Equity release advances in the final three months of 2011 reached their highest level in two years, according to Safe Home Income Plans (SHIP). The latest data from the trade body revealed its members advanced £215.9 million in the fourth quarter of last year, the highest level since the final quarter of 2009 (£231.7 million) and substantially higher than the same period in 2010 (£188.5 million).
In addition, the number of plans sold also climbed higher to 4,399, the highest level since the first quarter of 2010 (4,716), and up from 4,148 in the third quarter. Yet despite the return to what SHIP called ‘more normal levels’ of sales in the final quarter, the value of plans sold in 2011 as a whole (£788.6 million) was below that of 2010 (£803.6 million).
Elsewhere amongst the data it was revealed that drawdown remains the most popular type of plan, now accounting for 62% of the market. This is followed by lump-sum mortgages (36%) and reversions (2%). Meanwhile, sales made by intermediaries were showed to account for 90% of all equity release plans sold during the quarter, the highest level since the organisation started tracking the data at the start of 2003. Andrea Rozario, director general of SHIP, said the figures were ‘excellent news’ and had put the industry on track for a strong 2012.
To make sense of it all, or to explore the possibilities of equity release, please contact our office on 01253 830050 and speak with Susanne Garrod (Mortgage Consultant).
