Capital One has entered the equity-release sector.
The credit card and secured loan company has signed a deal with In Retirement Services which will see it pass cases on to the equity-release specialist.
It will not aggressively promote the service during the initial stages of the deal but that could change in the future. Instead, Capital One will rely on the steady stream of equity-release enquiries it gets from existing customers to generate business.
Capital One and IRS will hold talks over the coming weeks to formulate their marketing strategy.
Commentators in the market have been calling for new distribution channels to help generate business.
Initially, many were hoping that the major banks would join the market to give consumers and advisers more confidence to enter the sector but there have also been calls for referral partnerships, such as the Capital One deal, to help expand the industry.
In August, Money Marketing revealed that some providers were looking at credit card companies as well as utility firms and even car dealerships to sell products.
IRS sales director Dave Wilson says: “As an advice-based provider, we understand that referrals come from a wide variety of services and we want a multi-channel distribution. Capital One was getting enquiries but had nowhere to place them.”