What to expect from this guide?
At Key Equity Release
, we understand it is a big commitment to release equity from your property. Our free equity release calculator can help you to find out how much money you could release.
In this guide, we will take you through the following and more:
- How to use our equity release calculator
- Equity release interest rates and repayment options
- Do you qualify for equity release?
- The differences between equity release plans
- How to release equity from your property
We have also developed our useful Jargon Buster
to help you understand the more complicated, specific terms in this guide.
How do I use the equity release calculator?
We have designed our free equity release calculator to be quick and easy to use. To use the equity release calculator, follow the below steps:
- Head to our free equity release calculator
- Fill out the required details such as your personal details and information about your property
- Press the calculate button
- You will then be redirected to your equity release quote, with your personalised Key estimate
Our equity release calculator stores no personal details, and if you opt out, we won’t contact you after you use it. If you have any concerns about using the equity release calculator, you can contact our team
directly or request a callback
to discuss your equity release options.
Your Key Equity Release quote explained
When you receive your personalised Key Equity Release quote, it will guide you through the potential funds, equity release interest rates and options available. This is based on the information you provided in the equity release calculator. Your estimate will provide you with the following:
- The minimum and maximum amounts of equity you could release with a Key plan
- How much it will cost you, with Key versus competitor averages. This will include advice fee and legal cost quotes based on your equity release amount
- An estimated equity release interest rate you might be offered – this could vary depending on your specific circumstances if you decide to proceed with your application
- Sliding scales to work out how much your equity could be at the end of your loan term, depending on how much equity you release
- A property eligibility assessment as an optional next step, to help you understand if your property could be eligible for equity release
- Popular equity release options to consider
Finally, you will be able to download your estimate as a PDF document to read at your leisure.
Do I qualify for equity release?
To qualify for an equity release plan, you must meet certain requirements such as:
Get in touch
- Be aged 55 or over
- You must own a property in the UK that is your main residence
- Your property must meet a minimum valuation of £70,000 and be in reasonable condition
with our expert advisers today to find out if you qualify or take a look via the eligibility checker on our results page.
What are the different equity release plans at Key?
Key Equity Release offer lifetime mortgages only, which is a loan secured against your home. With a lifetime mortgage, the most popular type of equity release, you could release tax free funds. We offer two different options of lifetime mortgage equity release plans at Key.
The two types of lifetime mortgage we offer are:
Lump sum lifetime mortgage
With a lifetime mortgage
you could release tax-free funds tied up in your home as a single lump sum, secured against the value of your property.
With a lifetime mortgage there are typically no monthly repayments to make, as the loan plus roll up interest is repaid when you or the last remaining applicant passes away or moves into long term care.
Drawdown lifetime mortgage
If you would prefer to receive regular payments from your equity release plan, a drawdown lifetime mortgage
might be a better option. This type of lifetime equity release mortgage allows you to take an initial lump sum followed by further amounts as needed in the future. You only accrue interest on the amount of funds released, which could save you money in the long run.
Just like a lump sum lifetime mortgage, there are typically no monthly repayments to make, as the loan plus roll up interest is repaid when you or the last remaining applicant passes away or moves into long term care.
For more information about our equity release plans and how we could help you release funds from your property, download our free equity release guide
You're in safe hands
All our plans meet the Equity Release Council
standards. With our plans:
- You have the right to remain in your home for as long as you choose
- You have the freedom to move to another property without an early repayment charge (subject to criteria)
- You will never owe more than the value of your home with the no negative equity guarantee
- Key are authorised and regulated by the Financial Conduct Authority
- Key are proudly rated ‘Excellent’ on Trustpilot by over 16,000 of our customers
Our commitment to help our customers enjoy a better retirement has seen us win a host of awards
Key were named the Best Later Life Broker by Financial Reporter
in 2018 and 2020, while we also received the Best Equity Release Adviser of the Year award from Moneyfacts
How much equity could I release from my property?
There are a few factors that affect how much equity you could release from your property. Once you meet the minimum requirements, our advisers will assess your application to determine how much equity you may be able to release.
Factors we consider include your age, health & lifestyle, and the value of your property. In 2020, Key customers had access to an average equity release amount of £89,028.
