The number of equity release products on the market has hit a new high of 769, according to data from Key Partnerships, the equity release referral service arm at Key Group.

This is a 21% increase since the start of 2020 and more than double the amount of plans that were available in 2019 (306).

Key Partnerships noted that growth in the number of plans has been accompanied by increasing innovation from lenders, with more borrowers able to access a range of flexible features. The number of plans on the market offering downsizing protection (+392%) increased the most over the two years, followed by ad hoc fee free repayments (+278%) and interest repayments (+319%).

The ability to make ad hoc interest free repayments (+278%) has also soared with customers keen to enjoy the flexibility this offers. Drawdown was the feature with the smallest increase in plans but has still seen a climb of +86% in the last year.

“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,” commented Key Group business development director, Jason Ruse.

“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.”

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