Lifetime mortgages

The amount you could release depends on things such as your age, health and the value of your home. With lifetime mortgages, you can take either a lump sum, where interest accrues on the full amount from day one, or following an initial release in a number of smaller amounts, known as a drawdown. This could save you thousands in interest if you don’t need all the money straight away. A member of our experienced team will be able to chat you through your options.

There are typically no repayments to make with a lifetime mortgage, as the loan, plus roll-up interest, is repaid when the plan ends. That's usually when you either pass away or move into long-term care. When you take out a lifetime mortgage, the interest accrues, then rolls up and is added to the loan. This is also known as compound interest. The tax-free funds you release through lifetime mortgages can be used in a variety of ways – see how our customers used theirs.

Your adviser can tailor and completely personalise your plan to make it suitable for your needs and wants – all depending on what’s important to you. For instance, with some of our plans, you can choose to guarantee an inheritance for your loved ones through inheritance protection. Find out more about this feature and leaving an inheritance.

Other features include the option to make capital repayments to reduce the overall cost of your plan, subject to criteria. And for added peace of mind, on some plans we can personalise your plan with downsizing protection so you can move home in the future if you need to. That usually comes into effect after you’ve had the plan for five years and if your new property doesn’t meet our criteria at the time, you can repay your plan without an early repayment charge.

As with any mortgage, what remains from the sale of your property after your plan has come to an end can be passed on as an inheritance. And because all of our plans meet the Equity Release Council standards, they all come with the no negative equity guarantee. That means you’ll never owe more than your home is worth, so you can’t pass on any debt accrued through equity release to your loved ones.
 

What are typical lifetime mortgage interest rates?

Annual interest rates can be available from as low as 2.77% fixed for life with us. Most Key Equity Release customers have received a fixed annual interest rate of 3.53% or lower. The overall cost for comparison is 3.77% APR*.

*Lowest available rate correct as of 13 December 2021. All other stated rates correct as of 4 January 2022. Interest rate received and plan features are subject to eligibility. Ask for a personal illustration.