The equity release market is booming claims research by Datamonitor, and is expected to continue growing at a dramatic rate for at least the next three years.
Equity release allows homeowners to capitalise on some of the value of their home without having to make repayments or move house.
It can supply some of the best mortgage rate offers for freeing up finance.
As house prices rise and pensions savings shrink, equity release products such as life time mortgages and home reversion schemes are expected to become even more popular.
Around £1.1 billion of housing equity was released last year and the market grew by 11 per cent between 2005 and 2006.
Datamonitor believes that the so-far niche sector has the potential to almost treble in size by 2010, growing almost 25 per cent a year to £2.9 million.
Major banks have yet to enter the market however, and Datamonitor has warned that this may result in some customers failing to receive professional advice.
“There is now more willingness among consumers to consider using property to boost retirement income due to factors such as inadequate savings and pension shortfalls,” said Datamonitor financial analyst Karina Purang.
“While this is a positive development for the equity release mortgage market, the industry needs to ensure that consumers are getting the best quality of advice possible before making a decision. At the moment, this is an issue.
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