Sales of lifetime mortgages rose 29% on an annual basis this March, shows data gained from a Freedom of Information request logged by Quilter.

In total, 5,052 lifetime mortgages were sold in March 2022 compared to 3,930 in March 2021.

The most popular LTV band for lifetime mortgages, the data shows, is in the 10% to 20% range, of which an average of 988 mortgages have been sold each month since 2020.

Least popular are mortgages in the 50% to 60% range, of which 53 have been sold on average within the same time frame.

Quilter mortgage expert Karen Noye says: “These figures show that equity release is soaring in popularity. While there is a place in the market for these types of products, its essential that people use them for the right reasons.

“The cost-of-living crisis is biting, and it is worrying to think that people are ripping equity out of their homes just to pay their monthly bills.

“One of the benefits of equity release is that if you don’t want to leave your home then this product can allow you to release capital but still live in your property.

“However, lifetime mortgages do carry a significant risk that you may end up owing far more than you borrowed when the home comes to being sold. This is because this type of mortgage charges compound interest and if you don’t keep up with regular payments then the entire sum will compound.”

In late June this year, the Financial Conduct Authority sent a letter to later life mortgage providers expressing concern over older borrowers being more at risk of purchasing unsuitable equity release products or lifetime mortgage products.