Equity release market records 6% annual increase

The number of equity release plans taken out in the second quarter of 2008 represent a 6.67% compared to the same period in 2007, according to Key Retirement Solutions.

The lender’s market monitor has found that the total amount of equity released by retirees in the second quarter of 2008 reached £390m, a 13% increase on the same period in 2007, bringing the total amount of equity released in 2008 up to just over £680m.

Looking collectively at the first six months of 2008, the number of plans taken out is marginally down on the same period last year, however actual lending for this period has increased from £667m in the first half of 2007 to £683m to date in 2008.

Dean Mirfin, business development director at Key Retirement Solutions, said: “During the first quarter of 2008 we experienced a decrease in the number of plans and overall lending in the equity release market. Throughout this period however comment from providers and advisers indicated that enquiries were on the increase towards the end of the quarter. The results of an increase over quarter one were to be expected, however the result for the second quarter compared to the same period last year are most defining.

“While lending in the mainstream mortgage market continues to decline month on month, and in comparison to last year, it is good to see some positive news in the lending arena. The figures show that demand for equity release is strong, and positively, lenders are able to lend to those who want to release money from their homes.”