Equity release advances up 10% year-on-year in Q1

Figures extremely encouraging, says SHIP

Equity release advances increased by 10% year-on-year in the first three months of the year, reveal figures published by Safe Home Income Plans (SHIP) today.

SHIP members lent £199.1m in Q1 2012, up from £181.6m in Q1 2011. The number of plans sold increased by 6% over the same period, from 3,838 to 4,057.

On a quarterly basis, both the number and value of plans sold fell by 8% between Q4 2011 and Q1 2012, which SHIP says reflects a usual seasonal slowdown in the market.

Drawdown mortgages accounted for 67% of the market in Q1 2012, up from 62% in Q4 2011 and the highest level since 2008.

Meanwhile lump sum mortgages accounted for 32% of the market in the first three months of the year, while home reversion plans took a 2% market share.

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