Equity release introducer clients more likely to focus on inheritance

Clients of equity release introducers are more likely to focus on inheritance issues, according to new research from Key Partnerships.

46% of customer referred by introducers are using property wealth to gift an early inheritance to family, while around one in seven (15%) see equity release as a way of managing potential IHT liabilities.

The report highlights how the introducer market differs from the wider market and underlines the opportunities for potential introducers expanding their services.

Referral customers release more property wealth on average than the wider market at £133,048 compared to £114,354, with some introducers such as accountants recording average amounts of £183,334.

Not all introducer clients are focused on inheritance issues – nearly one in three (31%) introducers say the cost-of-living crisis means clients are trying to reduce expenses while 26% are cautious about investment decision and one in five (20%) are worried about retirement finances.

56% of introducer clients are paying off mortgages – more than double the rate for the wider market at 24% - but just 19% use property wealth to clear unsecured debt compared with 31% in the wider market.

Market expertise and customer service are the top two attributes’ introducers want from referral partners followed by an ability to tailor services to their individual needs.

Jason Ruse, business development director at Key Partnerships, said: “The differences in how customers in the introducer market use equity release to the wider market reflect the development of the later life lending market.

“The increased focus on inheritance issues and the interest in using equity release for IHT planning underline the breadth of the equity release market and the potential for introducers to expand the services they offer clients through a referral partnership.

“While there are clear differences, some things remain the same and introducers will have clients feeling the pinch from the cost-of-living crisis emphasising the role of equity release in meeting a wide range of customer needs.”