EQUITY RELEASE MARKET CONTINUES TO GROW – SALES INCREASE 15% FOR SHIP MEMBERS

SHIP Third Quarter Year Results to 30 September 2007

Third quarter figures released today by the nineteen members* of UK equity release industry body, SHIP (Safe Home Income Plans), demonstrate a clear resilience to the recent credit crunch felt by the mainstream mortgage market.

Overall Business Figures

The total number of new equity release plans sold in Q3 2007 increased 15%, year on year, from 6,954 – Q3 2006 to 7,981 – Q3 2007.The total value of new business written reached £325.3 million, the highest quarterly figure since 2005, and contributed to an annual rolling year total figure of £1,238.9 million at the end of Q3 2007.

Home Reversions

Home reversion schemes saw the beginnings of their predicted growth this quarter. Since these schemes were regulated by the FSA in April this year the amount of new business written for home reversions in Q3 2007 increased 20%, year on year, from £18.2 million to £21.9 million – Q3 2007.

Drawdown Mortgages

Drawdown mortgage options also showed no signs of slowing. These plans now account for 51% of all new equity release plans sold compared to just 26% in Q3 2006 .

Jon King, Chief Executive of SHIP commented:

“This quarter’s figures demonstrate the continuing growth of the equity release market and its resilience to the present economic climate. Unlike mainstream mortgage lending equity release has the ability to ride out market turbulence and is set to increase in size by the end of the year. Consumer confidence in equity release is also protected with SHIP member products ensuring a ‘No Negative Equity Guarantee’.

“The growth in home reversion business is encouraging and is testament to the industry’s persistence in calling for full regulation of the market.As these products become recognized as viable options for a population where life expectancy continues to increase the popularity in these products is expected to grow.”

For further information, please contact:

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

Jon King SHIP Chief Executive 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 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 19 members* are: Bradford & Bingley plc, Bridgewater Equity Release, Bristol & West Mortgages, Hodge Equity Release, Home & Capital Trust, In Retirement Services, Just Retirement, Key Retirement Solutions, National Counties Building Society, New Life Mortgages, Northern Rock, Norwich Union, Partnership Home Loans, Prudential, Retirement Plus, Standard Life, Stonehaven Equity Release, Stroud and Swindon Building Society,Tomorrow.