What are the benefits of lifetime mortgages?

With a lifetime mortgage, there are a number of benefits. Instead of making any monthly repayments, the interest accrued on your lifetime mortgage is added to the loan and rolled up. This is commonly known as roll-up or compound interest. The loan plus interest is then repaid when the plan comes to an end, which is usually when you, or the last remaining borrower, either passes away or enters long-term care. Typically once this has happened, your house will then need to be sold and the equity release mortgage provider will take their money from the sale proceeds. Any remaining money will then go to you or your estate.>

Is equity release safe?

Many of our customers ask “is equity release safe?”. Regulation under the Financial Conduct Authority (FCA), whose main role is to protect customers and enhance the financial market’s integrity, means that equity release is safe for those who wish to explore this as an option. We’ re authorised and regulated by the FCA, and pride ourselves on the fact that all our processes and recommendations are clear, fair and not misleading to customers in any way.

How much could I release?

The amount of equity you could release is based on your age, general health and lifestyle choices, and the value of your property. In 2019, Key customers had access to an average facility of £90,374. The amount is subject to a number of factors, so why not use our calculator to get an idea of how much you could borrow.

How much does equity release cost?

All of our equity release advice relates to our range of Key branded products and is completely free of charge. So, you can speak to a member of our experienced team and find out if it's right for you without it costing you a penny. Most Key Equity Release customers have received a fixed annual interest rate of 3.67 % or lower. The overall cost for comparison is 3.85 % APR.** Now you could access annual interest rates from as low as 2.44 % , fixed for life with us. Lowest available rate correct as of 1 February 2021. All other stated rates are correct as of 1 February 2021. Interest rate received and plan features are subject to eligibility. Ask for a personalised illustration.

Ready to see if equity release is right for you?

With more than 20 years’ experience, Key has helped over 1 million people decide if equity release is right for them. So, you can be confident we’ll find and recommend the most suitable plan for you. We’ re one of the UK’ s trusted equity release specialists. Our equity release advice is unique to you, delivered by qualified equity release experts, who will take the time to understand your needs. They’ ll search our product range to ensure they recommend the right plan for you and support you every step of the way. We’ ll ensure you consider your options, including downsizing or using other forms of borrowing, and if releasing equity from your house isn’ t right for you, we’ ll tell you. There’ s no pressure to go ahead. Your adviser will give you all the information you need about equity release for you to make an informed decision in your own time. Releasing some of the equity from your home is simple with Key. Usually taking around 8 - 12 weeks * , you can get started in these steps: Find out if you 're eligible - calculate here to find out Speak to a qualified equity release adviser on a date and time that works for you - arrange your call back here Talk to a solicitor Receive your money and spend in a variety of ways *Timescale cannot be guaranteed however this a typical time frame.

Equity release

Q: How does equity release work?

Key offer a couple of ways that you can release equity from your house which are discussed further below. It’s important to think about what features you’d like your adviser to include in your equity release plan. If, for example, you’d like our lowest interest rate available, or to release the highest amount of tax-free funds we could offer from your home, you can discuss this with your Key Equity Release adviser. They’ll be there to guide you through the different features, and it’s crucial to note that this won’t affect your entitlement to make no monthly repayments or the no negative equity guarantee – which both come as standard with all of our plans. We’ve made wondering “how does equity release work?” a thing of the past. You can release some of the tax-free funds from your home through Key Equity Release with a lifetime mortgage, the most popular form of equity release. A lump sum lifetime mortgage is essentially a loan that’s secured against your home, giving you access to a single lump sum of funds and you’ll still own your property. A similar product that is available is a drawdown lifetime mortgage. Unlike a lump sum lifetime mortgage that gives you a one off lump sum, this product allows you to draw funds out in stages after taking an initial lump sum. Plus, you’ll only ever pay interest on the money that’s released. In the same way a lump sum lifetime mortgage works, a drawdown lifetime mortgage is also a loan that’s secured against your home and you’ll still own your property.

Q: What are the different types of lifetime mortgages?

With two options available to you, it can be difficult to find the right one. Here, we’ve broken down each of our products for you, but your expert equity release adviser will be able to talk you through them in more detail to help you decide. You can release tax-free funds from your home with a lifetime mortgage, which is the most popular form of equity release. There are two types of lifetime mortgages: A lump sum lifetime mortgage and a drawdown lifetime mortgage.

Equity release allows you to unlock some of the tax-free funds from the value of your home so you can take control of your later life finances. Key, for the life in later life.

Watch to learn more

Am I eligible?

UK homeowners are eligible if:

Youngest homeowner aged 55+
With a property value of £70,000+

Calculate now

Transcript

When it comes to equity release, we all have questions.

