Year on year, this was an increase from 6,417 - Q2 2006 to 7,439 – Q2 2007. The total value of new business written reached £302.3 million, the highest Q2 figure to date, and contributed to an annual rolling year total figure of £1,208.7 million at the end of Q2 2007.
These figures contribute towards a record half year for both the number of new equity release plans sold and the total value of new business written by SHIP members. The number of new plans sold reached 14,224, increasing 11% from half year figures 2006 (12,780 – 2006), and £596.2 million was taken in new business – a 10% increase on half year 2006 (£541.8 million).
Drawdown Mortgages
Drawdown mortgage options continued to increase significantly and represented the most pronounced growth of all equity release business for SHIP members. These plans now account for almost 47% of all new equity release plans sold compared to 21% in Q2 2006 (1,362 – Q2 2006, 3,489 – Q2 2007)
During Q2 2007 £107.7 million was taken from £217 million committed new business compared to £44.2 million taken from £73.7 million of committed new business in Q2 2006.
Jon King, chief executive of SHIP, commented: “This quarter’s figures demonstrate tremendous growth in business for SHIP members and the equity release market as a whole. The number of new plans sold represent not only a record second quarter but also contribute towards a record half year since figures were recorded.
“The growing popularity of drawdown plans is made ever more apparent from these figures. Such schemes now account for roughly 47% of all new business sold and almost half of all lifetime mortgage plans.
“As customers become aware of the growing flexibility within equity release, and the options available to them it seems more people are becoming aware of the benefits such plans can offer and see equity release as a real alternative to help fund their retirement.”
