Mythbuster: "I won't be able to move home"

Portable plans

A common misconception about equity release is that you won’t be able to move home once you’ve unlocked your tax-free cash from it. In fact, with the plans we recommend, you can, subject to certain criteria.

Our customers often take out equity release so they can stay in their family home rather than move to a smaller one. Then 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.

However, we never know what’s around the corner. You may find in the future that you need to move to a more accessible home, or a less expensive one, or just want to move to a new area. That’s why plans that meet the Equity Release Council standards will guarantee you the right to move your plan to a new property.

This means you have the freedom to sell your house and transfer the debt to your new one, providing the new property meets the lenders criteria at that time.

If the new property is worth less than your old one, then you may still be able to move and take your plan with you - providing you repay some of the equity release debt.
 

Downsizing protection

By choosing a plan with downsizing protection, you can pay off the outstanding debt before the end of its term without paying an early repayment charge.

So if, for whatever reason, you want or need to move into another home that isn't acceptable to the lender, typically after five years of taking out a lifetime mortgage, you can pay the loan back early without incurring an early repayment charge. Without downsizing protection you may still be able to move, however, it's important to note you may incur an early repayment charge if you choose to repay your loan early.
 

Peace of mind

Talking through all of the options available with your equity release adviser before going ahead will give you peace of mind that if your circumstances were to change for health or family reasons, you’ll be able to adjust your home arrangements accordingly.

Key have helped more than 1 million people decide if equity release is right for them, and we’ll always do what’s right for you.
 

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