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Q1 increase in equity release, KRS reveals
Equity release plan sales and total lending grew in the first quarter of 2012, analysis by Key Retirement Solutions has found.
Figures from the national advisory firm showed that total sales rose 6.4 per cent to 4508 plans in the first three months of 2011, compared with 4237 for the same period of 2011, while total lending was £217.1m, up from £213.4m year-on-year.
Drawdown sales accounted for 66 per cent of total sales in the first quarter, compared with 55 per cent for the whole of 2011. Enhanced drawdown and single advance enhanced sales made up 10 per cent of the market.
Dean Mirfin, group director of KRS, said: “As the return to recession hits home to those on fixed incomes it comes as no surprise that in the first quarter of this year we have seen a further increase in the levels of equity being released. Importantly the increase in the levels of drawdown are significant allowing greater flexibility for borrowers.
“The levels of enhanced equity release, now accounting for a 10 per cent market share, are also growing in significance.
“Providing financial support to family members still accounts for almost one in four of all plans taken out during the period, showing that equity release is helping across generations during these testy financial times.”
Blair Cann, senior partner for Hertfordshire-based M Thurlow & Co, said: “We did not do much equity release in 2011. Our volumes this year are not colossal but we have a couple of inquiries going through at the moment.”
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