SHIP members predict boom in drawdown business

Natalie Holt
06-Jan-2009
Many equity release providers are predicting that drawdown business will account for 70% of the equity release market by 2010, research from Safe Home Income Plans shows.
Findings from the fourth annual SHIP member survey reveal that 80% of the trade body members are pushing for more providers to offer a drawdown option.

Some 42% of providers think that lifetime mortgage business will increase in Q1 2009.

But providers believe home reversion plans will fare far worse, with 83% of providers predicting either no change or a fall to the number of home reversions sold.

Some 89% of providers have seen the number of referrals from IFAs increase in the past year, compared with a 67% figure in 2008’s survey.

Andrea Rozario, director-general of SHIP, says: “This survey has shown that SHIP members remain confident in the future of the equity release market as they consider the long term prospects.

“The jump in the number of IFA referrals to providers shows that although there is still a need to educate IFAs about the benefits of equity release, the industry is coming together to recognise and promote the benefits of the sector.”