A new equity release product is launched every 28 hours thus far in 2020, according to analysis from Key Partnerships.
There are now over 525 whole of market plan options on the market, which is an increase of 510% from 2017 when there were just 86 plans available.
The number of options has also increased, rising from 315 at the end of 2019 to 525 at the end of last month.
New equity release product launched every 28 hours in 2020
There has also been a significant decrease in the average interest rate, decreasing from 4.6% in June 2018 to 4.05% in August.
The number of plans allowing interest payments has grown from 81 at the end of October 2019 to 186.
In addition, the amount of drawdown plans has also increased to 294 plans now being offered, in comparison to 90 in October last year.
According to the analysis, 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.”