Saffron Building Society has decided to suspend new lending on equity release after reaching a satisfactory level of lending.
A statement from the lender says it has temporarily withdrawn from lending following a successful year of lending in which 2009 targets have now been met.
The statement adds: "Withdrawing from the market at this time will ensure that Saffron's lending portfolio remains balanced and within our lending strategy. This careful portfolio management is key to retaining Saffron's strong capital position and is therefore in the best interests of our members."
It adds equity release presents a growth opportunity for lenders and it will review its options in 2010.
The news comes months after Coventry Building Society and Retirement Plus have both suspended equity release lending. The problems in equity release have also affected advisers with Newcastle Building Society Equity Release Advisers and In Retirement Services also ceasing business.
Dean Mirfin, group director at Key Retirement Solutions, says the decision may have been taken as the building society would have been swamped with business as other lenders pulled out.
He adds: "They may have not been able to cope with the business which was left to them or they could have felt they were successful to a certain level. Building societies also have different concerns at the moment in terms of funding which would force them to carefully consider their future. I hope they will come back though and it may just be temporary."
Saffron Building Society and Safe Home Income Plans (SHIP), the trade body for equity release of which Saffron is a member, were unavailable for comment.
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