Equity release adviser Key Retirement has signed a new deal with live-in care provider Elder to give advisers more support on helping retired clients using their home to afford residential care.
Key Retirement says that through lifetime mortgages with Elder, advisers will be able to offer new options for older clients wanting to remain in their home.
Key Retirement’s advisers will be able to offer a live-in care funding plan to customers as a result of the deal. The firm cites estimates that around 50,000 pensioners sold their homes last year to pay for care, but only 3 per cent say they would want to move into a care home.
Key Retirement chief product officer Dean Mirfin says: “For far too long live-in care has been for the wealthy even though millions of pensioners with equity tied up in their homes could fund live-in care through equity release.
“We are pleased to be working with Elder to provide expert advice to enable older homeowners to receive valuable live-in-care at home.”
While Key Retirement rolled back its pensions advice arm at the end of 2015, it is currently on an adviser recruitment drive to tap the equity release market, which it expects to reach £2.1bn by 2021, double its value now.
The FCA was recently considering introducing a specialist equity release qualification to make it easier for investment and pensions advisers to make recommendations on equity release without going through full mortgage advice qualifications, but decided against the plans on a lack of demand.