This guide talks you through your later life finance options including how you release tax-free cash from your property using equity release.
Your guide to Equity Release Find out how to unlock some of the money in your home and explore your options
Thank you for contacting us about releasing equity in your property and exploring your later life finance options. For more than 25 years we've been helping people like you turn their property wealth into a means to fund a better retirement. We'll give you the answers on how to transform the equity in your home into tax-free cash and, as the UK’s leading experts, we're here to guide you every step of the way.
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Why choose Key?
Our customers love us
We work to the highest industry standards As a proud member of the Equity Release Council, you can feel confident knowing you’re speaking with expert advisers who always put your best interests first.
Our equity release advice is award-winning With over 80 industry accolades under our belt, including the prestigious Equity Release Adviser of the Year Award 2023, our commitment to excellence is widely recognized.
You’re protected by the FSCS Rest easy knowing that all our equity release advice and arrangements are covered by the Financial Services Compensation Scheme, offering you protection of up to £85,000.
We’re the UK’s most trusted equity release adviser, with more 5-star reviews than anyone else in the market. Your satisfaction and peace of mind is our top priority.
Moneyfacts Awards 2023 Equity Release Adviser of the Year
Honest | Personal | Trusted
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Speaking with one of our friendly advisers is the first step towards taking charge of your financial future , so you can truly enjoy the freedom and comfort that comes with a well-planned later life. The initial meeting with a fully-qualified adviser is free of charge and can be undertaken on a video call on your computer or smart phone or by telephone call.
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What is equity release?
If you’re a homeowner aged 55 or over and have a property worth at least £70,000, equity release could be a great way to unlock some of the cash that’s currently tied up in the value of your home and turn it into tax-free cash. This could give you more financial freedom to enjoy life to the fullest.
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Find out more about equity release by watching our short video.
So, how much equity do I have? In simple terms, your equity is the value of your home minus any outstanding mortgage or loan secured against it. For example, if your house is worth £300,000 and you have an outstanding mortgage of £50,000, your property equity would be £250,000. Equity release allows you to access some of that money without ever needing to sell your home or move out – meaning you can stay in the home you love while having more flexibility with your finances.
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While equity release can be a great option for many, it’s not for everyone. Equity release will reduce your estate’s value and it could affect your eligibility for means-tested benefits. It may leave little or no property equity remaining, limiting your financial options in the future and will mean that you have less money in your home to use to pay for care in later life. Also, your loved ones won’t inherit the full value of your home after you pass away. That’s why it’s essential to speak with an expert before making any decisions about equity release or later life lending. What’s more, the Financial Conduct Authority (FCA) requires you to take professional advice before proceeding with equity release.
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How can I use the money I release?
If you’re thinking about releasing a cash lump sum, you might already have some exciting plans in mind. Here are just a few of the ways that our customers use the money they access through later life finance: Pay off debts If you have an existing Gift money to family Help the children or
mortgage or secured loan, you must pay that off first which can be done by using some of the funds from your equity release. After that, you could clear other existing debts such as credit cards or loans. Any extra money released can be used for something else like the examples below. You should always think carefully before securing a loan against your home to repay existing debt.
grandchildren with a house deposit or contribute to a
Boost your retirement pot Make your retirement even more comfortable with a bit of extra financial security from a cash reserve to act as a safety net for upcoming expenses if your pension pot isn’t as big as you’d like.
Home improvements Renovate your home or garden or make adaptations to better suit your needs as you enjoy your later years.
dream wedding. Replace the car
Upgrade your car, or maybe even invest in a caravan or motorhome to explore and enjoy life on the open road. Go on holiday Take that holiday of a lifetime or finally visit relatives who live abroad.
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How customers use equity to enrich their lives
“All the worries and the stresses have gone now; we can just look forward to having a nice relaxing retirement” Michael & Carol
Nothing makes us happier than knowing we’ve helped our customers live their best lives. It’s incredibly inspiring to hear their stories, and some of them are truly remarkable.
