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In the guide Which? labels equity release schemes as expensive, inflexible and risky.

Andrea Rozario, director general of Ship, the trade body for equity release providers, said Which? had not taken into consideration the market advancements of the last decade.

She said: "Equity release products offer increasing flexibility – there are now products that offer the security of fixed rates with little or no redemption penalties, and recently we have seen rates falling, in stark comparison to the mainstream mortgage market.

"Equity release is most definitely not an option of last resort but a logical consideration for those considering how to fund their retirement. It offers a guarantee that older people can stay in the homes they know and love, with no monthly rent and a no negative equity guarantee."