What, for instance, is it exactly?
Equity release is a way for homeowners over 55, whose property is worth at least £70,000, to release tax-free cash from their homes. It is an increasingly popular way for people in, or approaching, retirement to boost their finances.

And will we still own our home?
Yes – and with Key’s plans you can stay in it for as long as you like.

Will we have to make monthly repayments?
No, not unless you want to. The loan, plus rolled-up interest, will be paid back when your plan comes to an end.

Could our family inherit the debt?
No – all of Key's plans come with a ‘no negative equity’ guarantee, so you’ll never owe more than your home is worth and there’ll never be a debt for your family to take on.

How much can we release?
This depends on your age, how much your house is worth and your general health. On average, Key customers have had access to £90,000.

What do people usually use the money for?
Key customers spend the tax-free cash on many different things, such as repaying existing debts, travel and home improvements.

So, what’s different about Key?
Because Key takes a personal and honest approach to equity release, it's good to know we can answer all your questions in a way that's right for you. By ordering our free expert guide, using our free online calculator, or by calling us.

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What is equity release?

Equity release is a way for homeowners aged 55 or over whose property is worth at least £70,000 to release some of the tax-free funds from their home without having to sell up or move. It can play an important role in helping you to take control of your later life finances, and the safeguards that are built into our plans allow you to tap safely into some of your property wealth without having to worry about making monthly repayments if you don’t want to.

The money you unlock through equity release is all tax-free and can be spent in a variety of ways. So, whether it’s repaying your existing mortgage, supporting your loved ones when they need it most or simply boosting your retirement finances, equity release could help you live the later life you want.

See how much you could release from your property with our quick and easy calculator.

Calculate now

How does equity release work?

At Key Later Life Finance, we offer lifetime mortgages only which is the most popular type of equity release. It's a loan secured against your home and allows you to access some of the funds locked in your property's value, which you release tax-free.

Typically no monthly repayments: With a lifetime mortgage there are typically no monthly repayments to make as the loan, plus roll up interest, is repaid when the plan comes to an end
Guaranteed inheritance: Some of our plans allow you to guarantee an inheritance for loved ones with inheritance protection
Always own your home: With all our plans, you'll still own your home and can stay living there as long as you'd like

When does an equity release plan end?

A plan will normally end when you or the last remaining applicant pass away or move into long-term care. At the end of a plan, your home is typically sold – with the loan and rolled up interest repaid using the proceeds, any remaining funds are passed to your estate.

You can rest assured that none of our plans will see you owe more than your home is worth – so there's no risk of passing on any equity release-related debt to your loved ones.

Is a lifetime mortgage safe?

It isn't risk-free, but Key allows you to personalise your features and protections to make sure that you get an equity release plan that's right for you. You can also choose how you receive your funds.

By doing so, you can unlock thousands of pounds, tax-free – and help to fund what's important to you in later life. At the same time, you'll still retain full ownership of your property.

Equity release costs to consider

The cost of your equity release plan will vary because there are a few factors to consider. That includes how much you wish to release, how you choose to personalise your plan, how old you are, how long your plan lasts, and your interest rate.

Similar to a regular mortgage, there are also other costs to think about too – such as surveyor's, solicitor's and advice fees.

More on how much equity release costs

Key offers low fixed rates for life

Our lifetime mortgages have annual interest rates from as low as 4.23% fixed for life and most customers have received a fixed annual interest rate of 3.77% or lower. The overall cost for comparison is 3.96% APR.

*Lowest available rate correct as of 22 June 2022. All other stated rates correct as of 9 June 2022. Interest rate received and plan features are subject to eligibility. Ask for a personalised illustration.

Is equity release right for you?

Equity release helps thousands of homeowners across the UK take control of their finances, so that they can live the later life that they deserve. Explore how Key could help you put the life in later life – request your free, comprehensive guide today.

Download now

What are the different types of lifetime mortgages?

Lump sum lifetime mortgage

Unlock tax-free funds from your home in one single lump sum

Available for homeowners aged 55 or over
You retain full ownership of your home
Use the money you release for a variety of purposes – including repaying an existing mortgage or helping loved ones

Drawdown lifetime mortgage

Release your funds in smaller amounts after an initial lump sum

Same qualifying criteria as a lump sum lifetime mortgage
Keep some of your available funds for when you need them
Interest is only charged on what you release, so could potentially save you thousands over the course of your lifetime mortgage

Why choose Key?

Equity release is regulated by the Financial Conduct Authority (FCA) and it's an FCA requirement for anyone considering equity release to get specialist advice before taking out a plan. So why should you choose Key?

