SHIP results anticipate strong 2012 for equity release

SHIP has seen the highest level of lending for two years, according to their Q4 results.

The equity release trade body reported total advances of £215.9m loaned by SHIP members compared to £188.5m the same time last year. This is the highest level since Q4 2009 (£231.7m.)

In addition, the number of plans sold increased to 4,399 (Q4 2011) from 4,148 (Q3 2011.)

Director general of SHIP, Andrea Rozario said the results "puts the industry on track for a strong 2012."

Drawdown remains the most popular product with 62% of market sales followed by lump-sum mortgages (36%) and reversions (2%).

However recession continues to bite hard on the industry with the value of plans sold in 2011 (£788.6m) below that of 2010 (£803.6m). This could reflect the fact there were fewer providers in 2011 due to market consolidation.

Rozario added "This year promises to be a significant one in SHIP's history as we will be expanding our membership to include intermediaries, solicitors and other interested stakeholders. By the end of Q1 2012, we intend to announce the outline of the new body which will work to promote the benefits of these products and ensure consumers receive access to suitable products."