Almost a quarter of people taking out an equity release loan did so to clear an outstanding mortgage debt.
However the most popular reason for releasing equity was to fund home improvements with 61% using the product for this purpose.
Other popular reasons include paying down other debts and loans (31%), going on holiday (28%) and treating family and friends (16%).
In the first quarter of the year the number of new plans taken out was 5,110, up 2.5% compared to last year. The total amount released was worth £340m, up 3.1% on the first three months of 2014.
In the past year the average amount of money has grown from £61,232 at the start of last year to £66,735 in 2015.
The number of customers using equity release in London has increased by 40% in the last year. However the number of plans in the North West dropped 28% and in Northern Ireland it is down 24%.
Dean Mirfin, technical director at Key Retirement, said: “Debt in retirement is a growing issue with large numbers of customers using money to clear mortgages as well as credit card debts and loans.
“That highlights a real need for lenders – including equity release providers – to develop solutions to help.”
