The equity release market continued to struggle to significantly grow in 2006.
Figures from Safe Home Income Plans released today reveal only a marginal three per cent increase in lifetime mortgage business last year from £1.05bn in 2005 to £1.08bn last year.
Home reversion business accounted for £73.5m of new business in 2006, up almost 35 per cent from 2005.
Drawdown plans also continued to witness a steady growth in 2006. During Q4 2006 £89.9m was taken from £202.9m committed new business. This compares to £14.2m taken from £31.3m of committed new business in Q4 2005
Ship chief executive Jon King says: “2006 has seen a substantial increase in the number of new equity release plans sold. Both home reversions and lifetime mortgages have been party to this increased interest and the number of customers keen to use flexible drawdown mortgages is highly encouraging.”