Just Retirement has revealed an increase in equity release business of almost 11 per cent for the second half of 2008, compared to the same period in 2007.

The equity release provider has announced its interim results for the last six months of 2008 up to December 31, which show that Just Retirement equity release schemes & mortgage advances during the last six months of 2008 totalled £81.8million.

This marks a 10.7 per cent year-on-year increase in total equity release lending, up from £73.9million for the same period in 2007.

“Just Retirement has faced the exceptionally challenging conditions of 2008 with two principle goals: profitability and capital strength,” said Just Retirement CEO Mike Fuller, who believes the results show that the company has “been successful in both aims.”

“We have been able to continue to grow our equity release business at highly favourable margins,” he added. “We continue to enjoy a strong competitive position with a solid flow of business at attractive margins.

“Accordingly, we view the remainder of the equity release year with increasing confidence.”

Just Retirement’s figures for last year are in accordance with results from Hodge Lifetime, which showed that the UK’s entry into a recession has not dampened homeowners’ interest in taking out an equity release scheme from their property, but has actually increased it.

Hodge Lifetime’s research, conducted in February, found that independent financial advisors expect equity release sales to continue to rise in 2009, as retirees seek alternative forms of income due to falling returns on their investments.

“In the current environment, with stretched personal savings and inadequate retirement income, it is perhaps unsurprising that people are looking to equity release in order to make the most of the money built up in their homes,” explained Jon King, managing director of Hodge Lifetime said at the time.
http://www.equityreleasesupermarket.co.uk

Norwich Union claims it has regained its position as the number one provider of equity release products, following a series of product innovations and promotions during 2008.

The firm argued it secured the top spot after confirming revenue figures from reported sales of £249m, compared to £242m for Prudential, the former frontrunner in the equity release market.

Norwich Union highlighted a series of successes in 2008, including launching the proposition in Northern Ireland in January and increasing the LTV scale for its lifetime mortgages in April. In May the minimum cash payment for home reversion plans decreased from £25,000 to £15,000 while the home reversion cash-to-release scale jumped from 56% to 59%.

This was followed by a product enhancement launch in August which involved introducing a new suite of lifetime mortgages titled ‘Lifestyle’.

Norwich Union equity release has seen its market share increase between Q1 and Q4 in 2008 from 6.5% to 27% when dealing with advisers and 36% to 47% when dealing direct.

Commenting on their equity release schemes…“We have already seen a strong start to 2009, and we look forward to building on this achievement to benefit both our customers and advisers even further in the future.”

http://www.equityreleasesupermarket.co.uk

Safe Home Income Plans (SHIP), the equity release trade body, has called for feedback from advisers and other interested financial services organisations on what can be done to ensure the future success of the equity release market.

SHIP said the feedback will play an integral part in its policy consultation process which is due to result in the publication of a Discussion Paper this summer. SHIP said it would like to hear from all advisers and financial services organisations who advise on equity release schemes in this sector even if they are not currently active in the market.

The trade body requested feedback on what firms see as the major barriers to the growth of the equity release market, whether they consider consumers have reasonable access to equity release, what the role of the adviser is in the equity release process, and if this a role which needs to change. Further information is available on the SHIP website, www.ship-ltd.org.

Andrea Rozario, director general of SHIP, commented: “It is very important for us to talk to everyone who is involved and interested in the equity release process, in order to make sure that we have considered all viewpoints. We hope that advisers will be able to communicate the factors that sway a customer’s equity release decision, one way or another.

“It is equally important for us to hear from those not yet operating in the equity release market, to discover what they consider are the barriers to entry.”

http://www.equityreleasesupermarket.co.uk