Ship says the increase, from to 275.7m from 242.7m in the first quarter is evidence that the equity-release sector is bucking the trend being seen in the mainstream mortgage market.
The intermediary market continues to dominate, although the percentage of intermediary business has dropped from 74 per cent in the first quarter to 71 per cent.
In terms of product type, the figures show continued growth in drawdown mortgages which have risen to 42 per cent of the market. Lump sum mortgages are still the most popular, with 53 per cent and home reversions represent 5 per cent.
Director general Andrea Rozario says: “This underlines the health of the equity-release sector despite the impact of the credit crunch that is having such a negative effect on the mainstream mortgage market.”
“It also serves to highlight the distinctly different forces that drive the equity-release market relative to the mainstream market, including the fundamental pressures of the UK’s ageing population, falling levels of pension contributions and very high levels of personal wealth in housing equity.”