SHIP THIRD QUARTER RESULTS TO 30 SEPTEMBER 2004 30% Growth Over Second Quarter 2004 13% Growth Over Third Quarter 2003
The seventeen members* of UK equity release industry body, SHIP (Safe Home Income Plans), that represents over 90% of the Equity Release sector, today report record quarterly new business figures for the three months to 30 September 2004.
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.”
EndsFor further information, please contact:
Laura O’Connell/Fran Read The Wriglesworth Consultancy Phone: 0207 845 7900
Jon King SHIP Chairman Phone: 02920 371725
Notes to Editors:
SHIP new business figures:
About SHIP:
Safe Home Income Plans (SHIP) is the UK’s leading professional body for equity release product providers, representing the interests of its 17 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 17 members* are:Abbey, BPT Bridgewater, Ecclesiastical Life, GE Life, Hodge Equity Release, Home & Capital Trust, In Retirement Services, Key Retirement Solutions, Mortgage Express, National Counties Building Society, New Life Mortgages, Northern Rock, Norwich Union, Portman Building Society, Prudential, Standard Life, Stroud and Swindon Building Society. Since 1991 SHIP has enabled the home income plan market to expand successfully and safely. Surveys carried out by member firms point to over 98% of plan holders being happy with their plans. SHIP is dedicated to the protection of planholders and promotion of safe home income and equity release plans. SHIP’s aim is to reassure the general public that by appointing a SHIP member to represent them they will receive in return the highest level of integrity and service, combined with a fair, straightforward full presentation of their plans. Each SHIP member is bound by a vigorously enforced Code of Practice and adheres to professional Rules of Conduct.This code has been welcomed by Age Concern.Any scheme endorsed with the SHIP logo will be properly explained and safe.A SHIP plan guarantees that you cannot lose your home – whatever happens to the stock market or interest rates. From 31 October 2004, Lifetime Mortgages are regulated by the FSA along with all other mortgages. However, FSA regulation does not cover product design, thus the SHIP Code will remain as valid as ever in providing comprehensive consumer protection. Also as of 31 October SHIP has introduced a tough new code of practice for Home Reversions, covering the sales process and complaints and compensation. This provides strong interim protection until home reversion schemes are also regulated by the FSA (as announced 10th May 2004).