Provider withdrawals worsen equity release results

Published on

The value of the equity release market has fallen by 13% from £244.7 million in Q1 2009 to £213.4 million in Q1 2010,according to SHIP, the equity release provider trade body.

The total number of customers year-on-year has fallen by 7%. The percentage of sales through intermediaries has remained stable at the 79% mark.

Home reversion advances rose by 10% on Q4 2009 to £4.4 million, while drawdown mortgages remained the most popular form of equity release, claiming over half of the market share (55%) with £116.4 million worth of advances. Lumpsum mortgage sales were £92.6 million in the quarter. The distribution of equity release continued to be dominated by intermediaries, who accounted for 79% of all sales.

Total market advances fell by 8% in the first quarter of 2010 compared with Q4 2009 (£213.4 million in Q1 2010, £231.7 million in Q4 2009). SHIP says this was to be expected as a number of providers have withdrawn products from the market, either temporarily or permanently.

The total number of customers also fell, by 3.5% quarter on quarter from 4888 to 4716.

Andrea Rozario, director general of SHIP, said: “These figures show that despite the withdrawal of some big providers from the market the equity release market remains robust. The bad weather at the beginning of the year has also obviously had some impact on the first quarter results with conditions making business difficult but reports from members now show a very strong run rate.

COMMENT ON MORTGAGE SOUP

We want to hear from you!
Leave a comment and get the conversation started.
You need to register to post, so please login or sign up below.

Latest articles

Goldman Sachs discloses 3.15% stake in Secure Trust Bank

Goldman Sachs has reported a 3.15% voting interest in Secure Trust Bank following a...

Market Harborough launches rental scheme offering deposit contributions to first-time buyers

Market Harborough Building Society is offering aspiring homeowners the chance to recover 60% of...

Tipton adds discounted rates for expat and limited company landlords

Tipton & Coseley Building Society has expanded its variable rate buy-to-let mortgage range with...

WIS Mortgages sets out five-year adviser growth strategy

WIS Mortgages has announced a five-year growth plan centred on expanding its adviser community...

Nivo targets specialist lenders with AI-powered case management service

Nivo has launched an AI case coordination platform aimed at helping specialist lenders process...

Latest publication

Other news

Goldman Sachs discloses 3.15% stake in Secure Trust Bank

Goldman Sachs has reported a 3.15% voting interest in Secure Trust Bank following a...

Market Harborough launches rental scheme offering deposit contributions to first-time buyers

Market Harborough Building Society is offering aspiring homeowners the chance to recover 60% of...

Tipton adds discounted rates for expat and limited company landlords

Tipton & Coseley Building Society has expanded its variable rate buy-to-let mortgage range with...