A new equity release product has been launched every 28 hours so far in 2020, according to new research.

There are now 525 whole of market plan options on the equity release market, an increase of 510% from 2017, according to equity release specialist Key.

The number of options has increased from 315 at the end of 2019 to 525 at the end of August 2020. This equates to 210 new products launched in 244 days.

The research also found that there has been a decrease in the average interest rate. Interest rates were 4.6% in June 2019 and fell to 4.05% in August 2020, a fall of 12%.

The number of plans allowing interest payments has grown from 81 at the end of October 2019, when the research was last undertaken, to 186 in August 2020. 

The number of drawdown plans also increased with 294 plans now offering it in comparison with just 90 in October last year. 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."