John. 69, retired
Michael and Carol. 64 & 63, approaching retirement
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How does equity release work? After years of hard work and dedication to making monthly mortgage payments, your home has likely become your biggest asset. If you’ve lived there for many years, you’ve probably benefitted from rising property values. For many, equity release is a way to unlock some of that value and enjoy the rewards of their hard work. While it’s not right for everyone, tens of thousands are already enjoying the benefits of accessing cash tied up in their homes in this way. At Key, our equity release advice relates to lifetime mortgages.
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A lifetime mortgage specifically lets you unlock tax-free cash from your home while keeping full ownership and the peace of mind you can stay living in your home. There are two ways to access your tax-free cash:
Lump Sum Take all the money in one go if you have specific plans or needs.
One of the advantages of this type of product for many is that there are no monthly repayments required unless you choose to make them. However, even if you’re only able to make small repayments, it will help reduce the amount of interest accrued over the lifetime of your loan. You can discuss these products and their features with your Key adviser.
Drawdown Release an initial amount and then access more funds as and when you need them. Subject to criteria.
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What is compound interest? It’s also important to know that lifetime mortgages are subject to compound interest, which will significantly increase the amount owed if no payments are made. Your Key adviser will provide you with a full personal illustration of how compound interest will affect the amount that you owe over time.
Compound interest example
Year 1
Year 2
Year 3 Year 4
Year 5
Find out more on our website
Original loan amount owed
Interest added to the loan amount plus any interest already added
The loan, plus interest owed, is typically repaid from the sale of the home when the last borrower dies or moves to long-term care.
The amount of interest increases each year as is based on a larger loan amount
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Benefits and drawbacks of equity release
Watch our video to learn more about the benefits and drawbacks.
Benefits
Drawbacks
You can unlock cash from your home, tax-free, to help meet your needs in later life You’ll always retain full ownership of your home with a lifetime mortgage recommended by us You can choose to make reduced or no monthly repayments with a standard lifetime mortgage to suit your circumstances
A lifetime mortgage is a loan secured against your home and subject to compound interest, meaning the amount you owe can grow quickly Equity release will reduce the value of your estate and may affect your entitlement to means- tested benefits Equity release may leave you with limited or no property equity remaining
You’ll never owe more than your home’s worth or pass on any equity release related debt to your family with a lifetime mortgage recommended by us You may be able to remortgage your plan in the future to release further funds or secure a better interest rate, although this isn’t guaranteed and may be subject to early repayment charges
Equity release will reduce your financial options in the future A lifetime mortgage is a long-term financial product and is not designed to be fully repaid until the death or entry into long-term care of the last remaining borrower, otherwise early repayment charges may apply
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How does our advice work? When considering releasing equity from your home, it’s important to explore all your options to ensure you’re making the best choice for your needs. This could mean downsizing, using your savings, or looking into other borrowing options first. Unlike companies that only advise on equity release products, we take a more comprehensive approach. Our expert advisers explore all possible options to find the one that’s right for you based on your specific needs and circumstances.
Here’s what we consider as part of our advice process:
Lifetime mortgages If you’re aged 55 or older, this option allows you to unlock some of the tax-free cash tied up in your home while keeping full ownership. It’s a loan secured against your property, and you can choose to take the money as a lump sum or in smaller amounts over time as you need it after an initial amount is taken. Interest-payment lifetime mortgage Like a standard lifetime mortgage where you release cash from your home, however with this option you agree to make monthly interest payments, helping to reduce the total cost of borrowing over time.
These options are both loans secured against your home.
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We also consider your suitability for other later life mortgage options such as:
Later life residential mortgage Like a conventional residential mortgage that you will probably have already had. With this option, we can find specific lenders that offer repayment terms well into your later life. Retirement interest-only mortgages (RIO) This is an interest only mortgage where the capital is only repaid when the last borrower dies or enters long-term care and the property is typically sold to repay the loan. This choice is for those aged at least 55 who are happy paying the interest only so that the amount owed doesn’t increase over time.
Each option has its own benefits and drawbacks. Our expert advisers will discuss all your options with you in detail as part of our advice process. There’s no selling, just advising – if these products are not right for you, we’ll tell you. With over 25 years of experience, we know that every situation is different and we’re committed to providing advice tailored to you. We’re here to guide you every step of the way, making the process as smooth and stress-free as possible. And the best part? Our advice is free unless you choose to go ahead as the fixed advice fee of £1,699 is only payable when your equity release plan is set up. This means you can explore your options without it costing you a penny.
