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Am I eligible?
When considering equity release, it's natural to have questions like, "Is equity release safe?".
Watch our video to find out about the safeguards and protections Key lifetime mortgages come with.
You can also read our guide below for more information to help make a decision that's right for you.
What is equity release?
Equity release is a way for homeowners aged 55+ with a property valued at a minimum of £70,000 to release some of the tax-free funds from their home.
Equity release can play an important role in helping you take control of your later life finances.
There are two types of equity release: lifetime mortgages, and home reversions. All our equity release advice relates to Key lifetime mortgages only - a loan secured against your home.
There are two types of equity release: lifetime mortgages, and home reversions. All our equity release advice relates to Key lifetime mortgages only - a loan secured against your home.
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.
Key - equity release that’s right for you.
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.
Key - equity release that’s right for you.
Equity release benefits
Your specialist equity release adviser will explain:
Potential drawbacks
Your equity release adviser will also outline the following important things to think about:
How safe is equity release?
When considering equity release, it's natural to have concerns about its safety. Equity release products come with a range of safeguards and protections and are fully regulated. However, it's crucial to thoroughly research and seek professional advice before proceeding with any equity release product to ensure it suits your specific needs and circumstances.
Our plans meet the Equity Release Council standards
All of our lifetime mortgages meet the Equity Release Council standards, meaning you'll:
It's important to note that a lifetime mortgage may leave limited or no equity in your property and it will reduce your financial options in the future.
Back to "What's in this guide?"
What is the Equity Release Council?
The Equity Release Council was founded in 1991. It's a trade body which represents its members to ensure high standards of conduct within the equity release market.
The Equity Release Council's code of conduct is designed to protect consumers in some of the following ways:
It's important to note that not all equity release providers are Equity Release Council members. You can find a list of all members, which includes Key, on its website.
Your expert equity release adviser will make sure you clearly understand every stage of the process, how each product works and how they could impact the financial future of you and your family. However, you should always think carefully before securing a loan against your property.
Your equity release adviser will get to know you and your financial circumstances. They'll discuss specific product features which may benefit you, including:
Other product options to consider
You have two options when it comes to a lifetime mortgage, which are based on how you need to access your tax-free funds. This helps you control and manage the interest you'll repay on the loan. You can choose between a lump sum lifetime mortage and a drawdown lifetime mortgage.
A lump sum lifetime mortgage allows you to unlock tax-free funds from your home in a single lump sum. You can use the money you release for a variety of purposes, but you'll pay interest on the full amount from the moment you release your funds.
Drawdown plans are a specific type of lifetime mortgage. They give you the option of setting aside a sum of money to draw from in the future following an initial lump sum, should you need to. These plans can be used to reduce the overall cost of your equity release plan, as you only pay interest on the amount you release, and give you more flexibility - this could potentially save you thousands over the course of your lifetime mortgage.
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.
We're regulated experts
Key is regulated and a proud member of the Equity Release Council
Trusted award-winners
We've won 80+ awards and 17,000+ excellent Trustpilot reviews, making us the UK's most trusted equity-release specialist
Customer stories
ⓘ Did you know...
Over the years, more than a million customers have benefitted from our expert advice, experience and professionalism from Key. We've been rated 'Excellent' on Trustpilot and you can check out the great things our customers have to say about our equity release plans.
Rest assured, you’ll be in safe hands. We’re dedicated to giving you all the information needed so you can make an informed decision, in your own time. We’re here to help you via email or phone on 0808 252 9170. Lines open 9am-8pm Monday-Thursday, 9am-5:30pm Friday and 9am-5pm Saturday.
Our calculator can help you find out if equity release could be the right option for you. It'll give you an idea of how much you could release and let's you check if your property could be eligible for a Key lifetime mortgage.
Calculate now
Back to "What's in this guide?"
Our calculator can help you find out if equity release could be the right option for you. It'll give you an idea of how much you could release and let's you check if your property could be eligible for a Key lifetime mortgage.
Back to "What's in this guide?"
If you're wondering whether releasing equity is a good idea, it's important to carefully consider the potential benefits and drawbacks. Releasing equity allows you to tap into the value of your property and access a significant amount of money that would otherwise remain tied up.
The additional funds you receive could be used in a variety of ways, such as home improvements, paying off existing debt, or boosting your retirement funds. Equity release could also give you flexibility, allowing you to choose between a lump sum or regular withdrawals, whichever suits your situation. One advantage is that there are typically no monthly repayments involved.
It's essential to research and seek professional advice to fully understand the implications and costs associated with releasing equity before making a decision.
One common question is whether you have to pay tax on equity release. In general, releasing equity from your home is tax-free, as it is not considered income. The lump sum or regular payments you receive are not subject to income tax. However, it's important to note that using the released funds for investment purposes may attract tax liabilities.
Additionally, releasing equity could impact means-tested benefits or any entitlements you currently receive. To gain an understanding of the tax implications specific to your situation, it is recommended to consult with a qualified tax adviser who can provide tailored advice based on your individual circumstances.
More about equity release
You're in safe hands
- All of our plans meet the Equity Release Council standards
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You have the right to remain in your home for as long as you choose
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You can move to another property without early repayment charges (subject to criteria)
Page last updated: Tuesday 17 October 2023