View more on these topics

Just Retirement sales up 13% year-on-year

Just Retirement has reported a sales increase of almost 13% to £763.5m while value of new business after tax was £42m up from £41m in 2006-2007.

Just Retirement says it has continued to introduce product variations throughout the year to extend its reach within the wider market.

It plans to roll-out more equity release products building on recent work in educating the IFA market on options within the market.

The value of new business for equity release was up 70.3% to £20.1m from £11.8m in 2006-2007.

The group says margins on equity release business improved during the financial year as spreads between our quoted mortgage rate and the risk free rate increased.

Just Retirement says it has been in a strong position as a result of its self financing business model in the face of the widely publicised lack of mortgage funding available in the market.

It also refers to research from Standard Life that reveals 8% of 55-65 year olds expect to borrow against their homes and says that if these intentions convert to actual demand, the equity release market will grow substantially over the next 10 to 15 years.

Just Retirement says that, notwithstanding the short term challenges, it remains confident of the long term prospects for the UK retirement market.

Recommended

A failure to tackle liquidity

The Intermediary Mortgage Lenders Association says the government’s mortgage rescue package fails to address underlying liquidity problems but hopes the completion of Sir James Crosby’s housing finance review will free up additional funding for lenders.

Five ways to invest in the connected world

Smart utility metering; fitness trackers; connected cars; smart factories; precision agriculture: the internet of things encompasses myriad applications. But how do you gain exposure – and profit – from this growing trend, asks Neptune fund manager & CTO Ali Unwin. Read more: Important information Investment risks Neptune funds may have a high historic volatility rating […]

Newsletter

News and expert analysis straight to your inbox

Sign up