Safe Home Income Plans has reported drawdown plans to have the biggest growth in 2006, with the rest of the industry following with healthy growth.
During Q4 2006 drawdown plans made 89.9m, in comparison to 14.2m Q4 2005, a six and a half times increase of committed new business year on year.
The total value of new business written in Q4 2006 was 317.4m, with the number of new plans sold increased by 16% between Q3 2006 and Q4 2006, and was almost 19% greater than the number sold in Q4 2005.
Total home reversions business saw another impressive increase year on year, accounting for 73.5m worth of new business in full year 2006, up almost 35% from 2005.
However, SHIP says lifetime mortgage business saw only a marginal increase of 3% compared to 2005.
Jon King, chief executive of SHIP, says: It is clear that equity release is beginning to claim a significant place in the mortgage industry and its benefits are becoming more apparent to those at which it is targeted.
However, if anything is to be learnt from the SHIP members survey published this month it is vital that the industry as a whole work together to ensure good advice is readily available to these consumers and that IFAs wishing to enter the market are equipped with the full range of knowledge and skill required.