Drawdown accounts for majority of Q2 equity release plans

The number of new equity release customers rose by 5% from 5074 in Q1 2009 to 5328 in the second quarter of the year, according to latest Q2 data from SHIP.

The number of drawdown mortgages sales also increased by 14% over this period from 2376 to 2699.

However, while the number of sales increased, the value of products sold over this period fell to £232.9 million from £245.01 million. SHIP says that with drawdown mortgages, which are structured to allow more regular withdrawals of housing equity, now accounting for 51% (Q2 2009) of the market, the increase in customers but fall in value is “unsurprising&rdquo.