Fairness launch gross sales sluggish as financial uncertainty continues

Gross sales of fairness launch plans slowed barely within the
second quarter amid ongoing financial uncertainty.

Figures from the Fairness Launch Council (ERC) reveal
gross sales of recent drawdown mortgages grew whereas take-up of recent lump sum mortgages
mirrored Q1 2018 volumes.

Total, 7,227 new drawdown lifetime mortgages have been taken
out in Q2 by older householders looking for to launch money from their properties.
This complete was up 5% from Q1 2019 and a couple of% from Q2 2018. Greater than two thirds
(67%) of recent plans taken out between April and June have been drawdown, the very best
share seen since This autumn 2017.

As compared, three,502 new lump sum lifetime mortgages have been
taken out, greater than any quarter previous to Q2 2018, regardless of being the bottom
quarterly complete seen during the last yr.

The common dimension of recent drawdown plans was constant
with the earlier quarter by way of prospects’ first withdrawal (£63,166
versus £62,416 in Q1), though prospects reserved extra modest quantities of
housing wealth for future use (£35,903 in comparison with £37,069 in Q1). The common
dimension of a brand new lump sum plan taken out in Q2 was additionally scaled again barely to
£93,712, down four% on Q1.

A complete of £1.85bn of housing wealth was unlocked within the
first half of 2019, versus £1.84bn a yr earlier, with 21,585 new plans agreed
versus 21,490 in H1 2018.

David Burrowes, chairman of the ERC, mentioned the variety of
folks drawing on housing wealth in later life stays excessive by historic
requirements and stays an essential fundamental stream funding choice for a lot of, regardless of
short-term exercise displaying indicators of the uncertainty that has impacted different
areas of the economic system.

Will Hale, chief government at Key, mentioned the figures
underline the continued energy of the market.  

He added that though gross sales of recent plans have slowed
barely, “present prospects clearly stay assured in persevering with to entry
their housing wealth to fulfill their wants and needs in later life”.

Key expects the market to choose up as macro
political and financial uncertainty eases.