Commenting, Andrea Rozario, director general of SHIP, has responded, saying: “We are naturally disappointed that Prudential has decided to withdraw from the equity release market. In the current economy finding sufficient funding is an issue that many organisations face and this shows that equity release is not immune to these issues.
“However, with the UK’s over 65 currently sitting on £907 billion worth of equity in their homes and many struggling with insufficient pension income, we firmly believe that there is a strong market for this product – now and in the future.
“Consumers can rest assured that while Prudential may have withdrawn from the equity release market, they can still find an equity release product which suits them and their individual circumstances by speaking to one of our other members or a financial adviser.
“We hope that as the fallout from the credit crunch eases and liquidity returns to the equity release market, that Prudential as well as other big financial brands will consider adding equity release to the portfolio of products they provide.”