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Paying off your existing mortgage

Clearing your existing mortgage when you’re in or approaching retirement can not only be a welcome relief, but can also free up some of your monthly income to spend on some of the things you would really want and may need for later life

Can I pay off my existing mortgage with equity release?

With more people now discovering that their retirement will be longer and more expensive than they’d originally anticipated, many are looking at ways to make their home work harder for them without needing to sell up and move.

One of the options that you could explore as a way to pay off your mortgage in retirement is by using some of the equity that has built up in your property over the years with an equity release plan.

A lifetime mortgage is the most popular form of equity release. Available to homeowners aged 55 and above, with a lifetime mortgage there are typically no monthly repayments as the loan, plus roll up interest, is repaid when the plan comes to an end.

Although people choose to release equity for a variety of reasons, by using a lifetime mortgage to clear an existing mortgage, homeowners could reduce their monthly outgoings and use their income to help fund a more comfortable retirement.

Downsizing vs equity release

In the past, many felt the only way to access the value from their home was by downsizing. However, aside from the costs that come with downsizing such as conveyancing, surveys, solicitors and moving fees, there are also the obvious emotional repercussions of leaving a home you love to consider. With a lifetime mortgage, the most popular form of equity release, you could release up to 55% of the value of your property while staying in the home you love and remaining the home owner. It’s proved a timely solution for some retirees who find themselves cash poor, whilst living in an asset worth hundreds of thousands of pounds.


How can I find out if equity release is right for me?

25% of Key’s equity release customers used the funds released from their home to pay off their existing mortgage*. However, it’s not always right for everyone, which is why getting the right sort of advice is crucial.
At Key Equity Release, our specialist advisers will only make a recommendation after taking the time to understand your personal circumstances and objectives because the first thing to work out is whether equity release is right for you.

We’ve helped more than a million people decide if equity release is right for them. We’ll ensure you consider your other options and, if equity release isn’t right for you – we’ll tell you.

Cannot believe how easy it was! Our adviser was excellent. She explained everything fully in easily understood language (no financial jargon). Having researched all the available plans we were happy to proceed with the plan that best suited us. From the initial appointment to us being mortgage-free and able to enjoy our retirement took only 5 weeks.”

Mr R Owens, Trustpilot Review

Typically funds are released in 8-12 weeks

* Key's Market Monitor Report

Is equity release right for you?

Equity release is a way for homeowners over 55 to release some of the tax-free cash from their property to spend on a variety of uses. However, it’s not right for everyone.  

At Key Equity Release, our specialist equity release advisers will discuss your needs and ensure you consider all your options, and their expert advice is available over the phone, via video appointment or face-to-face, whichever is right for you.
And, if equity release isn’t right for you – we’ll tell you.

Get your free guide

Download your free guide to see how equity release works

I want to calculate

Take the next step and find out how much you could release with our free equity release calculator.

I want to get advice

Or, if you would like to discuss your options with one of our friendly expert equity release advisers, request a free call back here.

Things to consider

  • All our equity release mortgage advice relates to Key lifetime mortgages only - a loan secured against your home
  • Equity release will reduce your estate’s value and may affect your entitlement to means-tested benefits
  • A lifetime mortgage may result in limited or no property equity remaining and will reduce your financial options in the future
  • 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
  • £899 advice fee only payable on completion
Page last updated: Thursday 29 June 2023