Royal London has acquired a 30 per cent stake in Responsible Life and Responsible Lending (Responsible Group), predicting that later life lending will become a "core part of financial planning".

The deal, which is subject to regulatory approval, will allow Royal London to participate in the growing later life lending market, whilst also supporting Responsible Group to continue delivering later life solutions for all their partners.

It builds on the existing partnership between the two companies, which has been in place since the launch of a jointly branded later life lending service in September 2020.

Both companies have argued that the later life lending market has “significant growth potential”, highlighting it is a particularly important option for those who have equity in their property but not enough pension savings to support their desired standard of living.

Indeed, Royal London group CEO, Barry O’Dwyer, suggested that later life lending will become a “core part of financial planning”, stating that the acquisition will allow Royal London to broaden the groups reach while ensuring existing clients remain supported.

He said: “Since equity release became a regulated market, accessible through specialist advice, customers can now access good quality products.

“Financial advisers have a great opportunity to access support from Responsible Group’s specialist advisers, which will benefit both them and their clients.

“We are impressed by Responsible Group’s track record and excited by its potential for future growth. We share their passion for improving the lives of customers in retirement and look forward to supporting their ambitious plans.”

This was echoed by Responsible Group executive chairman, Steve Wilkie, who described Royal London as a partner that “truly shares” the group's passion to improve the lives of customers in retirement by providing “straightforward, affordable access to the equity in their homes”.

He continued: “The investment from Royal London is another exciting chapter in our company’s growth story as we continue to be at the vanguard of the development of the later life lending sector, improving products, and breaking down barriers for customers.

“We share common values and a commitment to working with our industry colleagues and the financial adviser community to offer broader participation in this sector.

“The further commitment of a brand like Royal London to the later life lending market is an important endorsement of the growing role that equity release and retirement mortgages play in responsible financial planning.

“We look forward to working together, and with all our distribution partners, to help more customers enjoy later life lending solutions in the years ahead.”

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