Highly experienced

We have more than 20 years' experience helping over 55s with tailored financial advice on a range of later life products. Our knowledge means that once we've taken the time to understand your needs, we’ll have a sound idea of what the right plan is for you.

Low fixed fee

Our fixed advice fee of £599 is only payable on completion. All our equity release advice relates to our range of Key branded products only.

Regulated experts

We're authorised and regulated by the Financial Conduct Authority and we're proud members of the Equity Release Council.

Am I eligible for equity release?

Before you start your equity release journey, it's important to find out if you're eligible, which you can check through our calculator. To be eligible to take out a lifetime mortgage with Key, you must be a UK homeowner:

Aged 55+ (including all joint applicants)
With a property worth £70,000+

Calculate now

If you're not eligible right now, try our later life mortgage finder as we may still be able to help you take control of your later life finances.

Benefits and things to consider

✓ The benefits

You own your home and can move in the future (subject to lender's criteria)
Typically no monthly repayments
You can protect an inheritance with some plans
All of our plans meet the Equity Release Council standards and come with several protections, including the no negative equity guarantee, which means you’ll never owe more than your home’s value

ⓘ Things to consider

You have to get equity release advice before releasing tax-free funds from your home - please read all our information and make sure it's right for you
Key offer lifetime mortgages only, which is a loan secured against your home - it will reduce the value of your estate and may affect your entitlement to means-tested benefits
You should always think carefully before securing a loan against your home

How to release equity from your home

Use our free calculator

Find out how much cash you could release tax-free from your home with our equity release calculator

Use our calculator

Speak to an adviser

Book an appointment with a specialist equity release adviser at a time that's good for you

Book now

Unsure of your options?

Our later life mortgage finder helps you consider your options

Take me there

Got an equity release plan?

See if you could release more cash with your current plan or whether switching to a different plan may suit your needs better. Your adviser will look at any early repayment charges you may need to consider.

Existing Key customer

Call us on 0800 123 1234 to talk about your plan

Switch to Key

Call us on 0800 123 1234 to switch to Key

Lines open 9am-8pm Monday-Thursday, 9am-5.30pm Friday and 9am-2pm Saturday

What our customers are saying

Our sincere thanks to Joseph Nield for giving us his expert advice and in guiding us through the processes for the production of our Wills & LPA’s. No stone left unturned and all questions answered professionally and in a timely fashion. David & Judith Elkins.

David

I was so apprehensive about the equity release Which my 2 sons recommended, because at retirement age I was working for the debt, we are now debt free, and looking forward to my retirement, many thanks to Tom Gledhill he was so professional and a gem to work with, thanks Tom and thanks Key

Mr Maddison

Everyone was very helpful.

Keith Stanley Lillington

Very helpful, everything went smoothly with no stress. Now we can enjoy our retirement.

MRS W STOCKWELL

Couldn't be happier with Key a smooth process all the way through and Steve Francis very good and advised us about what we wanted

les collingbourneCustomer

Equity release FAQs

Any decision to release equity from your home is a big one. We know that you may still have some burning questions too. So, here are the answers to the queries we get asked the most. Still can't find the information you’re looking for? We're only a phone call away.

How long does an equity release application take?

The process usually takes around 8-12 weeks from applying to unlocking your tax-free funds. Please note: this is only indicative. Timescales can't be guaranteed.

How much equity can I release from my property?

The amount of equity that you could release is based on your age, general health and lifestyle choices. It's also based on the value of your property. On average, homeowners across the UK released more than *£123,000 from their properties through a lifetime mortgage in 2021. Some points to consider:

You'll need to release a minimum of £10,000
The older that you or your partner are, the more money you could potentially release based on the age of the youngest applicant

Above all, the amount that you choose to release is always personal to you – so why not use our free calculator and get an idea of how much you could release?

When can I release equity from my home?

If you (and any other joint homeowners) are at least 55 years old, you could release equity from your home – so, when you think the time is right for you, give Key a call and we can let you know what your options are.

How does equity release work when you die?

Unless you move into long-term care, your lifetime mortgage plan usually ends when you or the last remaining applicant pass away. At this point, your home will usually be sold. The proceeds are then used to repay the lender, with anything left over going to your estate.

Is equity release regulated?

Equity release is authorised and regulated by the Financial Conduct Authority (FCA) which aims to make financial markets work well so that consumers get a fair deal. The FCA does this in three ways:

Securing an appropriate degree of protection for consumers
Enhancing the integrity of the UK financial system
Promoting effective competition in the interests of consumers

As an extra safeguard, all of our equity release advisers hold specialist qualifications. We're also an Equity Release Council (ERC) member and only recommend plans that meet ERC standards.