No monthly repayments
With a lifetime mortgage, you don’t usually have to make any monthly repayments. Instead, the interest with your lifetime mortgage is typically added to the loan - this is known as roll-up or compound interest. Then, the loan plus interest is repaid when the plan comes to an end, which is usually when you, or the last remaining applicant, either passes away or enters long-term care. Typically, your house will then be sold and the equity release provider will take their money from the sale proceeds. The remainder goes to you or your estate.
No negative equity guarantee
All of our plans are approved by the Equity Release Council
. That means they come with several assurances, including the no negative equity guarantee. With it, you’ll never owe more than your home’s worth. So, any debt you accrue through equity release can’t be passed on to your loved ones after you’ve gone.
Protection for the future
With some plans, you can also choose to guarantee an inheritance for your loved ones through inheritance protection. And for your own peace of mind, your adviser can personalise your plan to include downsizing protection, so you can move home in the future if you need to, subject to criteria. It also means that should your new home not meet our criteria, you can repay your plan without any early repayment charges.
Consider what's important to you
It’s important you think about what features you’d like your adviser to include in your lifetime mortgage plan. You can see the features here
. If, for example, you’d like our lowest interest rate available, or to release the highest amount of tax-free cash we can offer from your home, there may be some trade-offs you will have to discuss with your Key Equity Release adviser.
They can guide you through your options, and it’s crucial to note that this won’t affect your entitlement to have no monthly repayments or the no negative equity guarantee – which both come as standard with all of our plans.
Other ways to release money from your home
Aside from lifetime mortgages – the most popular form of equity release – there are other ways to unlock money from your home. Home reversion plans include you selling all or part of your property to a reversion company for less than market value to receive a cash lump sum. You won’t retain legal ownership of your home, but you can remain there rent-free for the rest of your life.
There are other ways you can release money from your home, such as standard or retirement interest-only mortgages. Take a look at your options here
Get your free guide to equity release
We have all the answers you’ll need here on our website; however, you can also request our free, no-obligation equity release guide to read over in your own time. It’ll tell you all about equity release, the different types of plans we offer and what unlocking tax-free cash from your home means for you now and in the future. I want my free guide
See how much you could release
The amount you can release depends on your age, how much your property is worth and your health and lifestyle. If you’re aged 55 and over and own a home worth at least £70,000, use our free equity release calculator
to get a quick idea of how much you could release.