later life lending platform Air stresses that total lending through lifetime mortgages is just 8 per cent of total later life lending, at £25 billion

The equity release market is achieving “only a fraction of its potential” despite strong recent growth, later life lending platform Air says.

Equity Release Council data shows total lending rose by 11 per cent last year to £2.57 billion. Its adviser research found 80 per cent expect total lending to continue growing this year and the number of new customers to increase.

However, Air stresses that total lending through lifetime mortgages is just 8 per cent of total later life lending, at £25 billion, despite innovation in the products making them relevant to substantial number of over-55s homeowners.

It says the number of new equity release customers increased by less than 1 per cent last year demonstrating a lack of awareness among customers and advisers who are not later life lending specialists.

Air and Key Advice chief executive Will Hale said: The sector is still performing at a fraction of its potential despite the very welcome growth in total lending last year and the prospect of more to come.

Innovation in lifetime mortgages means they are very much relevant to a growing number of over-55s homeowners and their needs. However, it is clear the lack of awareness among customers and advisers beyond later life lending specialists means they are not being offered lifetime mortgages, he said.

He added: Given customer needs, the £25 billion value of the later life lending market should be higher and the share taken by lifetime mortgages should be higher too. The products are there but mortgage, pension and wealth advisers need to look beyond their silos and offer holistic advice.