Royal London has announced plans to acquire the later life lending and product specialist, Responsible Life and Responsible Lending (the Responsible Group), subject to regulatory approval.

The acquisition builds on Royal London’s existing 40% stake in the businesses and is expected to enable Royal London to help the Responsible Group scale the provision of later life lending in what it believes will be a growing market.

Commenting on the announcement, Royal London group chief executive officer, Barry O’Dwyer, said: “This transaction strengthens our support for advisers and customers as they look for solutions in funding later life needs.

"We believe this market has a lot of potential as it offers customers additional choices at retirement, especially those who have property wealth but insufficient pension savings to support their desired standard of living.

“Later life lending is complex by nature and requires specialist advice. Royal London is keen to play a role in ensuring high quality advice is an accessible option for those who would benefit from accessing the equity in their home.”

Responsible Group chief executive officer, Carlton Hood, added: “I am delighted that the Responsible companies are becoming part of the Royal London Group, and will benefit from the stability of being part of the UK’s largest life, pensions and investment mutual.

“We will work with colleagues at Royal London to bring the consideration of pension wealth and property wealth together for advisers and clients, and to ensure the advisers we support, and the customers they serve, are able to access the best range of later life lending solutions for their retirement needs.”

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