Research from the firm showed more than one-in-three (38 per cent) of their customers have applied for a lifetime mortgage for this reason in the last three months. It said this was largely down to maturing interest-only loans.

Other popular reasons for using equity release included making home and garden improvements (30 per cent), consolidating unsecured debt (28 per cent) or to gift relatives deposits for their first homes or paying university fees (19 per cent).

In addition some 20 per cent of customers use lifetime mortgages in order to move properties as mainstream lenders often restrict finances or terms to older borrowers.

Alice Watson, product and communications manager at Stonehaven, said: “An increasing number of our customers are applying for lifetime mortgages to clear their existing mortgage as it offers a sensible solution to the interest-only time bomb for those who do not have a repayment vehicle in place.

“Thanks to increased property prices, older homeowners with substantial equity in their homes can look to lifetime mortgages to unlock some of the capital. With rumours of interest rate hikes on the horizon, older homeowners who are approaching retirement are looking for a financial product which offers them life-long stability with no surprises further down the line.”