A total of £275.7 million of equity was released by SHIP members in the second quarter, 14 per cent higher than the £242.7 million released in the first quarter.
Lump sum mortgages accounted for 53 per cent of Q2 loans, drawdown mortgages for 42 per cent and home reversions just 5 per cent.
In terms of distribution, the percentage of total equity release business carried out by the intermediary channel relative to the direct market fell slightly from 74 per cent in Q1 2008 to 71 per cent in Q2.
Ship director general Andrea Rozario says: “This success underlines the robust 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 pensions contributions and the very high levels of personal wealth held in housing equity.”