Direct answer
Equity release referrals for IFAs: how to refer a later-life client
Equity release, usually a lifetime mortgage, is a regulated mortgage that needs advice from a firm with the right permissions and an adviser qualified in equity release. An IFA or broker who doesn’t advise on it can refer the client to a specialist firm that does.
When you refer, pass on accurate facts about the home, the client and their goals, ask whether family should be involved, and disclose any fee or commission before the introduction. Plans from Equity Release Council members carry protections including a no negative equity guarantee.12
Key points
- Most equity release is a lifetime mortgage: the client keeps owning the home.
- Equity Release Council standards include a no negative equity guarantee and the right to live in the home for life.
- It reduces the estate and can affect means-tested benefits, so alternatives must be considered.
- Disclose your commission before you introduce the client.
- A specialist should only advise on what you refer.
01
What a lifetime mortgage is
A lifetime mortgage lets a homeowner, typically aged 55 or over, borrow against their home while continuing to own it. Interest is usually added to the loan rather than paid monthly, and the loan is repaid, normally from the sale of the home, when the last borrower dies or moves into long-term care.
Because interest compounds, the amount owed grows over time. That reduces what the family inherits and can affect entitlement to means-tested benefits.
02
The Equity Release Council standards
Lifetime mortgages from Equity Release Council members must meet its product standards. The Council says only products that meet its standards provide these protections.1
- Interest fixed, or variable with a cap fixed for the life of the loan
- The right to live in the home for life, or until moving permanently into care
- The option to move to a suitable property and take the lifetime mortgage with them, subject to criteria
- A no negative equity guarantee: the borrower or estate never owes more than the home is worth, after reasonable sale costs
- The ability to make repayments without charges, subject to the provider’s criteria
- Early repayment charges waived on a move into long-term care, where the terms have been met
03
Why most advisers refer it
Equity release advice has to cover the effect on the estate, benefits and tax, and the alternatives, including downsizing, a retirement interest-only mortgage, other borrowing, family help or doing nothing. It needs the right permissions and an adviser qualified in equity release. Advisers without both refer the client to a specialist firm, which then gives the advice under its own authorisation.
04
How to refer well
If you introduce a client without advising, article 33A of the Regulated Activities Order requires you to disclose any fee or commission you will receive, and any group link with the firm, before the introduction, and not to take money from the client other than on your own account.2
- The ages of everyone who owns the home
- Property value, type and tenure, and any mortgage still on it
- How much the client wants and what it is for
- Health and lifestyle details the client is happy to share, which can improve terms
- Means-tested benefits the client receives
- Whether the client wants family involved in the conversation
05
Referring equity release to Charles Frank
A Charles Frank equity release specialist advises the client on the effect on their estate and benefits and on the alternatives. We only advise on what you refer, and we never cross-sell to your client. You follow the case in your portal through to completion and commission paid.
Common questions
Questions answered
Can an IFA refer a client for equity release?
Yes. An IFA who doesn’t advise on equity release can refer the client to a specialist firm. If you only introduce, disclose any fee or commission and any group link with the firm before the introduction.
What protections do Equity Release Council plans offer?
Council standards include fixed or capped interest, the right to live in the home for life, the option to move, a no negative equity guarantee and the ability to make repayments without charges, subject to criteria.
Does equity release affect inheritance?
Yes. The amount owed grows as interest is added, which reduces the value of the estate. It can also affect entitlement to means-tested benefits.
Will the specialist advise my client on other products?
At Charles Frank, no. We only advise on the product area you refer, and the client relationship stays yours.
Evidence
Sources and review
Material factual claims were checked against the primary and public-interest sources below. Product criteria and the wider market can change after the review date.
- 1Our Standards
Equity Release Council. The Council’s lifetime mortgage product standards.
- 2The Financial Services and Markets Act 2000 (Regulated Activities) Order 2001, article 33A
legislation.gov.uk. Disclosure conditions for introducing a client without arranging permission.
Published 27 October 2026. Last reviewed 27 October 2026.