There has been an increase in the number of UK homeowners who are opting for drawdown lifetime mortgages, it has been suggested.

Mark Gettinby, director of financial services company intune, said that there has been a boom in the uptake of this type of mortgage – a loan which allows people to decide on the maximum amount of equity they would like to release and drawdown the cash in stages.

According to Mr Gettinby, this type of mortgage "gives clients the peace of mind of knowing that they have funds available as and when they need them".

He added that there were a number of reasons why homeowners are choosing dropdown products but that it was mainly to supplement their income or fund one-off purchases.

Some also release the equity to pay off exiting debt such as mortgage repayments or credit cards.

Equity release plans are usually most beneficial to those aged 55 or over, Mr Gettinby explained, adding that there is a "lack of understanding of equity release with the general public".