The agreement will enable Paradigm member firms who do not advise on equity release to refer clients to Hub Financial Services.
Advisers will also be able to attend client appointments if they wish to and will be given updates on the progress of a case. There will be an introducer fee of 1.75 per cent of the amount released on each completed case, with a minimum of £750.
Richard Howes, director of mortgages at Paradigm Mortgage Services, said: “Over the past few years we have witnessed an increase in need and demand from older homeowners wishing to access the equity stored up in property for a range of uses.
“Mortgage advisers are seeing more clients who might fit the later life lending bill, and this new referral arrangement has been set up to allow Paradigm member firms more choice when introducing their clients to specialists in the equity release field, in order to explore whether such options are suitable and relevant.”
Simon Gray, managing director at Hub Financial Services, added: “We are delighted that Paradigm Mortgage Services has chosen us as an equity release referral partner.
“Those members can be confident their clients will receive good advice, that steps through a wide range of considerations before providing a personalised recommendation bespoke to the client’s needs and individual risks.”