Download the full report at: http://www.keyrs.co.uk/media/MARKET-REPORT-ANNUAL-2011.pdf

The equity release market is firmly established back on the growth trend with the first annual rise in both total lending and sales of plans since 2007, analysis from leading independent equity release adviser Key Retirement Solutions.

Total funds* released rose 5.4% to £959.6 million the first rise in four years – while plan sales continued the growth seen in 2010 with a 1.6% rise to 22,366 in 2011, the group’s 2011 Equity Release Market Monitor shows.

And once untapped drawdown funds – which have yet to be released – are added in total lending rose to more than £1.3 billion underlining how innovation through increasing use of drawdown has transformed equity release.

Key Retirement Solutions is however concerned that not enough clients are using drawdown and want to see its share of the market increase. Its own sales see 74% of drawdown compared with the market average of 55%.

Customers using drawdown plans benefit from lower borrowing costs because they are able to draw funds when required rather than in a one-off lump sum. The rise of drawdown is reflected in the average amount released by customers falling again to £42,921 which compares with £43,519 in 2010 and £48,212 in 2009.

Dean Mirfin, Group Director at Key Retirement Solutions (www.keyrs.co.uk), said “A robust sales and factfinding process has resulted in Key’s percentage of new drawdown business for the year being 74%, considerably higher than the market average, and we believe that there is still work to be done in the sector to ensure that consumers are not taking on single advance equity release when they do not have a requirement for the funds all at once. Facfinds need to identify clearly when funds are required. Drawdown can save consumers many thousands of pounds on the overall cost of borrowing.”

Home and garden improvements remained the most popular use of equity release cash – 57% of customers used some or all of the cash for that with 32% using money to clear debts and 30% to help fund holidays. The numbers using cash for regular bills dropped from 21% in 2010 to 16% in 2011.

Across the country 7 out of 12 regions saw growth in the total number of plans sold with Wales seeing growth of 24% and East Anglia 15%. The North West saw a 8.25% fall in sales.

The biggest growth in total value released was in Wales where total value increased by a third while East Anglia saw totals climb by a quarter. In total eight out of 12 regions saw increases.

Dean Mirfin, comments further: “The equity release market is firmly established on a growth trend again after several years when the story has been about stagnation at best and decline for some providers.

“Innovation has enabled the industry to turn its fortunes around and the products available now are much more suited to customer needs by providing flexibility and control over the cost of borrowing.

“It is striking that there is around £343 million of undrawn cash ready to be used by customers. It may be they won’t use it or need it but in the past they would have been forced to take more money than they needed.

“Rate cuts and further innovation by providers including more plans offering enhanced terms for customers with medical or lifestyle conditions points to further potential growth this year.”

Across the country 7 out of 12 regions saw growth in the total number of plans sold with Wales seeing growth of 24% and East Anglia 15%. The North West saw a 8.25% fall in sales.

The biggest growth in total value released was in Wales where total value increased by a third while East Anglia saw totals climb by a quarter. In total eight out of 12 regions saw increases.

The full Market Monitor can be downloaded at Key Retirement Solutions’ website http://www.keyrs.co.uk/media/MARKET-REPORT-ANNUAL-2011.pdf

Anyone looking to release equity from their home can get Key Retirement Solutions’ independent guide to equity release by calling 0800 531 6010 or visiting https://www.keyrs.co.uk/free-guide.

“With an ageing population and increasing pressure on pensions, savings and investments, home equity release options are being given serious consideration by older homeowners,” explained Paul Wilson, group director at Key Retirement Solutions.

“We’re looking forward to forging a strong working relationship with Unique Insurance Services and bringing our expertise to a wider market. Sales of equity release plans and the amount released climbed in the first half of 2011, confirming ongoing growth and popularity.”

Equity release loans brokered through Key Retirement Solutions are repayable upon sale of the property and so there are no monthly instalments to meet. Typical clients remain in their property for life and have the assurance of no negative equity guarantees if there is any shortfall on sale, but all loans are portable. Home reversion schemes are also available if appropriate to an individual’s needs.

“Key Retirement Solutions is a market leader in the field of equity release and have helped thousands of people to successfully obtain a tax-free cash lump sum from their home to tide them over or open up new lifestyle opportunities,” added Diane Caplehorn, divisional director, from Unique.

“We have been receiving an ever increasing number of equity release enquiries in recent months and it made sense for us to cement a strong working relationship with Key. We hope that this will be the start of a highly successful long term commercial relationship.”

