The pensions and investment mutual said the deal, which will see it acquire nearly a third of Responsible Life and Responsible Lending, was subject to regulatory approval.

It comes just months after Royal London teamed up with Responsible Life to launch a later life lending service.

The acquisition would enable Royal London to participate in an important, growing market and it would also enable the mutual to support Responsible Group to deliver innovative later life solutions for all their partners.

It will also strengthen the partnership between the two companies which commenced in September 2020 when they launched the jointly-branded later life lending service.

Barry O’Dwyer, group CEO of Royal London said: “Since equity release became a regulated market, accessible through specialist advice, customers can now access good quality products. We believe that later life lending will become a core part of financial planning.

“Our relationship with Responsible Group will allow us to broaden their reach while ensuring existing clients remain supported. Financial advisers have a great opportunity to access support from Responsible Group’s specialist advisers, which will benefit both them and their clients.

“We are impressed by Responsible Group’s track record and excited by its potential for future growth. We share their passion for improving the lives of customers in retirement and look forward to supporting their ambitious plans.”

Steve Wilkie, executive chairman of Responsible Group said: “We are delighted to find in Royal London a partner that truly shares our passion to improve the lives of customers in retirement by giving them straightforward, affordable access to the equity in their homes.

The investment from Royal London is another exciting chapter in our company’s growth story as we continue to be at the vanguard of the development of the later life lending sector, improving products, and breaking down barriers for customers.

“We share common values and a commitment to working with our industry colleagues and the financial adviser community to offer broader participation in this sector.

The further commitment of a brand like Royal London to the later life lending market is an important endorsement of the growing role that equity release and retirement mortgages play in responsible financial planning.

“We look forward to working together, and with all our distribution partners, to help more customers enjoy later life lending solutions in the years ahead.”