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 to speak to an expert equity release adviser to make sure it’s the right thing for you.
Will I still own my home?
Yes. A lifetime mortgage, the most popular type of equity release, is 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.
Will I ever owe more than my home is worth?
Never. 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.
Can I move house?
You can. It’s possible to transfer your equity release plan to a new home, as long as it fits your provider’s criteria.
Do I need to get a solicitor?
Yes. An independent solicitor will need to be appointed to handle the legal side of the process. Key Equity Release want to make sure you are comfortable, so can help you with this decision if you prefer. What can we use the money for? Your tax-free cash can be spent on a wide variety of things, and some of the most popular include 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 a inheritance for my loved ones?
Absolutely. Some of their 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.
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 is a condition of the loan that you repay outstanding debts secured against your home before your loan completes. The rest of your money will be yours to enjoy.
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.
Who decides what my home is worth?
Key Equity Release only appoint independent RICS-registered surveyors to assess the value of your home, so you can be confident you’re getting an accurate valuation.