SHIP FIRST QUARTER YEAR RESULTS TO 31 MARCH 2006
STEADY GROWTH IN EQUITY RELEASE, HOME REVERSIONS CONTINUES ITS RENAISSANCE AND DRAWDOWN NOW ACCOUNTS FOR ALMOST A FIFTH OF TOTAL NEW BUSINESS
The eighteen members* of UK equity release industry body, SHIP (Safe Home Income Plans), that represents over 90% of the Equity Release sector, today report first quarter figures to 31 March 2006 that demonstrate steady growth.
Overall Business Figures
The total value of new business written was £279 million, an 11% increase on Q1 2005 (£251.4 million), and contributing to an annual rolling year total figure of £1,131.1 million for Q1 2006.
Year on year the value of written lifetime mortgage business increased 9.2% from £238.1 million in Q1 2005 to £260.1 million in Q1 2006. However, comparing quarter on quarter, the value of new lifetime mortgages increased less dramatically, on a rolling year basis, from £1,048.9 million to £1,070.9 million, a growth of 2.1%.
Home reversions continues to grow strongly, accounting for £18.9 million worth of new business, a 41% increase on Q4 2005 figures (£13.4 million) and 42% up on the equivalent quarter last year (Q1 2005 £13.3 million).
Drawdown Mortgages
Drawdown plans now account for almost 20% (19.1%) of all new mortgage business compared to 8% (7.7%) in Q4 2005.This demonstrates strong growth in this product which offers increased flexibility to customers.
Jon King, Chairman of SHIP said:
“Equity release business has continued to grow steadily throughout the year. The continuing growth in home reversions is encouraging and the impressive increase in drawdown mortgages signals the growing interest in these new more flexible products.”“The steady, sensible and managed expansion of the sector is an excellent sign of the growing maturity in this sector. By maintaining gradual growth SHIP members can ensure that the high standards of products and services we have worked hard to provide can continue.”
-ENDS-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:
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 18 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 18 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, Portman Building Society, Prudential, Standard Life, Stroud and Swindon Building Society.