TENS of thousands of pensioners are expected to borrow against the value of their homes over the next three years to help make ends meet, a new report reveals on February 1.

Around 100,000 pensioners released equity in their homes worth £3.96 billion over the past 12 months.

That figure is set to rise over coming years as more retired people struggle to cope financially, according to research from Bristol Business School. It predicts that around 152,000 retired homeowners will release £9.3 billion over the next three years with another 752,000 yet to decide how much to release.

The research, commissioned by retirement housing and finance specialists Economic Lifestyle, claims the financial services industry is failing retired people by making it difficult to release some of the estimated £1 trillion of capital from their homes.

Another 1.1 million pensioners would tap into the wealth tied up in their homes if the process were more straightforward, the report claims.

Professor Merlin Stone said: "The schemes currently on offer are not flexible enough to meet the pent-up demand.

"The industry needs a wake-up call as there is vast untapped potential out there," he added.

Economic Lifestyle's Mark Neal said: "There is a need for innovative solutions to the financial problems many retired people face.

"Around 14,000 people in this age group owe more than £10,000 on credit cards and 23,000 have personal loans of £20,000 or more."