YOUR QUESTIONS ON EQUITY RELEASE ANSWERED

How safe is equity release?

Equity release is regulated by the Financial Conduct Authority, whose primary role is to protect consumers and enhance the financial market’s integrity. Before you can release equity from your home, you’ll need to speak to an expert adviser to make sure it’s the right thing for you.

Will I still own my home?

Yes. With a lifetime mortgage, the most popular form of equity release, you will always remain the owner of your home.

Are there monthly repayments?

With a lifetime mortgage there are typically no monthly repayments, as the loan plus roll-up interest is repaid when the plan comes to an end. You should always think carefully before securing a loan against your property: equity release will reduce the value of your estate and may affect your entitlement to means-tested benefits.

Can I take equity release if I have a mortgage?

Lots of Key customers use equity release to repay an outstanding mortgage balance. You don’t have to be mortgage-free when you apply for equity release, but it is a condition of the loan that you repay existing debts secured against your home. The rest of the money can be used however you wish.

Can I move house?

You can. It’s possible to transfer your equity release plan to a new home, provided it meets your lender’s criteria.

Do I need a solicitor?

Yes. An independent solicitor will need to be appointed to handle the legal side of the process. You can appoint your own solicitor or, if you wish, we can help you.

What am I allowed to do with the money?

The money is tax-free and yours to spend however you like. But think carefully about how much you really need to release.

Will I still be able to leave an inheritance for my family?

Absolutely. Some of the plans include an option to ring-fence a set percentage of your home’s future value so that it’s protected and can be passed on to your loved ones when your plan ends.

What happens to the plan when I die?

Often your home will be sold when you, or both parties in a joint plan, have passed away. The money from the sale is used to repay your equity release plan and any money left will go to your estate.

Who decides what my home is worth?

With Key Equity Release, an independent RICS-registered surveyor will assess the value of your home, so that you can be confident that you are getting an accurate valuation.