Lenders are increasing the choice of equity release plans on offer with a record 66 different schemes or variants now available, according to analysis by referral service Key Partnerships.

Competition is being increased, with new lenders such as OneFamily and Legal & General offering specific products from 2.96%.

New plans available include improved loan-to-value offers for customers with lifestyle or health conditions as well as plans enabling customers to pay interest on loans, either regularly or ad hoc, if they want in addition to traditional drawdown and lifetime mortgages.

The expansion of choice has driven different approaches to early redemption charges for customers repaying loans early or moving house – Key Partnerships analysis reveals that there are now 12 early repayment charge structures.

Charges can range from as much as 25% of the original loan for the life of the loan to fees for fixed periods on sliding scales with many providers not charging fees in some circumstances.

Rates now range from as much as 7.27% to as low as 2.96%.

Will Hale, director at Key Partnerships, said: “Increasing competition and choice in the equity release market is a welcome development as continuing demand demonstrates how important property wealth is to meeting customers’ retirement needs.

“The launch of new lenders such as OneFamily and Legal & General expands the choice on offer and increases the need for specialist advice to ensure clients achieve the best possible outcomes.

“Advisers who do not regularly work in the equity release market will struggle to keep up to date with the pace of change. Working with a specialist referral service removes all the regulatory and compliance worries while enabling them to maintain a valuable client relationship.”