The number of equity release products has hit a record high of 1,557 in the past year, according to data from Key Partnerships.

The number of plans equates to almost treble the 547 on offer at the end of the first quarter of last year.

The data from the referral arm of equity release adviser Key Later Life Finance shows the market expanding, partly due to the introduction of the Equity Release Council’s fifth product standard on 28 March 2022. The standard means all new customers can now make ad-hoc penalty free repayments.

In Q1 2021, just 60% of equity release plans offered one-off fee-free repayments.

Fixed early repayment charges on equity release plans have also become more of a feature across the market – around 63% or 979 plans offer fixed early repayment charges making it easier and more affordable for customers to switch loans.

The data also shows that 979 equity release products included downsizing protection in Q1 2022, versus 254 in Q1 of last year.

Key Group business development director Jason Ruse says: “The expansion of the number of plans available on the market has been remarkable with the last year seeing the number nearly treble.  Developments in the market and the innovation in product design reflect the growth in lending and the demand from customers for more flexibility underlining how equity release has become a true later life lending market.

“The rapid widening of choice emphasises the importance of expert independent advice for customers and the need for advisers to stay up to date with what is a growing and fast-changing market. Advisers who do not regularly work in the market should consider whether setting up a referral relationship might not be a better idea.”