SHIP SECOND QUARTER YEAR RESULTS TO 30 JUNE 2007
Strong growth in Equity Release during first half of 2007 Numbers of drawdown products continue to grow
The twenty members* of UK equity release industry body, SHIP (Safe Home Income Plans), that represents over 90% of the Equity Release sector, today report record half year figures to 30 June 2007 which demonstrates further strong growth in the market.
Overall Business Figures
The total number of new equity release plans sold in Q2 2007 increased 16%, year on year, 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.”
-ENDS-For further information, please contact:
Emma Bowden 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 20 members* are: Bradford and Bingley Ltd, Bridgewater Equity Release, Bristol and 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, Portman Building Society, Prudential, Retirement Plus, Standard Life, Stonehaven Equity Release, Stroud and Swindon Building Society, Tomorrow.