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When considering equity release, it's natural to have questions like, "Is equity release right for me?".
Watch our video to find out more about equity release and how it works.
You can also read our guide below for more information to help make a decision that's right for you.
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. The two types of equity release are a lifetime mortgage or home reversion plan. All our equity release advice relates to Key lifetime mortgages only - a loan secured against your home.
Our fully-qualified, specialist equity release advisers take the time to understand your needs, ensuring they find and recommend the right outcome for you. 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.
Lifetime mortgage benefits
Your specialist equity release adviser will explain:
Potential drawbacks
Your equity release adviser will also outline the following important things to think about:
You should also consider the impact of house prices
If you’re considering equity release, it’s important to consider the value of your home now and in the future, as it will affect any potential inheritance you want to pass on.
Property values have gone up
Over the last few decades, average UK house prices have risen steeply; more than doubling in the last 20 years. If you take a lifetime mortgage and house prices continue to rise, you may build up more equity to leave to your loved ones, as the plan continues over time. Please remember that compound interest will continue to accrue over the term of the plan.
But they may also go down
However, it’s also important to understand that house prices may fall during the life of your plan, which would reduce the amount of inheritance remaining. But with a lifetime mortgage from Key, you can never owe more than your home’s worth or pass on any equity release related debt to your loved ones as all plans come with the no negative equity guarantee.
ⓘ Did you know...
This example assumes an annual fixed interest rate of 6.74% and house price inflation of 1%. Please note that these are only examples and the value of your house could go down or not increase at the same rate. Lifetime mortgage amount and property value are based on the average values in Q1 Market Monitor 2023.
| - | When you take your plan | After 15 years with interest |
|---|---|---|
| Property value | £363,319 | £421,802 |
| Lifetime mortgage balance | £81,703 | £223,914 |
| Remaining equity | £281,616 | £197,888 |
At Key, we understand that equity release isn’t suitable for everyone. That’s why we’ll always be honest and tell you if we don’t believe a lifetime mortgage is the right option for you.
To help, we’ve highlighted a selection of scenarios below where equity release could be the right solution for your needs, and when it’s not. Your specialist Key equity release adviser will work with you to determine whether a lifetime mortgage is right for you during your initial appointment.
✓ Examples of when equity release could be the right solution
✖ Examples of when equity release isn't a solution
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.
If you're thinking about releasing equity from your home, it's important to find out if you're eligible.
You can check this by using our free online calculator.
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+
ⓘ Did you know...
If you're not eligible now, why not try our later life mortgage finder? It may be that we can still help you take control of your later life finances.
Before going ahead with equity release, make you sure you've considered your alternative options.
ⓘ Did you know...
You could also 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.
Other options from Key
Aside from lifetime mortgages, we offer other later-life financial options which may be better suited to you.
It's a regulatory requirement for anyone considering equity release to get specialist advice before taking out a plan. So why should you choose Key as your equity release company?
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.
Things to consider
- You should always think carefully before securing a loan against your home to repay existing debt
- The loan, plus compound interest, is typically repaid through the sale of the property when the last remaining applicant passes away or moves into long-term care
- Our fixed advice fee of £1,299 is only payable on completion
Page last updated: Tuesday 11 July 2023