30% Growth Over Second Quarter 2004
13% Growth Over Third Quarter 2003
The results show a strong upward swing in new business, in comparison to both Second Quarter 2004 and Third Quarter 2003. Against a backcloth of provider preparations for Mortgage Day regulatory change, and a fall in general new mortgage business, the figures for Equity Release are striking.
The value of new business written to 30 September 2004 was £338.4 million, the highest ever for any Quarter, and 30% higher than the three months to 30 June 2004 (£260.4 million). Business written was also 13% ahead of Quarter 3 2003 (£299.2 million). On an annualised basis, new business is now equivalent to £1.3 billion, its highest level ever.
Jon King, Chairman of SHIP said: “These are striking and surprising figures, ahead of all expectations. With preparations for Mortgage Day, providers’ attention has not been focused on marketing activity which has been below normal levels. Our view is that this growth confirms again that equity release is established as an important mainstream product.
“With comprehensive consumer protection now in place from both FSA regulation of Lifetime mortgages, the newly launched strong SHIP Code of Practice for Home Reversions, and the existing SHIP Code of Practice which covers product design, consumer confidence in Equity Release will continue to grow, and we therefore expect new business growth to also continue strongly.”
