The report 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% over quarter 2, which itself exceeded quarter 1 by 9%.
The total amount released also increased by 13% 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% against quarter 2 with drawdown representing 65% of all plans from 64% in quarter 2, an increase from 57% 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% respectively.
The year to date result compared to the same period for 2008 is also very encouraging. Overall the number of new plans taken is 15% down year on year which is an improvement on quarter 2 which showed a 17% variance from 2008.
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.”
