SHIP Third Quarter Year Results to 30 September 2007

Third quarter figures released today by the nineteen members* of UK equity release industry body, SHIP (Safe Home Income Plans), demonstrate a clear resilience to the recent credit crunch felt by the mainstream mortgage market.

Overall Business Figures

The total number of new equity release plans sold in Q3 2007 increased 15%, year on year, from 6,954 – Q3 2006 to 7,981 – Q3 2007. The total value of new business written reached £325.3 million, the highest quarterly figure since 2005, and contributed to an annual rolling year total figure of £1,238.9 million at the end of Q3 2007.

Home Reversions

Home reversion schemes saw the beginnings of their predicted growth this Quarter. Since these schemes were regulated by the FSA in April this year the amount of new business written for home reversions on Q3 2007 increased 20%, year on year, from £18.2 million to £21.9 million – Q3 2007.

Drawdown Mortgages

Drawdown mortgage options also showed no signs of slowing. These plans now account for 15% of all new equity release plans sold compared to just 26% in Q3 2006.

Jon King, Chief Excutive of SHIP commented:

“This quarter’s figures demonstrated the continuing growth of the equity release markest and its resilience to the present economic climate. Unlike mainstream mortgage lending equity release has the ability to ride our market turbulence and is set to increase in size by the end of the year. Consumer confidence in equity release is also protected with SHIP member products ensuring a ‘No Negative Equity Guarantee’.

“The growth in home reversion business is encouraging and is testament to all industy’s persistence in calling for full regulation of the market. As these products become recognized as viable options for a population where life expectancy continues to increase the popularity in these products is expected to grow.”

SHIP new business figures: