While the number of mortgages is now rising, the number of people taking out equity release mortgages has fallen according to the Bank of England.

Bank of Englands report figures show that in February 85,000 new home loans were taken out, the highest number for five months.

In the last three months of 2004 mortgage equity withdrawal fell to £6.9 billion - down from £11.3 billion the previous quarter and £16.8 billion from the previous year.