Equity release lender reveals Q2 growth

More 2 Life has reported growth in its adviser market share to a total of 15% in the second quarter of 2016.

It means the firm has retained its position as the third largest lender in the UK by volume of sales.

In the same period last year, More 2 Life had a market share of 7%, showing more than a 100% increase 12 months on.

The latest quarterly lending release from the Equity Release Council shows that lending passed the £0.5 billion mark in Q2, the first quarter on record to reach that level, which means that on average £8.2m of housing wealth was withdrawn every working day. The three busiest quarters for equity release have all come in the last 12 months.

Lending via drawdown remains the most popular way for pensioners to take lifetime mortgages, growing 31% to £304m in Q2 compared to the same quarter in 2015. However, lump sum releases showed the biggest year-on-year growth, with a 37% (£56.8m) increase from £152.1m in Q2 2015 to £208.8m this year.

Dave Harris, managing director of More 2 Life, said: “At More 2 Life, we are predicting 2016 will be a record breaking year for the market, with over £2 billion of wealth being unlocked. We are seeing significant growth in demand for equity release with more retirees releasing value to help fund their costs in retirement.

“We are confident that we will continue on this stream of growth for the remainder of 2016 and we truly do believe we are on the cusp of something quite remarkable in the equity release market. The market is evolving quickly and will only continue to go from strength to strength as more lenders and funders come into the market.

“We believe in challenging the equity release market and encourage innovation from existing lenders as well as welcoming new entrants in to the market.”

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