The new partnership is one of the first of its type in the UK, and both companies are exploring other opportunities to work in tandem. Key Retirement Solutions is a member of SAFER (Specialist Advisers For Equity Release), the alliance established in 2008 by the leading specialist intermediaries in the equity release sector.

Unique is Gallagher Heath’s in-house specialist brand provider of insurance products and solutions to charitable organisations. It offers specialist insurance products, now including equity release loan referrals, through 300 registered high street insurance brokers.

For further information about partnerships call Paul Wilson on 01772 508 501 or visit: www.keypartnerships.co.uk

Retired homeowners have total property wealth owned outright of £756.6 billion despite continuing housing market volatility, new research* from leading independent equity release adviser Key Retirement Solutions shows.

Homeowners aged 65-plus have gained a total of £4.4 billion in the past three months – equivalent to around £962 each – as the housing market showed signs of revival, Key Retirement Solutions’ Pensioner Property Equity Index shows.

Whilst overall housing wealth has increased there is a growing divide between winners and losers with six regions showing increases and five suffering declines.

Over-65 homeowners in Scotland were by far the biggest winners seeing average gains of £10,070. Over-65s in London and the East of England also benefited with gains of £3,867 and £3,548.

However over-65 homeowners in the North West, East Midlands and Yorkshire & Humberside suffered average losses of £1,420, £1,203 and £1,111 respectively.

Key Retirement’s figures show a third of property equity is owned by pensioners in London and the South East of England – in London over-65s own property without any mortgages worth £127.2 billion while in the South East pensioners own £122.24 billion of property without mortgages.

Dean Mirfin, Group Director at Key Retirement Solutions (www.keyrs.co.uk), said: “It is difficult to forecast exactly where the housing market is going and it remains volatile. While the gains of the past three months are welcome the picture is not at all clear and, as the figures reveal, the recovery is very patchy.

“However the over-65s own considerable property wealth which still represents a massive investment success as they no longer have mortgages and will in most cases have bought more than 25 years ago.

“The equity release market is seeing a rise in the number of plans sold with more pensioners opting for drawdown products which enable them to benefit from lower borrowing costs today, allowing for increased flexibility to access further funds over time as and when required.”

The table below shows the 11 areas of Great Britain monitored by Key Retirement Solutions’ index with six seeing gains.

The table below shows over-65 homeowners in the North West are most likely to own their home outright – Key Retirement’s analysis shows 684,200 own their homes without mortgages compared with 657,800 in the South West.

However higher property prices in the South East and London means over-65 homeowners there have more property wealth.

Anyone looking to release equity from their home can request an independent guide to equity release by calling 0800 531 6010 or by visiting https://www.keyrs.co.uk/free-guide.

Notes to Editors

* Key Retirement Solutions Equity Release index tracks the amount of equity held in property by people over 65 years old in Great Britain. Figures are based on analysis of data from the ONS Family Spending Report (2009), the Land Registry House Price Index, Registers of Scotland House Price Statistics and ICM (2010), Key Retirement Solutions UK Equity Release Market Monitor October 2010.

Leading independent equity release adviser Key Retirement Solutions is delighted to announce that it has expanded its award-winning service through a strategic partnership with Freemans Grattan Holdings, one of the UKs leading mail order companies.

The deal offers Key Retirement Solutions’ full range of retirement services to the over 55’s in the Freemans Grattan Holdings’ extensive customer base. Services include Equity Release, Annuities and Will Writing/Lasting Power of Attorney. Brands such as Freemans, Kaleidoscope, Grattan and Look Again will promote Key Retirement Solutions’ broad retirement services to over 700,000 customers.

Freemans Grattan Holdings is one of the longest established mail order companies in the UK. Freemans started trading in 1905, and Grattan will reach its 100th year of trading next year, in 2012.  The company has a reputation for being the most fashionable of the major UK home shopping retailers, and is one of the leaders in the UK catalogue market.

The new partnership is being launched through a range of communications to Freemans Grattan Holdings customers, as well as being promoted through the individual brands’ websites.  Dean Mirfin, Group Director, Key Retirement Solutions, said: “We are delighted to have agreed this partnership with Freemans Grattan Holdings, which is one of the UK’s best-regarded and experienced mail order companies.  It has a fantastic customer base in the UK who will now have access to our retirement product range.
“We’re proud to be able to play a pivotal role in providing Freemans Grattan Holdings’ customers with access to our range of retirement solutions.” Josie Wainwright, Financial Services Product Manager for Freemans Grattan Holdings, said: “Key Retirement Solutions’ suite of products will complement and enhance our existing financial services offering. The company’s experience in retirement services made sure the set up of the partnership went smoothly, and we are delighted that we can now offer this service to the customers who are over 55 in our base.”

