This is according to the latest statistics from Key Partnerships, which revealed product numbers had increased 374% since 2017 meaning there were 525 deals on the market at the end of August.

The equity release referral business said increased competition with a focus on innovation, better rates and improved product features had seen whole of market plan options soar from 86 in 2017 to more than 500 today.

Indeed, rates had dropped since June 2018 when the average rate was 4.6% compared to 4.05% today.

And the number of plans allowing interest payments have grown from just 81 at the end of October 2019 to 186 last month.

The number of drawdown plans has also increased with 294 plans now offering it in comparison with just 90 in October last year. The number of plans offering fixed early repayment charges has also increased by 48% since October 2019.

Jason Ruse, business development director at Key Group said: “While the equity release market – as with other sectors – has had to work hard to weather the current pandemic, we have still seen significant product innovation and development.

“Indeed, with more funders than ever active in the market, there is more choice and more competitive interest rates than ever which is great news for customers.

“That said, it is important to ensure that when customers do look for support around how to access their housing equity, they consider all their options and pick the right product for them.

“With a product being launched roughly every 28 hours thus far in 2020, this can be a real challenge for those advisers who do not specialise in this market so they may find that they are better able to serve their customers by referring them to a trusted equity release specialist like Key Partnerships.”

Consumer knowledge

Key’s research is published just a day after property consultancy Knight Frank unveiled research which suggested more needed to be done to improve consumer knowledge of equity release.

It found nine in ten people had heard of equity release but one in three knew little about the later life product.

More than half of people aged between 40 and 49 thought equity release was a useful tool for financial planning, compared to less than a third of those aged between 60 and 69, said Knight Frank. This suggested perceptions about equity release improved through younger generations.

David Forsdyke, later life finance associate at Knight Frank Finance, said: “Our first Equity Release Survey reveals a growing awareness of the sector’s products, and perceptions are improving through younger generations.

“However, common misconceptions persist and there is still more to do to effectively share information at scale.”