Your questions on equity release answered
How safe is equity release?
Equity release is fully regulated by the Financial Conduct Authority, whose primary role is to protect consumers. Before you can release equity from your home, you’ll need advice from a qualified equity release expert to make sure it’s the right thing for you.
Will I ever owe more than my home is worth?
No. All of Key Equity Release’s plans are approved by the Equity Release Council and come with a no negative equity guarantee, meaning that you’ll never owe more than your home is worth.
Will I still own my home?
Yes, you will always own your home with Key Equity Release plans. These involve a lifetime mortgage – the most popular type of equity release – and it’s a loan secured against your home. But unlike a traditional mortgage, there are typically no monthly repayments, as the loan plus roll-up interest is repaid when the plan ends.
Do I need to get a solicitor?
Yes. An independent solicitor will need to be appointed to handle the legal side of the process for you. Key Equity Release want to make sure you are comfortable with
your decision, so can suggest solicitors with equity release experience if you prefer.
What can I use the money for?
Your tax-free cash can be spent on a wide variety of things, including travel, home improvements, repaying existing debts or gifting to loved ones. Remember, you should always think carefully before securing a loan against your home.
Will I still be able to leave an inheritance for my loved ones?
Absolutely. Some plans include an option to ring-fence a set percentage of your home’s future
value, so it’s protected and can be passed on to your loved ones when your plan ends.
Who decides what my home is worth?
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.
Can I take equity release if I have an existing mortgage?
Lots of people 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’s a condition of the loan that you repay outstanding debts secured against your home before your loan completes. The rest of your money is yours to enjoy.
Can I move house?
You can. It’s possible to transfer your plan to a new home, as long as it fits your provider’s criteria.
What happens 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.