This equates to around £558 million of released equity, with over half of borrowers (53%) using some of their funds for mortgage repayments. This was followed by credit cards (47%) and loans (36%).

On average borrowers owed £53,399 on their mortgage, with £11,640 owed on credit cards and £12,728 due on loans.

It was the over-55s in Yorkshire and the Humberside who devoted the largest chunk of the equity released towards repaying debt, at 49%. This was followed by London and Wales (both 47%).

By contrast borrowers in the North East (29%) and Scotland (32%) used the least.

Of the money released in order to pay off debts, Londoners used the largest proportion on their mortgages (76%), ahead of those in the East Midlands (71), South East and South West (69% each).

Will Hale, CEO at Key, said that while most people want to reach retirement free of debts, this is not the reality for many, particularly those who took out interest-only mortgages and now face the prospect of finding a significant lump sum in order to repay the balance.

He continued: “In H1, over £500 million worth of borrowing was repaid using housing equity – allowing people to retire with confidence, without the burden of needing to make regular monthly payments or facing the prospect of having to sell their home.

“With equity release rates starting from under 2.5% and many products allowing ad hoc capital repayments or ongoing interest repayments, these flexible plans allow people to proactively manage their borrowing and shore up their finances. Something that is arguably more important than ever given the current economic uncertainty.”