According to research from Key Later Life Finance, which surveyed around 200 financial advisers including wealth advisers, general advisers and over-50s specialists, an additional 46% occasionally turn away clients as they doubt their ability to offer later life lending service.
Around 16% said they never or rarely turn away clients.
The research highlights the importance for adviser firms to establish trusted referral relationships with later life lending specialists if they do not feel comfortable writing the business themselves.
Key noted that adviser firms said the growing complexity of later life lending products made advice more complex, also underlining the need for reviewing referral relationships and utilising tools and research available.
Approximately 86% said they refer clients to later life lending or equity release specialists at least once per month.
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Nearly half said they are very confident that the client receives the highest quality advice when they are referred to a specialist, but a third said they are only quite confident and 15% said they are only a little confident in their referral relationships.
Will Hale, CEO of Key Advice, said: “Help is on hand for advisers who want to work directly in the later life lending market through the sourcing and research tools available and with the professional development resources and support provided by lenders and through networks and mortgage clubs.
“Putting in place referral arrangements with trusted specialists is the best option for advisers who do not want to expand their proposition but still be able to ensure that all options are offered to clients. They need, however, to be very confident that the referral relationship will produce the best outcome for clients.
“Setting up referral arrangements can be equally important for equity release specialists who perhaps do not want to cover mainstream mortgage options or have customers who may benefit from expert pension, tax or long-term care advice. Referral relationships can ensure firms fulfil their obligations under Consumer Duty while also improving their service proposition and creating a new income stream.”
