With a lifetime mortgage, you're able to move house in the future if you wish. You can either repay the amount owed plus any early repayment charges, or transfer the plan to your new home. Each provider has specific criteria that applies concerning moving home, so you should check this when you take out a plan.
You have the option to repay your equity release plan early, but you may incur an early repayment charge with a lifetime mortgage. There are some plans available which offer downsizing protection, protecting you from the early repayment charge if you choose to move into a property that is not acceptable to your lender, and therefore repay your loan. This is typically available after five years of having taken out the plan. Please speak to your adviser about this before going ahead, if it is something that you are interested in.
We recommend plans which have this guarantee, so you can stay in your home as long as you wish. This feature applies to both lifetime mortgages and home reversion plans, but is also subject to your adherence to the terms and conditions of the plan.
All advisers at Key follow strict rules and guidelines, ensuring each customer receives the correct recommended plan type and the plan meets their needs, making equity release plans both accessible and safe. As an equity release advisory service, we are also authorised and regulated by the Financial Conduct Authority (FCA). In order to take out an equity release plan you have to take specialist advice - and you will only be advised to continue if equity release is right for you.
With Equity Release Council (ERC) approved plans a number of guarantees are available. These include a no negative equity guarantee, the right to remain in your property for life and the right to move to another property (subject to criteria).
We are also dedicated to making sure that our customers receive all of the facts about equity release - including that equity release will reduce the value of your estate and may affect your entitlement to means-tested benefits.
Yes, but it'll be necessary to repay the outstanding mortgage. The proceeds of the equity release can be used for this purpose.
Unless you choose to take out an interest payment plan, there are typically no monthly repayments to make. This is because the loan, plus roll up interest, is repaid when the plan comes to an end, usually when you (and any other applicant) either pass away or move into long-term care. The total amount owing to the provider will usually be paid from the sale of your home.
Our independent, specialist advisers search the whole market to find the right equity release plan for you. They’ll explain all the options available and that taking a plan reduces the value of your estate and may affect any means-tested benefits you’re eligible for.
You have to get specialist advice before releasing equity; it’s the only way to do it. The initial consultation is free with no obligation to proceed. If you decide to go ahead with an equity release plan our advice fee, usually 1.99% of the amount released, subject to a minimum of £1,499, is payable only on completion.
With a lifetime mortgage, the most popular form of equity release, you’ll still own your home. As with any kind of mortgage, it’s a loan secured against your home. All equity release plans we recommend have a no negative equity guarantee, which means you’ll never owe more than the value of your home.
If you're considering equity release we recommend that you read through is equity release right for you?