COMPETITIVE EQUITY RELEASE RATES RIVALLING THOSE OF TOP MORTGAGE LENDERS’

SHIP, the UK equity release industry body representing more than 90% of the Equity Release sector, today announced new research showing that average equity release rates are now lower than the average standard variable rate for mainstream mortgage offerings.

Examining the annualised interest rates for the top ten equity release providers, SHIP has calculated the average interest rate to be 6.14%. In contrast, the average standard variable rate for the top ten mainstream mortgage lenders is now 6.49%. In addition, the interest rate for equity release remains fixed for the life of the loan, unlike mainstream mortgages which can fluctuate in line with any change in the base rate.

Table 1:Top Ten Lifetime Mortgage Rates*

Table 2:Top Ten Mortgage Lenders Standard Variable Rates**

Given the long term nature of the funding for this type of product these rates are even more competitive when you consider these rates are fixed for the entire term of the mortgage, regardless of any changes to the Bank of England base rate.

Jon King, Chief Executive of SHIP commented:

“It has never been easier, safer or cheaper to take out equity release and these latest figures show just how far the industry has come. The fact that the average interest rate from the top ten equity release providers is LOWER than the average from the top ten mainstream lenders delivers a solid rebuff to critics who claim this type of lending is prohibitively expensive and an option of last resort. It is clear that equity release compares favourably with many mainstream mortgage products and, for many people, offers a viable solution to their financial needs.”

* Data from The Exchange. Correct as of 18/08/2006 ** Data from www.cml.org.uk/sml/statistics : Largest Mortgage Lenders 2005

For further information, please contact:

Laura O’Connell/Fiona Chow The Wriglesworth Consultancy Phone: 0207 845 7900

Jon King SHIP Chairman Phone: 02920 371725

Notes to Editors:

About SHIP:

Safe Home Income Plans (SHIP) is the UK’s leading professional body for equity release product providers, representing the interests of its 20 members who provide home income and equity release plans. It was launched in 1991 to promote safe schemes. At present, 90% of the equity release market (in volume terms) is represented by SHIP members.

SHIP’s current 20 members* are: Bridgewater Equity Release, Bristol and West Mortgages, Ecclesiastical Life, GE Life, Hodge Equity Release, Home & Capital Trust, In Retirement Services, Just Retirement, Key Retirement Solutions, Mortgage Express, National Counties Building Society, New Life Mortgages, Northern Rock, Norwich Union, Partnership Home Loans, Portman Building Society, Prudential, Retirement Plus, Standard Life, Stroud and Swindon Building Society.