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Friday 15th February 2008
The next big thing - drawdown plans experience an upswing
Looking back at the equity release market figures of 2006, drawdown plans were still new to the market and hence accounted for a mere 23.7% of plans taken out, with the traditional lifetime mortgage making up 68.7% of all lending.
However the equity release market monitor for 2007* showed that nothing is really set in stone. Drawdown plans reversed their underdog status and took first spot in 2007, accounting for 62% of lending in the first quarter of that year.
So why the shift to drawdown plans? After becoming established in 2006, many customers interested in equity release realised that drawdown plans gave them more flexibility and kept the overall interest costs down at the same time.
*published by Key Retirement Solutions