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Equity release referral clients take out extra £10,000 in property wealth

Poll shows introducers are confident in the sector’s future

Customers using equity release referral services are taking out an average of £10,000 more in property wealth than customers across the market as a whole, data from Key Partnerships shows.

The average released by referral customers is £85,099 and goes as high as nearly £140,000 for customers referred by wealth managers.

This compares with £75,032 for the market as a whole, according to the data from more than 5,000 firms and research on more than 200 individual introducers. 

Introducers are confident in the future of the sector with 68% forecasting growth of 10% or more over the next three to five years and 18% banking on expansion of over 30%.

The average introducer expects 11% of their total income to come from equity release within three to five years.

The report shows mortgage brokers make up the biggest group of introducers at 42% followed by IFAs on 40% and wealth managers on 6%.

However, the research found just one in three (32%) 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. 

Jason Ruse, head of Key Partnerships, said 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. 

”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,” he added.

Key Partnerships, which has seen growth of 285% in the number of introducers it works with over the past two years, is overhauling its online portal to provide additional functionality and new support for introducers as part of a brand refresh.