Life, pensions and investments provider Royal London has acquired a 30% stake in later life lending and product provider Responsible Group.

Royal London said that referring clients to a later life lending specialist, “can be a sensible choice for advisers who wish to make later life lending an important part of holistic Financial Planning.”

It believes that the later life lending market has significant growth potential as it offers customers with equity in their homes additional choices at retirement to supplement their income, gift capital to family, invest in improving their homes or achieving lifetime goals.

The Responsible Group comprises later life mortgage broker Responsible Life and lifetime mortgage provider Responsible Lending.

The acquisition strengthens the existing partnership between the two companies which began in September with the launch of a jointly-branded later life lending service. 

The deal is subject to regulatory approval.

Barry O’Dwyer, group CEO of Royal London, said, “Since equity release became a regulated market, accessible through specialist advice, customers can now access good quality products. We believe that later life lending will become a core part of Financial Planning.

"Our relationship with Responsible Group will allow us to broaden their reach while ensuring existing clients remain supported. Financial advisers have a great opportunity to access support from Responsible Group’s specialist advisers, which will benefit both them and their clients.”