Equity release sales experience 10 per cent annual increase
Equity release advances rose to £199.1m in Q1 2012, an increase of 10 per cent against Q1 2011, according to Safe Home Income Plan (SHIP) members.
The amount of equity release plans also improved, experiencing an increase of 6 per cent to 4,057 from 3,838 year-on-year.
Drawdown mortgages, which allow customers to access their equity in stages much like a monthly income, remain the most popular option accounting for 67 per cent in Q1 2012 while lump sum mortgages represented 32 per cent and home reversions 2 per cent.
90 per cent of the equity release plans sold in the first three months of the year were via intermediaries at a value of £179.5m, once again highlighting the opportunity this market is now offering introducers.
Richard Espley is the Head of Equity Release for Goldsmith Williams:
“This steady increase is very encouraging for the equity release market and demonstrates the growing interest towards such a product.
“Equity release is offering solutions for both customers and intermediaries hit hard by the increasing cost of living and stagnant property market. This increase is something we expect to continue especially that the financial landscape is looking bleak as evidence by the news earlier this week about the country’s collapse back into recession.”
Content correct at time of publication