AVERAGE AMOUNT RELEASES
Key Partnerships research found good customer service was rated the top attribute for a successful referral relationship narrowly ahead of product expertise. Commission rates were rated ninth out of a list of nine attributes.
Notes to Editors
The report and the data within it is based on Key Partnerships research with more than 200 introducers in May/June 2019 and analysis of more than 5,000 introducers records unless otherwise highlighted.
For more information, please contact: Lee Blackwell Director of Public Relations and Public Affairs
Key Retirement Group
Part of the Key Retirement Group, Key Partnerships provides an equity release referral service through the UK’s largest independent equity release broker – Key.
As the consumer appetite for equity release continues to grow, Key Partnerships offers a way for its partners which include mortgage brokers, wealth managers, estate agents and solicitors to safely recommend clients to expert advisers.
Key Partnerships focuses on tailoring its service to meet the needs of its partners and their clients – helping to ensure that if a business doesn’t have the tools, permissions or time, they can still service their clients.