Vast changes to the reverse mortgage market in tandem with the recent NCCP introduction is leaving a large pool of older borrowers without access to funds.

Seniors First managing director Darren Moffatt said that since the global financial crisis, reverse mortgage lender numbers have contracted drastically, down from 21 prior to the crisis, to four major lenders at present, including St. George, CBA and Bankwest.

Moffatt said while the previous minimum age for equity release was 55, it has now also increased to 63, but mostly 65.

"The sector has really felt the brunt of the GFC; equity release requires capital to be tied up for a long time, so when capital became scarce, the sector was the first to feel the result of that," Moffatt said.

The result is that the expectations of many older borrowers for access to equity in their properties is often not being met, Moffatt said.

"I have literally had quite a few potential borrowers on the phone, and when they have found out they can't get money like they used to be able to - they can't release equity - they are really angry," he said.

The NCCP is only compounding the problem for 55-65-year-old borrowers.

"The NCCP is definitely causing lenders to be very, very careful or reluctant to lend to people in their late 50s to early 60s with forward mortgages; if they don't have an exit strategy - for example a large super fund, or a second property - it can be difficult for these borrowers to get funds," Moffatt said.

"The point is, this very significant change across the industry has happened, and is affecting a huge amount of people that have no idea that the change has occurred," he said.

Moffatt argues the result is a "massive market opportunity" for banks and other lenders in the pre-retiree space, due to huge demand for access to existing equity as the community ages.