MIp24-25_1209:MI 12 Jan 24/11/2009 16:36 Page 3
Equity release
25
he Equity Release Market Monitor
T
shows that the results for quarter 3
of 2009 improve further on those
achieved in quarter 2 over quarter 1.
The total number of plans taken out
during the third quarter of 2009 was
6,123 (2009 quarter 2 - 5,143, quarter 1 - 4,703,)
representing an increase of 19 per cent over
quarter 2, which itself exceeded quarter 1 by 9
per cent.
The total amount released also increased
by 13 per cent to £214 million (2009
quarter 2 - £188.9 million, quarter 1 - £183
million). Whilst overall lending has
increased the average loan has fallen by 4
per cent against quarter 2 with drawdown
representing 65 per cent of all plans from
64 per cent in quarter 2, an increase from
57 per cent in quarter 1. This results in
lower initial advances because clients hold
funds in reserve for later rather than taking
them now.
The report highlights some of the
regional variances including lending habits,
looking at the popular uses of equity
release. The latest report reveals that debt
and mortgage repayment has increased in
popularity increasing to 36 and 23 per cent
respectively.
The year to date result compared to the
same period for 2008 is also encouraging
for the industry. Overall the number of
new plans taken out is 15 per cent down
year on year which is an improvement on
quarter 2 which showed a 17 per cent
variance from 2008.
Commenting, Dean Mirfin, Key
Retirement Solutions’ group director,
said: "The continued growth in the
number and value of plans throughout
2009 is very encouraging. Pensioners are
hard hit by the current climate,
experiencing higher rates of inflation and
previously unknown low levels of returns
on their savings, as a result equity release is
providing a strong support for those who
want to maintain a good quality of life in
retirement. We expect the last quarter of
the year to be equally strong as more
confidence emerges.
“Whilst a number of providers have
temporarily had a break from the market
of late we expect that a number will soon
return, stronger and wiser. The demand
for greater income or capital in retirement
is continuing to grow and as a result
equity release has to be a serious
consideration for anyone who wishes to
boost their provision in, or approaching,
their retirement."
www.mortgageintroducer.com December 2009 Mortgage Introducer
Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28  |  Page 29  |  Page 30  |  Page 31  |  Page 32  |  Page 33  |  Page 34  |  Page 35  |  Page 36  |  Page 37  |  Page 38  |  Page 39  |  Page 40  |  Page 41  |  Page 42  |  Page 43  |  Page 44