Is it right for you?
Our advisers are here to help you make an informed decision and will tell you straight away if equity release isn’t right for you.
What to consider before you take out an equity release plan
- By coming to Key, you have chosen the UK’s No.1 independent equity release specialist. Being independent means we will search the whole market to find the best plan for every customer
- Equity release plans, which may be lifetime mortgages or reversion plans, aren’t always right for everyone. Key welcomes family members to attend your consultation to find out how their inheritance would be affected. All plans will reduce the value of your estate
- Key’s specialist advisers will use our unique benefits software to find out which benefits, if any, would be affected. Equity release may affect your tax position and could affect your entitlement to means-tested benefits
- Because equity release is a lifetime commitment, it is only expected to be repaid upon your death, or entry into long-term care. We will explain the early repayment charges which may apply if you decide to repay the plan early
- Our expert advisers will also help you to understand how the compound interest on a lifetime mortgage adds up, and how the amount you owe can grow quite quickly. Remember a lifetime mortgage is secured against your home. You should always think carefully before securing a loan against your property
- Key Retirement offers a full advice and recommendation service to ensure you get the best plan possible. Unless you decide to go ahead, our service is completely free of charge, as our typical advice fee of 1.65% of the amount released would only be payable on completion of a plan
- Key is also proud to be a member of the Equity Release Council, ensuring all members of the public can obtain quality advice on equity release from specialist independent advisers
Ask the expert
Dean Mirfin, Key's Technical Director, answers your most popular questions when it comes to considering equity release.
What are the alternatives to equity release?
Whatever your particular reason for wanting extra cash, remember equity release is not right for everyone. Before you go ahead it’s important to have considered the alternatives. A good equity release adviser should always discuss these with you.
- Downsizing – selling your home and buying a less expensive property. Although this may mean you moving to a different area or having a little less space, and paying the moving costs, your new home could be mortgage free whilst you are financially better off
- Using savings or other investments - if these don’t meet with your needs, you could look into equity release as a further means of raising funds. Many people are worried about delving into this cash as the money has been saved to pass on as an inheritance to their loved ones or seen as an emergency fund should it ever be needed
- Other forms of borrowing - for example a loan or traditional mortgage, however you need to make sure that you are able to meet the monthly repayments
- Checking that you are claiming all the state benefits that you’re entitled to - for further information, visit Citizens Advice or Gov.uk
- Asking family or friends to help - asking your family for money is difficult for many as no one wishes to be a burden on their loved ones. However, it may be the case that your family could help your cash flow during your retirement years if you are in need
- You should also consider your retirement options, such as how to use your pension pot to secure an income