SHIP sees a 5% increase in new equity release customers in 2009

The leading equity release industry body, SHIP, have seen an increase in new customers looking to release equity in their property compared to this Quarter last year. Some attribute this to the recent rising house prices along with the shortfall that some see in their retirement allocations.

The fact that drawdown mortgages are now reported to take up 51% of the market suggests equity release is being used more as a scheduled supplement rather than for lump sum purchases.

Perhaps the increase is down to more government backing in the equity release industry after Baroness Hollis’ welcome intervention at the House of Lords:

Hollis claimed it was “distressing to see people unable to finance the retirement they need, while hanging onto an asset they could use.” See our views on the speech.

More recognition from the Government about equity release’s important role to play may see an even bigger increase for the next quarter.