Remember a mortgage is a loan secured against your home. Your home may be repossessed if you don’t keep up repayments. Credit and affordability tests apply.
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Can I tailor my lifetime mortgage? Absolutely! The range of lifetime mortgages we recommend allow you to personalise your plan with features and protections that suit your needs, helping you to live the later life you’ve always dreamed of. What’s important to you? Subject to lender’s criteria, these features could be available to you. Your adviser will find out which features are right for you before recommending a plan. I’d like to reduce the size of the loan on which the interest is charged. I’d like to be able to move home if my
It’s important I always remain the owner of my home. You can with the lifetime mortgages we recommend. I don’t want to ever owe more than my home is worth. You won’t with the lifetime mortgages we recommend. If I do choose or need to repay my loan early, I’d prefer to have fixed early repayment charges that I know in advance. Any of the lifetime mortgages we recommend.
I may want to downsize later and repay my loan without early repayment charges. Downsizing protection. I want to pay some or all the monthly interest to reduce the total cost of borrowing. Interest payment lifetime mortgage.
circumstances change. Take your plan with you when you move, known as porting. I want to take all my
You can make partial capital repayments. I want to take some money now and come back for more later. A drawdown plan.
money in one go. A lump sum plan.
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CASE STUDY
off the outstanding balance on her existing mortgage as well as clear her existing debts. “I first contacted Key a while ago after reading about the service that they offer. Unfortunately, at this time my house wasn’t worth enough to allow me to pay off my existing mortgage and debts. Five years later, after reading about them again, I decided to ring up and arrange a consultation with my local adviser. “I decided to go ahead with Key. My first appointment went really well. My adviser asked questions to find out about my financial situation. I was provided with all the information I needed, and he was always at the end of the phone if I ever needed him.
“As I don’t have any dependants, I made the
“I cleared my existing mortgage to enjoy a better retirement” Ms Hamblin
decision not to discuss equity release with my family until the process was complete. In the second appointment my adviser provided me with a recommendation which he discussed with me in depth to make sure it was a plan that suited my needs. He didn’t pressure me to make any decisions – I knew that he had my best interests at heart.” Ms Hamblin now had enough equity in her home to pay off her existing mortgage and debts. After considering all her options and looking at different products, her adviser recommended a lifetime mortgage that met all her needs.
Find out how one of our customers used some of the money tied up in her property to make her later life better. Ms Hamblin from Somerset
four days a week as a service coordinator for adults with learning disabilities, Ms Hamblin needed a lump sum which would allow her to pay
first decided to look into equity release as a means of improving her financial situation. Despite working
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“I was able to pay off my existing mortgage, clear existing credit card debt and repay my overdraft. I also plan on making a few home improvements. I want to upgrade my windows, have French shutters put in the bedroom and I would like a dry-stone wall around the front garden. I can now do the things that I have always dreamt of but could never have afforded.
“The whole process with Key was extremely
Our adviser says Ms. Hamblin received thorough advice on how taking out a lifetime mortgage could impact the value of her estate and the equity in her property. We always advise our customers to think carefully before securing a loan against their home, especially when it comes to repaying existing debts, as Ms. Hamblin chose to do. In Ms. Hamblin’s case, she had no dependants and decided to release only the amount she needed to comfortably enjoy her retirement. We guided her to discuss this decision with her family, ensuring she had all the information and support she needed. With a clear understanding of her options and potential impacts, she was able to make the choice that felt right for her – empowering her to live the retirement she wanted.
straightforward – It has been the right solution for me – I have already recommended Key to several people.” Ms Hamblin now looks forward to retiring and spending more time enjoying her hobbies which include pottery and making jams, chutneys, cakes and bread which she hopes to sell at local farmers markets.
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Is equity release safe?
Yes. Your safety and peace of mind is our top priority. All our equity release advisers hold specialist qualifications, and you can only take out equity release after receiving advice from a qualified adviser. They will guide you through every step to ensure you get the right support to make the choice that’s best for you and your future. As an added layer of protection, we’re proud members of the Equity Release Council, and we only recommend lifetime mortgages that meet their strict standards of safety and fairness.
Watch our video to find out about the safeguards and protections our recommended lifetime mortgages come with.
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Equity Release Council guarantees Every lifetime mortgage product we recommend comes with these important guarantees: Stay in your house You’ll always retain full ownership of your home and can stay in it for as long as you wish. You can still move home If your circumstances change, you have the right to move to a new home in the future, subject to certain criteria. No negative equity guarantee You’ll never owe more than your home is worth or leave any equity release-related debt to your loved ones, as long as you meet the terms and conditions.
Fixed interest rate As long as you keep to the agreed terms, your interest rate is fixed for the life of your loan, protecting you against future rate increases and giving you stability and peace of mind. Flexible payment options While there are typically no monthly repayments required with a lifetime mortgage, you have the flexibility to make voluntary payments without an early repayment charge, depending on the lending criteria. Things to consider It’s important to remember that a lifetime mortgage will reduce the amount of inheritance you can leave, and can reduce your financial options in the future.
Honest | Personal | Trusted
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CASE STUDY
but did not have the money to carry them out. “We had heard a lot about equity release – so thought the best course of action was to find out more”, explains Alice. After speaking to a specialist equity release adviser, Alice and her partner decided taking out a lifetime mortgage with Key would be right for them. “Since releasing the cash we have made some major home improvements which has helped massively – we have installed a stair- lift, bought a reliable car, got a new bathroom and purchased two rising chairs because of our mobility issues.
“We both found the whole process very easy and straightforward and we still have some equity in our home. I would not hesitate to take out equity release. It has been great – we no longer have to worry about our finances and we now live a lot more comfortably. “We also plan on going on a holiday of a lifetime next year visiting family in Cyprus then going to cruise around the Mediterranean and Greek islands – we’re very excited!”
“How we boosted our later life finances to live a more comfortable retirement” Alice
Alice, a retired personal assistant and her partner from Somerset were looking at ways to help boost their finances and live more comfortably. “We had been chipping away
Alice struggles with her mobility and wanted to make a few improvements around the house to make life easier
at our savings for a while because our pension just wasn’t enough to get by – but it soon dwindled.”
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The most asked questions Is equity release regulated? Yes, equity release is fully regulated by the Financial The amount you can release depends on several factors, including the value of your home, your age, and any specific product features you want. Your adviser will explore all of this with you and provide a personalised illustration tailored to your needs. Will I still own my home? Yes, with a standard lifetime mortgage recommended by us, you’ll always own your home and have the right to stay in it for as long as you wish. Will I ever fall into negative equity? Conduct Authority (FCA). How much can I release? No, all the plans we recommend meet the Equity Release Council’s standards and come with a no negative equity guarantee. This means you’ll never owe more than your home’s value, provided you keep to the terms of your plan.
Our adviser says We helped Alice and her partner explore how much equity they could release from their property and guided them through the details of how a lifetime mortgage could impact the value of their estate. We also made sure they understood how compounding interest could affect their remaining equity over time. With all this information at their fingertips, Alice and her partner were able to make the decision that felt right for them, allowing them to enjoy a more comfortable retirement in the home they cherish.
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Can I move house? Yes, your plan can be transferred to a new home, subject to certain criteria. Who handles the legal side of the process? An independent solicitor will handle the legal side of things for you. If you prefer, we can suggest solicitors with experience in lifetime mortgages. What is compound interest? With all the plans we recommend, compound interest applies. This means interest is charged not only on the original loan amount but also on the interest that has been added. Your adviser will make sure you understand how this works and what it means for you. What do people usually use the money for? Our customers use their tax-free cash for all sorts of things. Some of the most popular uses include home improvements, repaying existing debts, and clearing an existing mortgage. Can I take out equity release if I still have a mortgage? Yes, you can. You’ll need to repay the existing mortgage which you can do with the money that you release, and any leftover funds are yours to enjoy.
What happens when I pass away? Typically your home will be sold once the last borrower dies or enters long-term care. The sale proceeds will be used to repay the loan, and any remaining money will go to your estate. How is my home’s value assessed? Your property will be valued by an independent, RICS- registered surveyor for mortgage purposes, ensuring an unbiased and professional opinion of its worth. How much does your advice cost? You can find out if a lifetime mortgage is right for you at no cost by speaking to one of our expert advisers. The fixed advice fee of £1,699 is only payable when your equity release plan is set up. If another product is more suitable, we’ll refer you to a different adviser within Key Group who can help. If you go ahead, you’ll never be charged more than our standard fixed advice fee, even if their fee is higher.
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Wills & Lasting powers of attorney
Wills A Will is a legal document where you can clearly outline who you want to inherit your money, property, and possessions after you’ve passed away. It’s your opportunity to ensure that your wishes are honoured and that your loved ones receive what you intend for them. Without a Will, the rules of intestacy will take over, deciding who inherits your belongings according to legal guidelines, rather than your personal preferences. Lasting Power of Attorney A Lasting Power of Attorney (LPA) is a legal document that lets you appoint trusted individuals to manage your affairs if you’re ever unable to do so yourself. This could be due to health reasons or any situation where you might need support. When you have these important documents in place, you ensure that your chosen representatives will handle your property and financial matters or make decisions about your health and welfare according to your wishes. It’s a vital step in making sure your needs and preferences are respected, even if you’re not able to communicate them yourself.
We also offer Wills & Lasting powers of attorney. As you enter later life, it’s natural to think about who you’d like to inherit your estate or how to ensure you’re cared for if you’re no longer able to make decisions yourself. With our Wills & Lasting powers of attorney services, you can take control of your future and make your wishes clear. Our fully qualified estate planners, who are members of The Society of Will Writers, will listen to your needs and provide thoughtful advice tailored to you and your loved ones. You can feel reassured that your affairs are in order, allowing you to focus on enjoying your later life. If you choose, you can add any estate planning fees to your equity release loan, although these will attract compound interest.
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CASE STUDY
“We’ve now got peace of mind for years to come” Clive
“Our adviser was very professional and took a lot of hassle out of the process, helping with all the paperwork involved”. During the process, Clive was pleasantly surprised to discover the valuation of his property was a lot more than what he had expected. “I expected the house to be worth around £180,000 but it turned out to be worth £225,000!”
As a result, the couple decided to reap the rewards of years of hard work making monthly mortgage payments. They decided to cash in on some of their home’s value using a lifetime mortgage and took a lump sum to pay off some burdening existing debts. “I first heard about Key on TV and searched them online too. I then decided to give them a call. I’d looked into equity release previously and contacted some other companies but didn’t feel ready after talking to them.
Like many couples Clive and Ruth Williams found they had less money than they would have liked after retiring. After a successful career income. Although Ruth still spanning over 40 years, Clive worked, her deteriorating was sadly made redundant health meant she had to several times which left reduce her working hours. a large shortfall in their
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This meant the couple were able to release even more money than they initially thought, meaning they could release what they needed to meet their goals. “Equity release has taken
and security for years to come. We’ve cleared our existing mortgage, paid off our existing debts and plan to make some home alterations. I would definitely recommend Key and equity release to others, it has certainly helped us!”
Our adviser says Mr. and Mrs. Williams were thoughtfully guided through the decision of whether to secure a loan against their property to repay existing debts. They were reassured that they had sufficient equity in their home to explore this option. However, they were also informed about how taking out a lifetime mortgage could impact their future financial flexibility. I carefully considered all possible alternatives, including later life residential mortgages, downsizing, and other non-property-based solutions. After evaluating their unique situation, I recommended the equity release plan that best suited their needs and goals, ensuring they made a well-informed decision.
away the stress at the end of the month and given us peace of mind
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What’s next? The next step is to chat to a qualified equity release adviser. Call now to book your free, initial consultation: 0800 953 3743
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Telephone calls may be monitored or recorded to enable us to improve our service to you. All information is correct at the time of production. This document does not constitute financial advice under the Financial Services and Markets Act 2000. If you require such advice, you should seek appropriate professional advice. Key Later Life Finance and Key Equity Release are trading names of Key Retirement Solutions Ltd which is authorised and regulated by the Financial Conduct Authority (FCA). Wills and LP Re As are not regulated by the FCA. gistered in England No. 2457440.
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