Not all the news in the equity release market is negative at present.
One of the major equity release providers – Just Retirement has just announced record total sales for the three months upto September. Of this, they have stated that the sales of their equity release schemes have seen average advances increasing by over 50%.
Results for new business upto the three months to 30 September have shown total group new business increase by 16.4% to £213.5 million from £183.5 million over the equivalent period in 2008.
Comprised within this, Just Retirement’s equity release mortgage advances rose by 51.4%, from £33.1 million to £50.1 million.
These statistics have been helped by their competitive product approach & a reduction of competition within the equity release market.
Fresh sales of retirement annuities were also up by 8.7% to £163.5 million from £150.4 million in 2008.
The chief executive of Just Retirement, Mike Fuller said the results showed the resilience of the company’s economic model.
He stated that the first quarter had seen a further change in the markets with lower, but still present volatility in capital. Our ability to manage these changes and to generate sales growth is a credit to the group. In addition, I am pleased to state that this growth is consistent with our commitment to profitability and capital strength,’ he said.
Demand is subdued in equity release market due to the concern of property valuations; however the reduced competition has enabled Just Retirement to improve its market share.
Tags: Add new tag, equity release, equity release schemes, home reversion, home reversion schemes, Just Retirement, lifetime mortgages
