Mr and Mrs Fitzgerald have lived in their London home for the past 22 years. Having bought it for £76,000, it has been their biggest investment by far, increasing in value by £349,000. However, with their interest-only mortgage coming closer to an end and £25,000-worth of credit card debt hanging over them, the couple were beginning to worry.
“£25,000 sounds like a lot of money, but it mounts up very quickly, even without trying. The problem is, we tried to pay the minimum, but they just don’t go down in a drastic manner. The interest rate is so high on credit cards you never seem to get to the bottom.
The couple looked into the option of selling their home and downsizing. However, they couldn’t find anything they liked.
“We liked our house and the local area. This is why we looked into equity release
. It gave us the answer. It allowed us to stay in our home and pay off the existing mortgage along with our credit card debts.
“We were visited by one of Key’s advisers who gave us all the information we needed. We told him what we wanted and he ensured we considered all our options. He went away, did his research and then got back to us with a proposal.
“We discussed our options and agreed on a plan suitable for us.
“For others in a similar position to ourselves, I would definitely advise speaking with an equity release adviser if they have equity in their property, which most people my age will.
“For us, equity release was the answer. We had money to re-decorate the front room which needed doing and we are able to enjoy nice meals out.”
Using housing equity
Currently, over 65s in the UK have more than 1 trillion pounds worth of unmortgaged housing equity and increasingly homeowners are looking towards this to help fund their retirement.
A lifetime mortgage is one way to release tax-free cash from your home. There are typically no monthly repayments to make, as the loan plus roll-up interest is repaid when the plan comes to an end. You should always think carefully before securing a loan against your home.
Some of Key’s plans offer a guaranteed inheritance feature, allowing you to protect a percentage of your home’s future value for your loved ones. Key always encourage discussing your decision with family.
Key Equity Release plans come with a wide range of features designed to give you greater flexibility.
Things to consider
Your specialist equity release adviser will explain:
You have to get advice before releasing tax-free cash from your home. Please read all our information and make sure it's right for you
Key Equity Release offer lifetime mortgages only, which is a loan secured against your home.
All of our plans meet the Equity Release Council
standards and come with several protections, including the no negative equity guarantee, which means you’ll never owe more than your home’s value.
Equity release reduces your estate's value and may affect any means-tested benefits you're eligible for.