Moneyfacts.co.uk found on average, lifetime mortgage rates have tumbled from 7.23% in September 2007 to 6.64% today, as sales of plans have increased.

Richard Eagling, pension expert at Moneyfacts.co.uk said: “The fact that interest rates on equity release lifetime mortgages have been falling steadily is great news not only for homeowners considering equity release for the first time, but also for those who may now be able to switch their existing product to one with a lower interest rate.”

The research also suggests a third (31%) of pensioners used equity release during the first half of this year. This compares to 23% in the same period last year.

Eagling added: “The last few years have seen much greater awareness amongst consumers of the potential of equity release to supplement monthly incomes that have been squeezed by high inflation, falling annuity rates and disappointing pension fund returns.

“Anyone who has taken out an equity release product in the last five years may want to seek professional financial advice as to whether a switch is a realistic option, especially as any early repayment charges or new arrangement fees will need to be considered.”