Anyone looking to release equity from their home can request an independent guide to equity release by calling 0800 915 4735 or by visiting https://www.keyrs.co.uk/free-guide.

Retired homeowners have total property wealth owned outright of up to £752.1 billion despite ongoing housing market volatility, new research* from leading independent equity release adviser Key Retirement Solutions shows.

Homeowners aged 65-plus have gained a total of £863 million in the past three months – equivalent to just £244 each – as house prices stabilised, Key Retirement Solutions’ Pensioner Property Equity Index shows.

But they are still more than £17.5 billion down – around £4,000 each – since the start of the year.

Over-65 homeowners in London and Scotland were the biggest winners in the past three months with gains of £3,711 and £3,754 respectively while people in Wales and the East of England suffered the biggest losses. Over-65s in Wales saw average losses of £5,234 while those in the East of England suffered drops of £4,760

Key Retirement’s figures show a third of property equity is owned by pensioners in London and the South East of England – in London over-65s own property without any mortgages worth £125.78 billion while in the South East pensioners own £122.1 billion of property without mortgages.

Dean Mirfin, Group Director at Key Retirement Solutions (www.keyrs.co.uk), said: “The housing market has stabilised in the past three months but remains very volatile. The gains of the past three months are welcome but don’t make much a dent in losses this year.

“However the over-65s own considerable property wealth which still represents a massive investment success as they no longer have mortgages and will in most cases have bought more than 25 years ago.

“The equity release market is seeing a rise in the number of plans sold with more pensioners opting for drawdown products which enable them to benefit from lower borrowing costs today, allowing for increased flexibility to access further funds over time as and when required.”

The table below shows the 11 areas of Great Britain monitored by Key Retirement Solutions’ index with eight seeing gains.

The table below shows over-65 homeowners in the North West are most likely to own their home outright – Key Retirement’s analysis shows 684,200 own their homes without mortgages compared with 657,800 in the South West.

However higher property prices in the South East and London means over-65 homeowners there have more property wealth.

Anyone looking to release equity from their home can request an independent guide to equity release by calling 0800 531 6010 or by visiting https://www.keyrs.co.uk/free-guide.

Notes to Editors

* Key Retirement Solutions Equity Release index tracks the amount of equity held in property by people over 65 years old in Great Britain. Figures are based on analysis of data from the ONS Family Spending Report (2009), the Land Registry House Price Index, Registers of Scotland House Price Statistics and ICM (2010), Key Retirement Solutions UK Equity Release Market Monitor October 2010.

The Market Monitor shows the average initial loan-to-value of drawdown plans was 15% and the average overall LTV/facility was 27%.

Single advance Lifetime mortgages made up 23% of sales in 2011 compared with 25% in 2010 while reversions slipped to 2% from 3% of total sales.

The full Market Monitor can be downloaded at Key Retirement Solutions’ website http://www.keyrs.co.uk/media/MARKET-REPORT-H1-2011.pdf

Anyone looking to release equity from their home can get Key Retirement Solutions’ independent guide to equity release by calling 0800 531 6010 or visiting https://www.keyrs.co.uk/free-guide.

Notes to Editors

* Key Retirement Solutions market data seasonally adjusted. The figures presented in the KRS Market Monitor reflect the equity release market as a whole, this includes both SHIP (Safe Home Income Plans) and non SHIP business.Equity Release Growth Continues

Equity release adviser Key Retirement Solutions is to launch a care fees planning service. The new service will launch with live-in care specialists Helping Hands.

The service, which is set to launch in September, aims to ensure those needing care and their families receive the right advice and guidance before they start paying for domiciliary care.

Key’s Care Fees Planning Specialists will examine firstly whether clients are receiving all State and Local Authority entitlements. Then, following a review of existing income and capital, will then explore with clients further options including maximising investments, equity release, and immediate needs annuities.

Key’s Estate Planning team will also provide will writing services and can arrange Lasting Power of Attorneys for clients and their families, which are an essential part of planning for care.

Key Retirement Solutions began working with Helping Hands in April 2010 to look at what advice and guidance those receiving care and their families needed. This was well ahead of the Dilnot Report, which has proposed a £35,000 cap on individual contributions to care costs.

However Key Retirement and Helping Hands stress the Dilnot Report makes clear the recommendation that individuals in residential care will still have to pay an amount for accommodation and food of between £7,000 and £10,000 meaning that care in the home where practical will continue to grow at pace whether by choice or economics.

