News
Print friendly version 26 Jan 2009

Equity release lending falls 9% in 2008

Safe Home Income Plans (SHIP), the equity release industry body, has published its full year figures for 2008, revealing a 9% year-on-year decline in the value of lending.

The total value of new business written reached £1.095bn, down from £1.210bn in 2007. There was also a 4% fall in the number of plans sold, from 29,293 to 28,224.

SHIP argued the figures demonstrate the strength of the sector, and in particular lifetime mortgages, as the decline is much smaller than the 30% fall in overall mortgage lending.

The role of intermediaries in the distribution of equity release remains unchanged, according to the results, with 63% of sales coming through advisers – the same proportion as in 2007.

Andrea Rozario, director general of SHIP, said: “Flexible drawdown schemes continue to prove popular as older consumers seek to find ways in which to fund their retirement against a backdrop of falling savings rates and the rising cost of living. The sales of drawdown plans was in fact the only product area to increase on last year’s figures, an upturn of 13% on 2007.

“This year will understandably continue to offer further challenges to the industry as a whole, and it is SHIP’s intention to continue its campaign to increase confidence and understanding of the benefits of safe equity release among advisers and consumers over coming year.”



STAY UP TO DATE: Subscribe to email alerts Subscribe to RSS

COMMENT ON THIS ARTICLE:

Login to add a comment

Need to register? Click Here








The truth about house prices

We are constantly bombarded with, often conflicting, information regarding house prices. Paula John provides a round-up of the major indices, explaining why they differ.


Read on...

Save money by overpaying

Michael White of online advisers Email Mortgages explains the benefits of paying more than you are obliged to for your mortgage every month.
Read on...

Your Mortgage magazine

Your Mortgage coverThe July/Aug issue of Your Mortgage is on sale now. In it we explain who now owns which UK banks and building societies; the ins and outs of interest-only mortgages, who they are appropriate for and the options for paying them off; we explain how offset mortgages work and how you could use one to make the most of your money, and why buying property overseas right now could be a smart move – if you look in the right place and arrange the right finance. Get your copy for the latest news, information and help.

Your Mortgage Awards

Your Mortgage Awards The Your Mortgage Awards aim to reward those lenders that have excelled in providing innovative and competitive products. Widely regarded as the UK's definitive consumer mortgage awards, the Your Mortgage Awards have now been running for 20 years.

Read about all the winners from the 2009-2010 awards in our e-magazine
Your Money logo
Latest news from Your Money

Visit Your Money website
Photo of Paula John, Editor In Chief of Your Mortgage Magazine
Visit the mortgage news section for all the latest developments affecting the UK property market.

Use our range of mortgage calculators to work out how much you could borrow.
divider

Online Poll

divider
divider
divider

Sponsored Links.