David Cooper, marketing director at Just Retirement said: "Despite the significant concern over events at Northern Rock, sales of equity release have only experienced a slight slowdown in what we would, in any event, have expected to have been a quiet quarter.
“This slight dip is due to extreme and temporary factors and the fact that sales have not plummeted demonstrates the significant underlying demand. The increasing number of drawdown sales shows that customers and advisers are more conscious of the issues involved and are taking action to ensure their continued security and access to funds.
“We expect to see demand continue to increase as people recognise the many possibilities their home offers to improve their situation. In the current economic environment, equity release continues to provide value for money in comparison to standard residential mortgages, with rates starting from 6.25% AER.”
