Pensioners hit by the rising cost of living have been urged to consider buying an equity release product to provide extra funds.

Rudy Khaitan, managing partner of Senior Capital, told Express.co.uk there are several advantages for older homeowners who choose to release part of the equity from their property.

He said: "The right equity release mortgage product, particularly those that offer the greatest flexibility through limited prepayment penalties, can be the better option vs a more traditional mortgage when you want to unlock the value in your home without taking on additional monthly repayments.

“It allows homeowners to access the equity built up in their property, providing a tax-free lump sum to supplement regular income, whilst still retaining ownership and the right to live in their home for life or until they move into long-term care.”

He said the income option can be especially “advantageous” for people who have retired or who have a limited income.

He explained: “It offers financial flexibility and stability without the burden of servicing higher mortgage repayments.”

Millions of pensioners are struggling to cover their rising bills with the limited income they have from their pensions and savings.

Figures from Age UK show 22 percent of pensioners have reduced or stopped buying medication while 15 percent are skipping meals.

The latest inflation figures released today show rising prices continue to squeeze the budgets of Britons of all ages.

CPI inflation fell to 6.8 percent year-on-year to July down from 7.9 percent in June. Food inflation remains particularly high at 14.8 percent.

James Longley, managing director at Utility Bidder, warned “there is no sign of prices going down on the shelves anytime soon”.

He said: “The UK economy grew by a marginal amount of 0.2 percent between April and June, but recession threats still loom large.

“For those UK residents planning ahead for another hard autumn and winter, you need to be reducing your outgoings and tightening your belts when it comes to the weekly shop and treats, and build your earnings for the long term.”

Some 100,000 retirees have chosen to go back to work in the past year to cover rising bills.

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