LIFETIME MORTGAGES: What you need to know
Choose whether to receive your tax-free cash in one lump sum or in stages following an initial release.
Typically there are no monthly repayments as the loan plus the roll-up interest is usually repaid when the plan ends after you pass away or move into long-term care.
Alternatively, if you prefer, with some plans you can make ad hoc repayments to manage the size of the loan (subject to criteria).
With some plans you can ring-fence a percentage of your home’s future value to be passed on as a guaranteed inheritance, regardless of how much interest accrues.
You have the right to remain in your property for life or until you need to move into long-term care.
You can move to another property subject to the new property being acceptable to your lender’s criteria.
With downsizing protection, if after five years you need to move home, you can repay your loan in full without incurring an early repayment charge if your new property doesn’t meet the lender’s criteria.
Equity release will reduce the value of your estate and may affect your entitlement to means tested benefits.
It is a regulatory requirement to take specialist advice when seeking equity release.
Key’s qualified equity release advisers offer completely free personalised advice by phone, video call or face to face (as long as you don’t live in a restricted area).
Key offers lifetime mortgages only, which is a loan secured against your home.
All of Key’s plans come with a ‘no negative equity guarantee’, meaning you will never owe more than the property is worth, even if it has fallen below the value of the loan.
Key welcomes you to ask anyone affected by your decision to join your appointment, if you wish, so their questions can be answered, too.
All of Key’s equity release advice relates to its range of Key-branded products and is completely free of charge. So you can find out if it’s right for you without it costing you a penny.
You should always think carefully before securing a loan against your property.