View more on these topics

New equity release plans down 40% in Q2 2009

New equity release lending was down by more than 40 per cent in the second half of 2009.

In its Q2 2009 survey, Key Retirement Solutions found that the number of new plans was down 24 per cent, from 6,747 in Q2 2008 to 5,143. But the overall value of new lending fell 41 per cent to £189m, from £319m in 2008.

KRS says this fall is due to smaller average loan sizes, reflecting loan to value against reduced property prices and the level of lower initial releases from drawdown plans.

It also found that the average age of an equity release borrower fell from 68 to 67 years old over the year. Also, an increasing amount of borrowers used equity release as a means of debt management, up to 29 per cent of from 19 per cent in Q2 2008.

KRS group director Dean Mirfin says the decline in lending values means there is an increase in the uptake of drawdown plans where customers can release a lower amount initially and then return for further funds when needed.

He says: “The result for this quarter over the last are encouraging and we believe that the demand for equity release will continue, and following this turbulent period will return to, and then exceed, previous business levels.”

Recommended

Transition time

The FSA’s consultation paper 09/18 is now with us and provides the opportunity for the market to digest the FSA’s current RDIP proposals concerning the changing face of the financial services sector.

The investment clock

While Trump blazes blond in the political foreground, it’s easy to overlook the economic background to the new political dimension of 2017. Political risk will be a feature of the year: the unpredictable and untested Trump administration has already created uncertainty, which is unlikely to diminish, especially if protectionist rhetoric starts to outweigh promises of […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    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

    Email: customerservices@moneymarketing.com