Royal London has bought later life lending and product specialists, Responsible Life and Responsible Lending, subject to regulatory approval.
This acquisition builds on Royal London’s existing 40 per cent stake in the businesses.
It will enable Royal London to support Responsible Group to continue delivering “innovative” later life solutions and scale the provision of later life lending in what, it believes, will be a growing market.
Royal London group CEO, Barry O’Dwyer, said: “This transaction strengthens our support for advisers and customers as they look for solutions in funding later life needs.”
O’Dwyer added that Royal London believes this market has a lot of potential as it offers customers additional choices at retirement.
This was said to be especially true for those who have property wealth but inefficient pension savings to support their desired standard of living.
O’Dwyer added: “Later life lending is complex by nature and requires specialist advice.
“Royal London is keen to play a role in ensuring high quality advice is an accessible option for those who would benefit from accessing the equity in their home.”
Responsible Group CEO, Carlton Hood said: “I am delighted that the Responsible companies are becoming part of the Royal London Group, and will benefit from the stability of being part of the UK’s largest life, pensions and investment mutual.”
Hood added that the group will work with colleagues at Royal London to bring the consideration of pension wealth and property wealth together for advisers and clients.
He also said that working with Royal London would ensure the advisers it supports, and the customers Royal London serve, are able to access the “best range of later life lending solutions” for their retirement needs.
Founded in 2010, Responsible Group is a later life mortgage broker and lender.
tom.dunstan@ft.com
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