Equity release sales increase 5%

| July 19, 2009 | 0 Comments

The number of homeowners opting for equity release rose by 5% during the second quarter of 2009, compared with the previous three months.

However, on an annual basis volumes were down 22% at 5,328.

Safe Home Income Plans (SHIP) the body that represents the UK’s equity release providers, has also reported a 14% increase in the sale of drawdown plans, which have been proving popular since house prices began their decline.

Drawdown equity release plans now account for 51% of the market and are partly responsible for a fall in the amount of money released because borrowers can take a more staged approach to cashing in on the value of their homes.

During the three months to the end of June, the value of equity release plans sold fell to £232.9 million, compared with £245.01 million in the previous quarter.

The decline took the average amount released down to £43,712, compared with £48,287 in the first quarter of the year.

SHIP’s director general, Andrea Rozario, comments: “While the equity release market is still suffering along with the mainstream mortgage market, it is encouraging to see … evidence of some positive movement.”

He adds: “The quarter on quarter increase in the number of plans shows that consumers are once more starting to believe in the UK housing market.”

Tags: , ,

Comments (0)

Trackback URL | Comments RSS Feed

There are no comments yet. Why not be the first to speak your mind.

Leave a Reply

Visited 1512 times, 1 so far today