Equity Release growth expected
Figures released by Safe Home Income Plans (SHIP) this week show a 25 per cent rise in intermediary sales of Equity Release products in 2007.
Mark Roberts, Head of Financial regulation at the ifs School of Finance, said:
“Such an increase was expected; the figures support what has widely been realised in the mortgage market already - that Equity Release is a strong growth area and an excellent opportunity for advisers to diversify.
The fact more and more advisers are gaining the necessary qualification to advise in this area - 2007 saw more than 2,000 advisers register for our Certificate in Regulated Equity Release -means consumers can now have greater confidence that they are receiving knowledgeable advice from a competent adviser. This has doubtless played a part in increasing sales volumes.”
The SHIP figures show that intermediary sales accounted for almost 19,000 of the 30,000 new Equity Release policies sold in 2007.
Andrea Rozario, Director General of SHIP, who holds the ifs’ Certificate in Regulated Equity Release, added:
"The choice of products and the competitiveness of rates has never been greater and, against a more uncertain housing market, the value of SHIP members’ product guarantees will offer complete reassurance to equity release clients."
SHIP represents over 90 per cent of the equity release sector, with all members signing up to a code of practice which includes a “no negative equity” guarantee.
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