Our below table breaks down the average equity release percentage you might be eligible for based on your age when you apply with standard terms.
||Maximum percentage of property value that can be
released (Loan-to-Value) with a standard lifetime mortgage
If you want to get a general idea of how much equity you might be eligible to release from your property, use our equity release calculator as a guide. You can also contact us directly for advice.
What is the cost of equity release?
The total cost of equity release will depend on your unique circumstances and how much equity you release.
However, at Key Equity Release we never charge advice fees. All of our equity release advice relates to our range of Key branded products and is completely free of charge. So, you can find out if it's right for you without it costing you a penny.
Repayment costs will be calculated in line with your equity release plan and interest rate.
What is the interest rate for equity release?
Equity release interest rates will vary depending on the equity release plan you take out.
With Key you could access annual interest rates from as low as 2.75% fixed for life with us. Most Key Equity Release customers have received a fixed annual interest rate of 3.57% or lower. The overall cost for comparison is 3.74% APR.*
*Lowest available rate correct as of 5 July 2021. All other stated rates correct as of 5 July 2021. Interest rate received and plan features are subject to eligibility. Ask for a personal illustration.
How long does it take to release equity from my property?
We make releasing the equity from your home as quick and easy as possible here at Key. Most of our applications are processed and paid out within 8-12 weeks*, provided we need no further information for your application.
* Timescale cannot be guaranteed however this a typical time frame
Our equity release applications generally follow the below process:
- You find out if you're eligible using our equity release calculator
- You then speak to one of our qualified equity release advisers on a date and time that works for you using our callback service
- You will then discuss the legalities with your independently appointed solicitor
- Finally, you receive your money to spend in a variety of ways
How do I release some of the equity from my home?
Once you have used our equity release calculator and you're ready to start an equity release application, talk to one of our advisers
who are on hand to help you with your application.
We can arrange your appointment with our expert equity release team who will discuss your personal situation with you, and consider the options available to you and help you understand which might be the right plan for you.
What are the next steps for releasing equity from my home?
It’s quick and easy to start your equity release application with us. Your specialist equity release adviser will take you through:
- Why you have to get professional equity release advice before releasing tax-free funds from your home. You can read all our information on making sure it’s right for you on our website
- Key Equity Release offer lifetime mortgages only, which is a loan secured against your home. It’s important to note equity release will reduce the value of your estate and may affect your entitlement to means tested benefits
- No matter which plan you choose, 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
Our Key advisers are experienced in providing the right advice, tailored to suit your needs. You can also get in touch by giving us a call on 0808 252 9170
What can I use equity release for?
As a tax-free payment, you can use your equity release funds in a variety of ways. People often use equity release to embark on home and garden renovations projects, clear any existing mortgage or debts, or help support family members with mortgage down payments. You should always think carefully before securing a loan against your home.
Ultimately, what you do with your equity release payment is up to you, but we suggest you consider what it will be used for in advance, so you can be sure you are borrowing the right amount.
Key have helped over 1 million people decide if equity release is right for them and continue to help plenty of customers enjoy a better retirement.
Our customer stories provide examples
of how our honest, free advice has helped thousands of people enjoy a better retirement through equity release.
Will equity release affect my entitlement to means-tested benefits?
Yes, equity release can affect your entitlement to means-tested benefits.
Fortunately, we can help you during your application process, allowing you to decide if equity release is right for you or not.
Compare equity release plans
Choose features to personalise your plan based on what matters most to you.
All of our plans meet the Equity Release Council
standards which means they come with the no negative equity guarantee, so you can’t pass on any debt to your beneficiaries through equity release. Whether you’re looking for low equity release interest rates, high loan amounts or flexible features, there’s a Key plan for you.
Features such as inheritance protection
and downsizing protection
may also be available to you. These additions will help you to create the equity release plan that is tailored to your needs.
Inheritance protection allows you to ring-fence a percentage of your property's future value as a guaranteed inheritance. Downsizing protection allows you to move to a new home that does not meet our lenders criteria and repay the plan without having to pay any early repayment charges as long as the move occurs after a minimum of 5 years from the start date of the loan.
Talk to Key Equity Release today
Hopefully, you have found our equity release calculator and guide helpful. We understand equity release can feel complicated and we want to help our customers understand their options.
If you have any further questions, feel free to contact our team today. We’re here to help you via email or phone on 0808 252 9170
. Lines are open Monday–Friday from 9am–5:30pm and
Saturday from 9am-5pm.