The value of business written in the quarter was £350.2 million, 3 per cent higher than the previous new business record of £338.4 million in quarter three 2004.
Of the new business written in quarter four, 96.5 per cent was lifetime mortgages with home reversions accounting for the remaining 3.5 per cent. Jon King, chairman of SHIP, said: “These results confirm emphatically that equity release is now a key financial product.
“Underlining this is the fact that SHIP members have written the greatest volume of business ever this quarter, despite the fourth quarter traditionally being the quietest time of the year, and some business disruption due to the introduction of mortgage regulation.”
Norwich Union, a member of SHIP, has announced record sales of its lifetime mortgage in the fourth quarter of 2004 with sales worth £145.4 million.
Mark Kelly, director of Norwich Union Personal Finance, said: “In quarter four of 2004 we wrote more lifetime mortgage business than in any other quarter and our figures are up about 11 per cent on the same period last year.” The value of new equity release plans sold in quarter four at Key Retirement Solutions also showed record figures rising to £385 million.
Colin Taylor, managing director at Key Retirement Solutions, said: “We believe that business growth in 2005 will be vigorous as new mainstream lenders enter the market and an increasing number of people seek to supplement their retirement income.”
