Age Partnership is launching a specialist equity release lending arm in the second half of the year.
The retirement advice firm says it has applied to the FSA for lending permissions and is currently in discussions with an unspecified funder.
Age Partnership technical manager Simon Chalk says: “We will be moving into lending and we are looking to launch later this year with a product which we intend to make available to the wider intermediary community.”
Age Partnership’s entry into the equity release market will take the number of providers in the UK market to 13 – the highest level in two years.
John Charcol senior technical director Ray Boulger says: “To get specific confirmation of a new lender in the equity release market is particularly helpful because there are so few lenders already.
“We have seen some interesting innovation recently from lenders which ups the bar and means the introduction of any new lender may signal new criteria, providing additional options for borrowers. Existing lenders may also be motivated to innovate further.”