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Mythbuster: "My children will inherit my debt"

All of our plans meet the Equity Release Council standards, meaning you'll be protected from passing on any equity release debt to your children

Will my kids inherit debt through my equity release?

No. With plans that meet the Equity Release Council standards, you’ll never owe more than the value of your home. 

All of our plans come with the no negative equity guarantee, meaning any debt you accrue through equity release can’t be passed on to your loved ones.

When you, or the last remaining applicant passes away or moves into long-term care, signalling the end of your equity release plan, your home will usually be sold and the sale proceeds will be used to repay the amount you owe. Any money left will go to your estate.

Taken directly from the Equity Release Council's website, your protection is as follows: “When your property is sold, and agents’ and solicitors’ fees have been paid, even if the amount left is not enough to repay the outstanding loan to your provider, neither you nor your estate will be liable to pay any more.”

If you want to repay your equity release plan early, you can. However, it’s worth noting that you may incur an early repayment charge. Your equity release adviser will discuss any early repayment charges applicable to the plan they recommend to you clearly before you commit to your plan.

What if I go into long-term care?

If you have a joint plan, and you or the other plan holder goes into long-term care, the other can continue to live in the property, and your plan would not usually be affected. However, if you both require long-term care, or you’re a single applicant and go into long-term care, the plan will end and your property will usually be sold to repay the amount you owe.

If you have any further concerns about passing on equity release debt to beneficiaries, we can talk you through it and answer any further questions you may have.

If you are considering equity release we recommend that you read through is it right for me?

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Lifetime mortgage benefits

Your specialist equity release adviser will explain:

  • You can unlock cash from your home, tax-free, to help meet your needs in later life
  • You’ll always retain full ownership of your home and can stay in it for as long as you wish with a Key lifetime mortgage
  • You can choose to make reduced or no monthly repayments to suit your circumstances
  • You’ll never owe more than your home’s worth with a Key lifetime mortgage
  • You may be able to remortgage your plan in the future to release further funds or secure a better interest rate, although this isn’t guaranteed and may be subject to early repayment charges


Your equity release adviser will also outline the following important things to think about:

  • A lifetime mortgage is a loan secured against your home and subject to compound interest, meaning the amount you owe can grow quickly
  • Equity release will reduce the value of your estate and may affect your entitlement to means-tested benefits
  • Equity release may leave you with limited or no property equity remaining
  • Equity release will reduce your financial options in the future
  • A lifetime mortgage is a long-term financial product and is not designed to be fully repaid until the death or entry into long-term care of the last remaining borrower, otherwise early repayment charges may apply

Want to know more?

Get all the facts about equity release by downloading our free guide to read straight away.

Explore how Key could help you put the life in later life.

Things to consider

  • All our equity release advice relates to Key lifetime mortgages only - a loan secured against your home
  • 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

Here to help when you're ready

Use our free calculator

Find out how much tax-free cash you could release from your home now with our equity release calculator

Speak to an adviser

Book an appointment with a specialist equity release adviser at a time that's good for you

Assess your options

Our later life mortgage finder helps you consider your options

Page last updated: Wednesday 13 December 2023