Key Later Life Finance - Advisers Are Turning Away Later Life Lending Enquiries, Study Finds

16 April 2025

• Two out of five say they regularly reject clients because they are not confident about providing services , Key Later Life Finance research shows
• Key is urging firms to investigate referral relationships if they are not confident about advising in later life lending market

17 April 2025: Nearly two out of five advisers are regularly turning away potential new clients enquiring about later life lending options because they lack confidence in providing a suitable service, new research* from Key Later Life Finance, the UK’s leading equity release adviser, shows.

The study with over-50s specialists, wealth advisers and general advisers found a further 46% occasionally turn away clients because they doubt their ability to offer a later life lending service. Just one in six (16%) say they never or rarely turn away clients.

The study underlines the need for adviser firms to set up trusted referral relationships with specialists in later life lending, Key believes, if they do not want to participate directly in the market themselves.

It says the growing complexity of later life lending products is making advice more complex for advisers and underlines the need for reviewing referral relationships and making use of the wide range of tools and research available.

There is evidence from the research that firms are doing this to a limited extent– around 86% of firms questioned say they refer clients to later life lending or equity release specialists at least once a month.

Around half (49%) say they are very confident that their clients receive the highest quality advice when they are referred to a specialist. However, a third (33%) say they are only quite confident and 15% admit to only being a little confident in their referral relationships.

Will Hale, CEO Key Advice, said:

“Help is on hand for advisers who want to work directly in the later life lending market through the sourcing and research tools available and with the professional development resources and support provided by lenders and through networks and mortgage clubs.

“Putting in place referral arrangements with trusted specialists is the best option for advisers who do not want to expand their proposition but still be able to ensure that all options are offered to clients. They need, however, to be very confident that the referral relationship will produce the best outcome for clients.

“Setting up referral arrangements can be equally important for equity release specialists who perhaps do not want to cover mainstream mortgage options or have customers who may benefit from expert pension, tax or long-term care advice. Referral relationships can ensure firms fulfil their obligations under Consumer Duty while also improving their service proposition and creating a new income stream.”