Safe Home Income Plans has revealed the total value of new business written in Q2 2006 was 262.8 million, a drop of 5.8 per cent on Q1 2006 income.
But the figures were 0.75 per cent ahead of Q2 2005, which stood at 260.9m.
Ship adds that, year on year, the number of new cases has risen strongly from 5,745 in Q2 2005 to 6,417 in the latest figures – an increase of 12 per cent.
It says this is explained by the growing popularity of drawdown mortgages. Year on year, the value of written lifetime mortgage business fell fractionally from 250.3m to 249.2m.
Home reversions accounted for 13.6m of new business, up 28.3 per cent from Q2 2005.
Ship chief executive Jon King says: Whilst overall business value figures are flat, the number of cases is still climbing as more and more people consider using equity in their homes to fund retirement lifestyles.
Drawdown mortgages are proving particularly popular and are a welcome development in the industry as it means that clients are not burdened with unnecessary debt but are instead taking out a product that is suitable for their immediate needs with a reserve fund available, should they require it, to draw on in the future.