Dean Mirfin, Group Director at Key Retirement Solutions (www.keyrs.co.uk), said: “The Dilnot Report has turned the spotlight on long-term care and made a welcome start but we, and those receiving care, cannot wait for legislation. Families and people receiving care need help now which is why this service is crucial.

“The service is about providing information and choice at an important time, and is relevant for those about to be, or who are already, receiving care.”

Lindsey Edgehill, Helping Hands Marketing Director, said: “The right advice and guidance is critical and the funding of long term care is a significant consideration for everyone affected.

“People need a path through the complexities of care fees planning and legal considerations at what is a tough time and our partnership is aimed at addressing this issue.”

The care fees planning service will offer a free initial consultation and provide a full report outlining all options which may involve offering equity release.

Anyone looking to release equity from their home can get Key Retirement Solutions’ independent guide to equity release by calling 0800 531 6010 or visiting https://www.keyrs.co.uk/free-guide. Anyone interested in live-in care can call Helping Hands on 0808 180 9455 or go to http://www.helpinghands.co.uk/

Over-50s workers made redundant are the most likely to have to take a pay cut in order to get a new job, new research* from leading independent equity release adviser Key Retirement Solutions shows.

A nationwide study shows more than three out of four (77%) over-50s made redundant in the past three years took a pay cut to get back into full-time employment with 45% saying they had to take a “considerably lower” salary. Around 51% have to take a completely different role or work in a new sector to get back into employment.

Younger workers are much less likely to have to take a pay cut – just 50% of 21-30 year olds made redundant took a pay cut rising to 63% for the 41-50 age group.

And to some extent those taking pay cuts are the lucky ones – 46% over-50s made redundant during the past three years have yet to find a job. The study shows however that over-50s take on average 4.7 months to get back into work compared with 6.6 months for 41-50-year-olds.

Key Retirement Solutions launched the research after seeing a growing trend of 50-plus customers inquiring about equity release after suffering redundancy. In the first quarter of 2011 over 1 in 4 equity release plans were taken out before age 65, almost as many as the 65-69 age group. The fact that equity release plans are available from age 55 may prove to be a lifeline for many facing bleak prospects.

The effects of redundancy may well be forcing many to rely on borrowing to offset the effects, and for many that debt may well be carried through into retirement. It has seen a rise in debts among pensioners with the average customer taking out equity release owing £25,418 last year.

Dean Mirfin, Group Director at Key Retirement Solutions (www.keyrs.co.uk), said: “People in their 50s should ideally be gearing up for the final push on securing their finances in retirement so being made redundant is a particularly tough blow.

“We have seen a growing trend in customers at younger ages applying for equity release in order to supplement incomes at a time when many can ill afford any drop in income let alone the dramatic effects of redundancy.

“Redundancy is tough at any age but the younger you are the longer you have to bounce back. We’d urge anyone made redundant in their 50s to take a careful look at their finances and to get advice.”

The research shows 51% of over-50s are concerned about the risk of redundancy in the next 12 months – roughly in line with the average across all ages of 53%.

Around 24% of 51-60-year-olds say they have been made redundant in the past three years – slightly ahead of the average across all age groups. Those aged 21-30-years-old are most likely to have suffered redundancy with 34% saying they have lost their job in the past three years.

Not all over-50s who lose their jobs have to take a pay cut to get back to work – a lucky 6% got a higher paid job while 7% got a job at the same salary as before.

Anyone looking to release equity from their home can get Key Retirement Solutions’ independent guide to equity release by calling 0800 531 6010 or visiting https://www.keyrs.co.uk/free-guide.

The average pensioner with debt taking out an equity release plan on the value of their home has debts totalling £25,418, new research* from leading independent equity release adviser Key Retirement Solutions says.

And the average doesn’t tell the whole story – maximum credit card debts are as high as £90,000 with some pensioners clearing £250,000 unsecured loans and others struggling with £340,000 mortgages.

Key Retirement Solutions believes the credit crunch has driven pensioners to turn to credit cards to fund living costs when they’ve been unable to borrow in other ways and warns that the aftershock of the endowment mis-selling issue is another major factor.

Its analysis of more than 4,400 customers in 2010 shows one in three had debts run up from credit cards, loans or mortgages with many struggling with multiple debts.

Figures for the first quarter of 2011 show 31% of customers used some or all of the cash they raised from equity release to clear their debts compared with 23% for the last three months of 2010.

