LV= believes equity release will become a mainstream financial product in the next few years.

The firm questioned almost 120 advisers at its recent roadshows who were new to the equity release market.

Some 86 per cent of advisers said they saw equity release as being a significant growth area for their business.

Over half of advisers said they had already seen an increase in the number of clients seeking these products.

The most common reason for this was that clients needed to cover their pension shortfall. Other reasons were to pay off the mortgage and to fund long-term care.

A third of advisers admitted it was their own lack of understanding that stopped them advising clients on equity release business.

Vanessa Owen, LV= head of equity release, said: “What advisers have told us indicates a shift in the view of equity release being a product typically used to fund luxuries such as holidays and conservatories to one increasingly needed to help cover the day-to-day cost of living.

“With more people reaching retirement with an income that falls short of their expectations, equity release products look set to play an increasingly important role in funding retirement.”

However, she said there still remained misconceptions about equity release among advisers and clients which the industry needed to work on.