Equity release rates fell to a record low of 4.48 per cent in the second half of 2019, before the Coronavirus pandemic hit the UK.

Late last year, two out of five equity release products had rates lower than 4 per cent, according to the report from the Equity Release Council.

The total sales of all mortgage products to customers aged 56 and over rose by 25,212 between H1 2015 and H1 2019, while 63 per cent of new customers opted for drawdown lifetime mortgage products – taking smaller amounts up-front than lump-sum products, the report found.

Equity Release chairman David Burrowes says property wealth will continue to be crucial in times of uncertainty, such as now.

“Hopes that the UK would leave behind the political and economic uncertainty of 2019 have been rapidly overtaken in recent weeks by the national and global response to the coronavirus outbreak.

“Reflecting on 2019, the equity release market remained robust, as for a second year running older homeowners unlocked nearly £4bn of property wealth.

“While uncertainty becomes the norm, property wealth will inevitably continue to play a role over the months and years to come, to help meet the wide-ranging needs of the UK’s ageing population.

“The increasing diversity of firms in the market reflects the wide range of consumer needs which property wealth is helping to address. It is also a sign of the greater frequency with which the option of releasing equity is coming up in retirement planning conversations.”

Key chief executive Will Hale says: “In these unusual and challenging times the equity release market remains open for business.

“Although the data from this report is predominately from before the Coronavirus pandemic hit, we have seen providers and brokers step up to the challenges and continue to serve customers. Lenders such as more2life had semi-automated evaluations up and running soon after the ‘lockdown’ was announced and most other lenders have now followed.

“This means customers have a good range of product options available to them and can progress with an equity release plan if it is appropriate for them to do so at this time. All advisers at Key have switched to 100 per cent telephone-based advice and we have worked with our solicitor partners and with The Equity Release Council to ensure all other elements of the process can proceed safely whilst maintaining robust protections for customers.”