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Equity Release Continues to Prosper Despite Economic Turmoil

As the global credit crunch tightens its grip on the UK housing market and industry experts predict we are yet to see the worst, the equity release market (http://www.keyrs.co.uk) continues to buck the trend and prosper. According to the UK Equity Release Market Monitor released today from Key Retirement Solutions, the leading independent specialist equity release advisor (http://www.keyrs.co.uk), the number of plans taken out in the second quarter of 2008 increased by 6.67% compared to the same period the previous year, exceeding more than 8,000 plans.

The Market Monitor, which tracks activity in the UK equity release market, has found that the total amount of equity released by retirees in the second quarter (April-June) of 2008 reached 390 million, a 13% increase on the same period in 2007, bringing the total amount of equity released (http://www.keyrs.co.uk) in 2008 up to just over 680 million.

Looking collectively at the first six months of 2008 (January to June), the number of plans taken out is marginally down on the same period last year (5%), however actual lending for this period has increased from 667 million in the first half of 2007 to 683 million to date in 2008.

Dean Mirfin, Business Development Director at Key Retirement Solutions said: "Whilst lending in the mainstream mortgage market continues to decline month on month, and in comparison to last year, it is good to see some positive news in the lending arena. The figures show that demand for equity release (http://www.keyrs.co.uk) is strong, and positively, lenders are able to lend to those who want to release money from their homes."

Drawdown continues to lead the way as the plan of choice

As was predicted in the previous Market Monitor, the drawdown market - whereby a consumer 'draws down' the cash in stages as and when they require it - has increased 9% compared to last year and now holds a 59% share of plans sold in the market (compared to 50% in quarter two 2007).

The standard lifetime mortgage, where a cash lump sum is given at the start with no monthly payments to meet, has continued its decline to 37% from 46% in the second quarter of 2007.

Dean Mirfin concludes: "With considerable stability amongst providers and demand for equity release continuing, we can have a degree of confidence that, as speculated many times historically, those who want to release equity (http://www.keyrs.co.uk) from their homes to maintain and enhance their lifestyles will continue to do so despite difficult economic circumstances. At a time when the cost of living is increasing dramatically, equity release no doubt will play an increasing part in our retirement finances.

"Equity release is not always the right solution for everyone and we would strongly recommend seeking independent financial advice before committing to any form of equity release. Our independent guide to releasing equity from your home is the best place to start for anyone investigating the option of equity release and discusses the alternatives too. This can be obtained by calling 0800 531 6010 or visiting our website where the guide can be downloaded at http://www.keyrs.co.uk."

For further information, or to receive a full copy of the Key Retirement Solutions UK Equity Release Market Monitor for 2008, including maps and graphs, please contact Dean Mirfin or visit http://www.keyrs.co.uk/press.

About Key Retirement Solutions

Key Retirement Solutions is the UK's leading independent equity release specialist, currently conducting 31% of all SHIP (Safe Home Income Plans) intermediary equity release business in the UK.

Key Retirement Solutions (KRS) is an independently managed company following the management buy-out from Chesnara, formerly part of Countrywide Assured Group plc, on 1st July 2004.

KRS is also a leading member of SHIP, the equity release industry body, and has campaigned rigorously and effectively with SHIP for regulation across the equity release sector. This campaign was rewarded by the Governments confirmation that they will regulate home reversion plans, which will bring them in line with lifetime mortgage regulation.

Contact :

Louise Willcox

Lansons Communications

Tel: 020 7294 3676

louisew @ lansons.com

Key Retirement Solutions / Lifetime Advisory Services

Dean Mirfin, Business Development Director

Tel: 07879 678737

Dean.Mirfin @ keyrs.co.uk

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