MIp23-24_0210:MI 12 Jan 21/01/2010 17:11 Page 3
Equity release
23
Market
Monitor
The equity release market in 2009 was challenging but resilient,
according to Key Retirement’s 2009 Equity Release Market
Monitor
ey’s 2009 Equity Release Market
K
Monitor reveals that new plan
numbers were down 17% in
2009, at 21,305 compared to
25,790 for 2008. However, whilst
numbers are down the result
does reveal some resilience for
the market. Half way through the year, the
number of new plans was 17% down, compared
to the same period of 2008, showing that the
result overall has remained consistent rather than
the gap widening.
New lending figures exceeded the £1 billion
mark at £1.02 billion last year. This is a 14%
reduction compared to 2008 (£1.19 billion). This
reduction is relatively in line with plan numbers
but also is as a result of lower average property
values and increased take-up of drawdown plans,
according to Key. This option allows clients to
draw down the funds in stages, as and when
required, which can heavily reduce the overall
cost.
The Market Monitor also reveals the usage
trends for the money released. The most
dramatic change year on year comes in relation
to those using the money to repay non-mortgage
debt. This has increased to 35% of customers
from 11% in 2008 helping many retirees free up
much needed income.
www.mortgageintroducer.com February 2010 Mortgage Introducer
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