The debt burden takes a major bite out of pensioner household income – in 2010 pensioners with debts were putting £385 a month towards repayments. On an average pensioner household income of £17,727** before tax that amounts to 26% of income going on debt repayments.

But again averages don’t tell the whole story – some over-65s were paying as much as £2,099 a month on mortgages with others making £1,200 a month repayments on loans and £2,000 a month on credit cards.

The average owed on a mortgage is £30,838 while average credit card debts were £10,296 and average outstanding loans were £11,386, Key Retirement’s data shows.

Dean Mirfin, Group Director at Key Retirement Solutions (www.keyrs.co.uk), said: “Pensioners in line with the rest of the country have struggled to borrow money in the past three years and have increasingly turned to credit cards to tide them over.

“They are also feeling the effects of the endowment mis-selling scandal as they’re coming to the end of mortgage terms and struggling to pay off mortgages as their endowments have missed payout forecasts.

“It all adds up to a major squeeze on incomes but there is silver lining in that they could literally be sitting on considerable wealth in their own home. Clearing debt will transform their finances and provide a welcome boost.”

Recent announcements on endowment payouts from major providers show very low levels of payouts meeting targets – just 2% of Aviva plans and 5% of Standard Life’s are meeting targets this year.

The Financial Services Authority has also highlighted the issue of interest-only mortgages – it estimates 75% of those do not have plans in place to repay these loans.

Anyone looking to release equity from their home can get Key Retirement Solutions’ independent guide to equity release by calling 0800 531 6010 or visiting https://www.keyrs.co.uk/free-guide.

Notes to Editors

* Key Retirement Solutions own database 4,400 customers applying for equity release products in 2010

** ONS Wealth and Assets Survey

You can download the full KRS Market Monitor by visiting: http://www.keyrs.co.uk/media/MARKET-REPORT-Q1-2011.pdf

More than £219 million of housing wealth was released in the first quarter as the drawdown effect continued to boost equity release plan sales, analysis from leading independent equity release adviser Key Retirement Solutions says.

Sales of plans rose 3.7% in the first three months of 2011 to 5,812 compared with the same period of 2010 confirming the recovery in the market after three years of decline.

Key Retirement Solutions Equity Release Market Monitor shows the total value of equity release rose from £216.9 million in the first quarter of 2010 to £219.85 million in the first three months of 2011.

The growing use of drawdown, which accounted for three-quarters of all sales, was the main driver in market recovery with a further boost from the use of enhanced equity release aimed at customers with medical or lifestyle issues.

More 2 Life, which pioneered enhanced equity release when it became the first new lender in the market for three years in 2010, has firmly established itself as a major provider having gradually built its market share to over 10% in quarter 1.

But it is the ongoing rise of drawdown which is driving the revival as demonstrated by the fall in the average amount released by customers to £37,089 in the first three months of 2011 compared with £43,090 in the same period of 2010.

Drawdown – which accounted for 75% of sales in the first quarter compared with 68% in 2010 – benefits customers who cut borrowing costs as they can draw funds when required rather than in one lump sum.

Dean Mirfin, Group Director at Key Retirement Solutions (www.keyrs.co.uk), said: “The market recovery is on course after three years of decline with enhanced equity release making an important contribution.

“That clearly demonstrates the need for innovation and flexibility and shows that customers are happy to buy when the industry responds with products that suit their needs.

“The signs are positive for 2011 with new lenders poised to enter the market pointing to more competition and further potential growth.

“The latest Market Monitor now features increased analysis of the equity release sector and now includes a quarterly spot-light on a particular region. This quarter we look more closely at the uses of equity release for those in the South East. The report also now scrutinises more closely a particular use of equity release and this quarter we look at gifting.

“The Market Report now provides by far the most detailed and comprehensive analysis of the sector.”

Across the country 7 out of 12 regions saw growth in the total number of plans sold with the South East seeing the strongest growth – total value released was 16% higher in the three months.

Single advance Lifetime mortgages made up 23% of sales in the first quarter with 7% on enhanced terms compared with 28% in 2010 while reversions dropped from 4% to around 2% of total sales.

The full Market Monitor can be downloaded at Key Retirement Solutions’ website http://www.keyrs.co.uk/media/MARKET-REPORT-Q1-2011.pdf

Anyone looking to release equity from their home can get Key Retirement Solutions’ independent guide to equity release by calling 0800 531 6010 or visiting https://www.keyrs.co.uk/free-guide.

Notes to Editors

* Key Retirement Solutions market data