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Our equity release advice relates to Key's range of lifetime mortgages only - loans secured against your home.
Watch our video to learn more about the benefits and drawbacks of equity release and see if it could be right for you.
Key lifetime mortgage customers accessed £78,334 on average
Key Market Monitor 2023
The amount you can release is a percentage of your home's value (loan to value, or LTV). This varies between people and properties and is personal to you. The lowest amount you can release is £10,000.
Try our lifetime mortgage calculator to quickly see how much you could release from your home.
Our lifetime mortgage calculator uses two things to work out how much you could release:
Age: If you apply as a couple, the youngest applicant's age will determine how much you could release
Property value: A higher value usually results in a higher lifetime mortgage release
A lifetime mortgage calculator shows how much you could release from your home.
You'll need to tell us some basic details about you and your property. We can then get your instant, no obligation lifetime mortgage results.
You can use our free lifetime mortgage calculator in 3 easy steps:
Fill out basic details about yourself and your property
Press the 'calculate' button
See your personalised lifetime mortgage results
To be eligible for a lifetime mortgage, you must be:
ⓘ Not eligible yet?
Try our later life mortgage finder. We could still help you take control of your later life finances.
Lifetime mortgage interest rates vary depending on your plan and circumstances. They're fixed for the life of the equity release plan.
AER stands for Annual Equivalent Rate. It shows what the interest rate would be if the interest compounded each year.
APR stands for Annual Percentage Rate. It's the cost you pay each year to borrow money, including fees, expressed as a percentage.
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 most suitable later life option for you.
Don't take our word for it - see what our lifetime mortgage customers are saying...
64 & 63, approaching retirement
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.
A lifetime mortgage is a type of equity release and is a loan secured against your home.
You can release equity in one of two ways with a lifetime mortgage:
Lump sum: Access all your money in one go. More on lump sum lifetime mortgage.
Drawdown: Access your money when you need it (after an initial lump sum). More on drawdown lifetime mortgage.
The money you unlock through a lifetime mortgage is tax-free. You can spend it in a variety of ways, such as:
You may want to repay some of your lifetime mortgage early and reduce your total cost of borrowing.
Subject to criteria, you have the option of making ad-hoc repayments of up to 10-12% of the initial amount you've borrowed each year.
A lifetime mortgage is designed to run for the rest of your life. Further repayments, including repaying in full, may incur early repayment charges. Your adviser will explain this in detail so you know what your options are.
We make your journey as quick and easy as possible. Our applications complete within 8-12 weeks on average.
As each application is unique, timescales aren't guaranteed. Applications for a lifetime mortgage include the following steps:
Use our free UK lifetime mortgage calculator: It's free and no-obligation - try it now
Speak to an adviser: You then speak to one of our qualified equity release advisers on a date and time that works for you
Discuss legalities: You'll discuss the legalities with your independent solicitor
Receive money: You'll receive your money to spend in a variety of ways
With a lifetime mortgage, the interest accrues, then rolls up and adds to the loan. This is also known as compound interest. The interest rate you get will be specific to your circumstances and fixed for the life of the loan.
The interest rate when your plan starts determines how quick interest grows. This will impact the total cost of borrowing over the term of the loan.
During the first period the interest is charged and added to the original loan amount. Following this, the interest is then calculated and charged on what you owe at the time. This is the original loan plus interest, not just the amount you initially borrowed.
This means a larger amount of interest adds to your lifetime mortgage each period. This cycle continues until the plan ends.
The interest is added either monthly or annually depending on your plan. There are ways you could reduce the total cost of borrowing of your lifetime mortgage.
ⓘ Illustrative example
Illustrative purposes only. It uses the average release amount of £82,475 and monthly equivalent rate (MER) of 6.3% – Key Market Monitor H1, 2023. Average UK house price of £288,000 – ONS, August 2023.
Year | Balance at start of year | Interest (6.3% MER)¹ | Balance at end of year² | Remaining property equity³ |
---|---|---|---|---|
1 | £82,475 | £5,349 | £87,824 | £200,176 |
2 | £87,824 | £5,695 | £93,519 | £194,481 |
3 | £93,519 | £6,065 | £99,584 | £188,416 |
15 | £198,778 | £12,891 | £211,669 | £76,331 |
20 | £272,153 | £17,649 | £289,802* | £0 |
* The end of year balance is higher than the property's value. You'll never owe more than your home's worth, though, with a Key lifetime mortgage. This is the no negative equity guarantee.
¹ The rate at which interest adds to the loan – in this case, monthly (MER). All Key lifetime mortgages have a fixed interest rate for life. This column shows how much interest has added to the loan that year.
² How much is owed at the end of the year, including compound interest.
³ The difference between your property value and your outstanding lifetime mortgage balance.
You could save thousands over the course of your plan with a drawdown lifetime mortgage. This is because you only pay interest on the funds you release. Future drawdowns aren't guaranteed and are subject to interest rates when you drawdown - not your original rate.
ⓘ Illustrative example
Illustrative purposes only. It uses the average release amount of £81,703 and monthly equivalent rate of 6.74% (future drawdowns will be charged at the prevailing interest rate) - Key Market Monitor Q1, 2023.
Mrs Lewis and Mr Davies both released £81,703. They took it in different ways to meet their needs. Over the same 15-year period, with the same total release, Mr Davies saved almost £32,851 in interest compared to Mrs Lewis.
Mrs Lewis took her £81,703 in one go
Interest was charged on the full release from day one (monthly rate of 6.74%)
Total cost of borrowing after 15 years: £223,915
Mr Davies took an initial loan of £51,703 from his facility
He took two £15,000 drawdowns in year 5 and 10 - interest was only charged when the funds were released
Total cost of borrowing after 15 years: £191,064
Read our RetireWise articles to learn more about how a lifetime mortgage works and if it's right for you.