By comparing products before settling, pensioners could save up to £57,000 on their final repayment total, according to financial comparison and advice site MoneyExpert.com.
APR charges can range from 5.7 per cent for the cheapest products up to around 8.9 per cent for some of the most expensive.
A lifetime mortgage enables a homeowner to borrow a set amount of money against the value of their house, while retaining ownership of the property. The full repayment, the total of the amount borrowed plus interest payments, is payable when the holder dies.
"For an increasing number of pensioners, equity release schemes are an important means of raising cash for a more comfortable retirement," said Sean Gardner, chief executive of MoneyExpert.com.
"As the market matures, more consumers will research the pros and cons of equity release and it stands to reason that they should be able to do some initial digging themselves.
"People need to know just how much they risk losing if they don't research the market properly," Mr Gardner added, noting that with the various complexities of the products on offer, "choosing the right scheme [is] a difficult task".To read more about pensions, click here.
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