The data showed that the number of equity release loans increased by 6 per cent in the second quarter of this year.
The CML said that over the first six months of 2005, around 10,900 equity release loans were taken out with a total value of £492 million, compared to 15,000 with a value of £693 million in the second half of 2004. The total value of outstanding equity release deals stands at £4.6 billion, representing 94,000 mortgages.
It said that although growth in the first half of 2005 is lower than in previous years this is likely to be partly explained by seasonal factors and a slowdown in house price growth, dampening the willingness of borrowers to unlock the equity in their property.
Jackie Bennett, senior policy adviser at the CML, commented: “The fact there is still considerable unmortgaged equity in the over 65s, and lifetime mortgages only represent half of one per cent of outstanding mortgage balances, means this is an area with considerable potential for growth.”
ifs said brokers are increasingly realising the potential in the lifetime market, revealing that more than 1,000 intermediaries have registered to take its lifetime exam and that the numbers are continually increasing.
David Cooper, marketing operations manager at ifs, said: “We’re expecting the number of registrations to rise even more. Lifetime mortgages is a component part of our advanced CeMAP qualification so we expect brokers will be signing-up to that also.”
