Equity release has been named as one of the options available to those who are struggling to cope financially at the moment as a result of high inflation and low interest rates.

Paul Rumbold, an independent financial adviser at Wayne Austin IFA, stated the financial product is relatively under-used at the present time.

However, he warned those considering equity release schemes not to go into the decision lightly, as it is a major step for them to take.

Mr Rumbold said: "It is always something that is there if they are cash-poor and equity-rich. Then they can alleviate that situation by releasing money and using that to provide a higher income."

Figures released earlier in the week by the Office for National Statistics show inflation dropped to five per cent from 5.2 per cent during October, but this remains well above the target.

Interest rates have been held at 0.5 per cent - a record low for the UK - since March 2009, putting pressure on older homeowners with savings.