Remortgaging accounted for almost a fifth of equity release transactions in the first half of 2022, according to Key.

The equity release specialist said that borrowers were looking to switch their deal to take advantage of lower rates and increased product flexibility.

Key estimated that 19% of all equity released – more than £650 million – in the six months to July was by customers switching to new plans.

It’s analysis also revealed that customers remortgaged an average loan of £130,808 from a 5% initial rate to 4.2%, saving them up to £16,000 in interest over 10 years.

Will Hale, CEO at Key, said: “Remortgaging has always been a core part of a specialist equity release adviser’s toolkit with advisers continuing to engage with customers throughout the life of their loan as a matter of course. Today’s figures highlight the benefits that customers can see from reviewing their equity release borrowing.

“House price increases have also contributed to the growth in this market with existing customers realising that remortgaging is not only about reducing rates but could also provide the opportunity to raise additional capital which is particularly relevant for some customers as the cost-of-living crisis hits finances.

“While arguably remortgaging may slow down as rates rise, the increasingly flexible nature of equity release products mean that this trend is likely to continue well into the future and become a feature of this market.”