The latest statistics from Key Retirement Solutions have revealed that the amount of interest in equity release loans has grown in both number and amount in the past three months of this year.

The total number of plans taken out during the third quarter of 2009 was 6,123 (2009 quarter two – 5,143, quarter one – 4,703,) representing an increase of 19% over quarter two, which itself exceeded quarter one by 9%.

The total amount released also increased by 13% over the same period, with a total amount of £214 million being offered as new loans.

The largest growth area for equity release loans has been that of debt consolidation, as many individuals use the plans to repay their outstanding personal loans, credit cards and remaining home owner loans and mortgages.

Dean Mirfin, Key Retirement Solutions group director, said: "The continued growth in the number and value of plans throughout 2009 is very encouraging. Pensioners are hard hit by the current climate, experiencing higher rates of inflation and previously unknown low levels of returns on their savings, as a result equity release is providing a strong support for those who want to maintain a good quality of life in retirement. We expect the last quarter of the year to be equally strong as more confidence emerges."

"While a number of providers have temporarily had a break from the market of late we expect that a number will soon return, stronger and wiser. The demand for greater income or capital in retirement is continuing to grow and as a result equity release has to be a serious consideration for anyone who wishes to boost their provision in, or approaching, their retirement."

This is to be noted that Equity loans have seen a steady increase in numbers since the beginning of this year.