The number of equity release products on the market surged by 21% in the first five months of the year to reach a record high of 769, according to data from Key Partnerships.

In its analysis of product availability, Key’s equity release referral arm found that the number of deals on offer has more than doubled from 306 in 2019.

Key says that this growth in the number of plans has been accompanied by increasing innovation from lenders with a wider range of flexible features for borrowers to choose from. 

Drawdown has become a widespread feature with 58% of equity release products now allowing this.

There has been a dramatic increase in the number of plans offering downsizing protection, with these deals now representing 46% of the market.

Borrowers who want the option of making ad hoc fee-free repayments can now do so on 41% of products.

Those wishing to pay down some of the interest during the life of their loan can choose to do so on 44% of deals.

Meanwhile 57% of products have fixed early repayment charges; 46% of plans are now available to those living in sheltered housing and 26% offer inheritance protection.

Key Group business development director Jason Ruse says: “The growth in the equity release market has been remarkable with the number of products available doubling in just two years which provides significantly more flexibility and options for clients.  

“The number of features has also boomed with over 300% more products offering options such as interest repayments, downsizing protection and inheritance protection.

“While this type of growth in numbers and features should be welcomed, it does highlight the need for advisers to keep a close eye on what is happening and what features each lender is able to offer. 

“Things are changing fast at the moment and in just six months, we saw 21% more products that advisers need to consider. 

“One of the reasons for this is that the majority of customers during the pandemic have released equity due to an immediate need, but as the UK edges closer to less restrictions we will see clients releasing equity to fulfil both retirement as well as aspirational needs

“You may be able to dabble in some markets but this is certainly not the case in the later life sector and those who haven’t transacted business for a while should consider whether setting up a referral relationship might not be a better idea.  

“Being able to refer your client with confidence to a specialist adviser who fully understands the market is going to pay greater dividends in the long term.”