View more on these topics

Equity release advances up 12% in Q3


New equity release advances grew 12 per cent between the second and third quarters of 2011, according to equity release trade body Safe Home Income Plans.

SHIP members advanced £184.9m in the second quarter of the year, increasing to £206.2m in the third quarter.

The number of equity release customers grew by over 10 per cent from 3,710 in Q2 to 4,148 in Q3.

Drawdown lifetime mortgages remained the most popular in Q3, accounting for 61 per cent of market sales. This is followed by lump sum lifetime mortgages at 36 per cent, with home reversion schemes accounting for 2 per cent of all sales in Q3.

The average amount released on an equity release product remained stable in Q3 at £49,703. However, this figure has risen 6 per cent over the last year from £46,754 in Q3 2010.

SHIP director general Andrea Rozario says: “This has been an excellent quarter for the equity release market. Considering the wealth locked up in a property as part of general financial or retirement planning is essential, as it will continue to be the greatest asset most people have as they approach retirement.

“We feel that breaking the psychologically important £200 million barrier for new advances in Q3 is fantastic news for an industry that is recognised to have a huge latent demand.”


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm