What are the most commonly asked questions about equity release? Is equity release regulated?
original loan amount itself, but also on the interest that’s already been added. You can read more about this on page 14. What do people usually use the money for? Key customers spend the tax-free cash they release on many different things – some of the most popular are home improvements, repaying existing debts and clearing an existing mortgage. Can I take out equity release if I still have a mortgage? Yes; however, you’ll need to repay the mortgage using the money released. Any funds left over are yours to enjoy. What happens when I pass away? Your home will usually be sold once you and your partner either pass away or move into long-term care. The sale proceeds will be used to repay the amount you owe, and any money left will go to you or your estate. How is my home’s value assessed? Your property will be valued by an independent RICS registered surveyor so you can be confident of an unbiased opinion of your property’s worth, for mortgage purposes. How much does your advice cost? You can find out if a lifetime mortgage or payment-term lifetime mortgage is right for you without it costing you a penny by talking to one of our expert advisers. All our equity release advice relates to our range of Key lifetime mortgages and payment-term lifetime mortgages only, and our fixed advice fee of £1,299 is only payable on completion.
Yes, equity release is regulated by the Financial Conduct Authority (FCA). Expert advice is also required before you can take out a plan. Will I still own my home? With a lifetime mortgage and payment-term lifetime mortgage you'll always own your own home and have the right to stay in your property for as long as you wish, however, with a payment-term lifetime mortgage you must ensure all mandatory payments are met. Will I ever fall into negative equity? All our plans meet Equity Release Council standards and come with the no negative equity guarantee, meaning you'll never owe more than your home's worth providing you keep to the terms of your plan. However, both a lifetime mortgage and a payment-term lifetime mortgage may result in limited or no property equity remaining and will reduce your financial options in the future. Can I move house? Yes, your plan can be transferred to a new home (subject to criteria). Who handles the legal side of the process? An independent solicitor will need to be appointed to handle the legal side of the process for you. We want to make sure you’re comfortable with your decision, so can suggest solicitors with lifetime mortgage experience if you prefer. What is compound interest? All our plans are subject to compound interest. That’s where you pay interest not only on the
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 only be charged the same £1,299 advice fee you’d pay with Key, even if their fee is usually higher.
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