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See what you could release tax-free
There are many reasons why people choose equity release. Here are some of the most common uses:
Equity release is a way to access some of the tax-free funds from the value of your home. It can help you take control of your later life finances.
Watch our video to find out more about Key's equity release and see if it could be an option for you.
Equity release is a way for homeowners aged 55+ with a property valued at a minimum of £70,000 to release some of the tax-free funds from their home. It can play an important role in helping you take control of your later life finances. It's worth noting that equity release is a complex product with long lasting effects and may not be right for everybody. There are two types of equity release:
Equity release is available to UK homeowners aged 55 or over. There are four types of equity release available with Key in the UK and they work in different ways.
With Key's range of lifetime mortgages, you could access the funds you need now and still own your home. There are usually no monthly repayments to make. The loan, plus compound interest, is usually repaid through the sale of your property. This is generally when the last remaining applicant on the deeds passes away or moves into long-term care.
You can only release equity through a qualified adviser who'll make sure:
- You only borrow what you need
- You understand how the product works
- It's right for you - if it's not we'll tell you
You have two options when it comes to releasing your funds with a Key lifetime mortgage.
- With a lump sum lifetime mortgage where you release tax-free funds from your home as a single amount.
- With a drawdown lifetime mortgage where you release your tax-free money in smaller amounts after an initial lump sum.
Watch our video to learn more about the benefits and drawbacks of equity release and see if it could be right for you.
Our equity release advice relates to Key's range of lifetime mortgages only - loans secured against your home.
Key is a specialist, award-winning later life mortgage provider for the over 55s. We've helped over a million customers see if equity release was right for them. After we take the time to understand your needs, we'll recommend the right later life option for you.
Customer stories
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
Your other options with Key
If another product is more suitable, we'll refer you to a different adviser within Key Group to help. If you go ahead, you'll only be charged the same £1,299 advice fee you'd pay with us, even if their fee is usually higher. Key offers alternatives to equity release such as a retirement interest-only mortgage or retirement repayment mortgage.
Other options to think about
It's important to know your other options before going ahead with equity release. These include: downsizing, unsecured lending, using existing assets, or support from friends or family.
We know that you may still have some burning questions too. So, here are the answers to the queries we get asked the most. Still can't find the information you’re looking for? We're only a phone call away.
Before deciding on equity release, consider factors such as the impact on your estate, the potential effect on means-tested benefits, interest rates and the long-term implications for your estate. Seeking advice from one of our equity release advisers can provide you with a comprehensive understanding of how it could help you reach your later life finance goals.
Yes, you can move house if you have an equity release plan. Most equity release plans are portable, meaning you can transfer them to a new property. However, the new property will need to meet the criteria set by the equity release provider. This may involve a revaluation and adjustments to your plan based on the new property's value and location.
If you are unable to port your lifetime mortgage to the new property it will need repaying when you move and may be subject to an early repayment charge.
Yes, with a lifetime mortgage, you will retain ownership of your home. You'll be able to live in it for the rest of your life or until you move into long-term care. The lender places a first legal charge on your property.
This is entirely different to a home reversion plan, as this involves selling all or part of your property. The home reversion company becomes the legal owner of the property and you become the beneficial owner.
In the case of a lifetime mortgage, if you pass away or move into long-term care, typically your home will be sold, and the proceeds will be used to repay the outstanding loan, including compound interest.
If there is any remaining equity, this will go to your estate if you pass away. If you move into long term care, you will receive the remaining funds after repayment of the lifetime mortgage.
With a home reversion plan, the provider will receive their share of the proceeds when the property is sold, and you or your estate will receive any remainder.
Choosing the right equity release plan involves careful consideration and expert advice. Our specialist equity release advisers will talk you through your available options based on your needs and circumstances. They will help you understand the potential impact on your finances, inheritance, and other aspects, ensuring you make an informed decision.
Page last updated: Tuesday 17 December 2024