Equity release overview
It's safe
Equity release is fully regulated by the Financial Conduct Authority (FCA) - all of our plans meet the Equity Release Council standards, offering additional protection.
Family matters
Equity release plans meet the Equity Release Council standards to protect your loved ones from negative equity. Your adviser can personalise your equity release plan to guarantee an inheritance if you require this.
You need advice
Equity release is a big financial decision. The only way to be sure that it's right for you is to speak to an equity release adviser. In fact, it’s a regulatory requirement set out by the FCA. Our fully-qualified equity release advisers offer free, expert advice. And if equity release isn’t right for you, they’ll tell you.
Arrange advice
All of our advice is free and unique to you, delivered by fully-qualified equity release experts. We're authorised and regulated by the FCA and take the time to get to know you and your needs to ensure we find and recommend the right outcome for you.
What should you consider before going ahead?
Our fully-qualified, specialist equity release advisers take the time to understand your needs, ensuring they find and recommend the right outcome for you. They’ll talk through the options available and explain that taking a plan reduces the value of your estate and may affect any means-tested benefits you’re eligible for.
Your application won’t be considered without specialist equity release advice. We understand that when you’re considering equity release there’s a lot to think about, which is why there's no pressure to proceed and we don’t charge you for our advice.
With a lifetime mortgage, the most popular form of equity release, you’ll still own your home and there are typically no monthly repayments. That’s because it’s a loan secured against your property and repaid when your plan comes to an end. Usually, that’s when you, or the last remaining applicant, either passes away or enters long-term care. You should always think carefully before securing a loan against your home.
All of our equity release plans meet the Equity Release Council standards and come with the no negative equity guarantee. This means you’ll never owe more than the value of your home and any debt you accrue through equity release will never be passed on to your family.
Our expert equity release advisers will also help you to understand how the roll-up or compound interest on a lifetime mortgage adds up. You could access annual interest rates from as low as 2.70% fixed for life with us. Most Key Equity Release customers have received a fixed annual interest rate of 3.92% or lower. The overall cost for comparison is 4.09% APR.*
All of the cash you unlock through equity release is tax-free and you can spend it in a variety of ways.
Equity release may affect your tax position.
* All stated rates correct as of 6 February 2020. Interst rate received and plan features are subject to eligibility. Ask for a personal illustration.
Other options we offer
Aside from lifetime mortgages – the most popular form of equity release – we offer other later-life financial options which may be better suited to you.
Standard mortgages
- Available for everyone aged 18 and over, subject to lending criteria
- Get a mortgage of up to 95% of the property’s value
- Can be capital repayment or interest-only depending on your preference and circumstances
- Tell me more about your mortgages
Retirement interest only mortgages (RIOs)
- A conventional mortgage where your monthly repayments are limited to the interest of the mortgage
- You have to be aged 55 or over to be eligible
- Plan is paid back when you, or the last remaining applicant, either passes away or enters long-term care from the sale of your home
- Find out more about RIOs
Annuities
- Guaranteed, regular income which you buy with your pension savings from an insurance company when you retire
- Income is for life, or longer, depending on your preferences
- Can buy an annuity from any provider, not just the one you saved with
- Read more about annuities
Alternative options
Before going ahead with equity release, make sure you've considered the alternatives
Home reversion
- Type of equity release where you sell all or part of your home to a reversion company for less than market value
- You don’t own your home anymore, but can stay there, rent-free, for life
Asking for financial help
- If your family have the financial means, they may be able to offer you a gift or a loan
- They'll often be all too happy to help you find a solution
Claiming benefits
- Make sure you're getting all the benefits you're entitled to
- Our advisers can help you check what you're entitled to and tell you how releasing equity could affect any means-tested benefits you may already receive
Savings or investments
- If you have enough money saved, you should look to use this first
- Consider whether you'll need it for other things in the future
Downsizing your home
- This can be a good way to free up cash if you're happy to live in a different property
- Remember that moving can be a stressful, costly and time-consuming process
More about equity release
How does it work?
Why equity release?
Could unlocking some of the tax-free cash tied up in your home help you get the things you want out of life?
Your journey
See what’s involved in your typical equity release journey from application to completion, including what we do for you