Key equity release offers a range of financial solutions designed to help homeowners unlock the value of their property.

With average new equity release lump sums reaching over £110,000 in 2025, it’s clear that lifetime mortgages are as popular as ever.¹

With a focus on providing clear and comprehensive advice, Key ensures that clients understand their options and make informed decisions.

In this article, the TimeBank team will explore Key’s advisory services and the pros and cons of consulting their advisors.

COMMENT: TimeBank.org.uk is an unconnected third-party data provider via this medium, and the reproduction in this piece represents the views of TimeBank.org.uk only and may not replicate the observations of Key. This article is not to be classified by the user as instruction, nor is it a recommendation to transact any financial product offered by Key.

What Is Equity Release?

Equity release is a financial product that allows homeowners, typically aged 55 and over, to unlock the value tied up in their property without having to sell or move out.

This can be done through two main types of plans: lifetime mortgages and home reversion schemes.

With a lifetime mortgage, you take out a loan secured against your home, which is repaid when you die or move into long-term care.

Home reversion involves selling a part or all of your home to a provider in exchange for a lump sum or regular payments, while retaining the right to live in the property.

What Key Later Life Finance Offers

Key Later Life offers a range of financial services designed to help individuals make the most of their retirement years.

Their primary focus is on equity release, providing advice on solutions that allow homeowners to unlock the value of their property.

In addition to equity release, Key Later Life provides advice on retirement planning, pensions, and investments.

Why Consider Key Equity Release Advice?

You may consider Key’s equity release advice to help you secure a way to supplement your retirement income because of the company’s reputation.

Key has helped over a million UK homeowners weigh up their equity release options.²

How Does Key’s Equity Release Advice Work?

Key’s equity release advice process is designed to be thorough and supportive, ensuring that clients are able to make informed decisions about their financial future.

Here’s how it works:

1. Initial Consultation: The process begins with a free, no-obligation consultation with one of Key’s equity release specialists. During this consultation, they will assess your eligibility and discuss your financial needs and goals.
2. Personalised Illustration: If equity release seems suitable, Key will provide a personalised illustration that outlines how much equity you could release, the costs involved, and the impact on your estate. This helps you make an informed decision.
3. Application Process: If you decide to proceed, you will fill out an application form. Key will guide you through this process, ensuring all necessary documents are completed and submitted.
4. Property Valuation: A professional valuation of your property will be arranged to determine its current market value. This valuation is crucial in calculating the amount of equity you can release.
5. Legal Advice: Independent legal advice is required to ensure you fully understand the terms and implications of the equity release plan. Key can recommend solicitors experienced in equity release.
6. Approval and Funds Release: Once all checks are complete and the legal process is finalised, your application will be approved. The funds will then be released to you, typically within six to eight weeks.
7. Ongoing Support: Key provides ongoing support and advice even after the funds have been released, ensuring you have all the information and assistance you need throughout the life of your equity release plan.

This process is designed to be transparent and supportive, helping you make the best financial decisions for your future. You can find more details on their website.

What Equity Release Plans Are Available Through Key?

The equity release plans available through Key are lifetime mortgages and payment-term lifetime mortgages.

Lifetime Mortgages

Lifetime mortgages allow homeowners to borrow against the value of their property without the need to make repayments during their lifetime.

Instead, the interest rolls up and the loan and accumulated interest are usually repaid when the borrower dies or moves into long-term care.

The lifetime mortgage available through Key allows borrowers to access at least £10,000.³

Eligibility

The eligibility criteria for Key’s lifetime mortgages correspond to those from other sectors of the market.

Criteria include:

• age: you must be at least 55.
• property value: your home must be worth at least £70,000.
• residence: you must be a UK resident, and your home must be situated in the UK.⁴

Your advisor will be able to help you make sure you meet all the eligibility criteria.

Features

The features of Key’s lifetime mortgages are fairly standard.

These are:

• fund disbursement: you can receive your funds as a lump some or as an initial payment followed by smaller instalments as and when you need them.
• minimum loan: you will have to borrow at least £10,000.
• flexibility: your lifetime mortgage can be remortgaged.⁵

Speak to your advisor to make sure these features meet your personal needs.

Payment-Term Lifetime Mortgages

Payment-term lifetime mortgages are equity release plans enabling homeowners to access more tax-free cash from their property at a lower interest rate than a standard lifetime mortgage would allow.

This kind of plan requires mandatory monthly repayments until the eldest applicant reaches the age of 66.

After this, no further mandatory payments are required, though voluntary payments can still be made to help manage the loan balance.⁶

Eligibility

Apart from the UK residency requirement, the eligibility criteria for Key’s payment-term lifetime mortgages differ from those of standard lifetime mortgages in a number of crucial ways.

These include:

• age: you must be between the ages of 55 and 62.
• property value: your home must be worth at least £125,000.
• repayments: you must be able to make loan repayments.⁷

Features

The features of Key’s payment-term lifetime mortgage differ slightly from those of a standard lifetime mortgage.

These are:

• funds: you can borrow up to 8% more than through a standard lifetime mortgage.
• loan size: how much extra you can borrow will be determined by your age, how much your home’s worth, and how much you can afford to repay.⁸

This newer type of lifetime mortgage could be a potential solution for homeowners between 55 and 62 who need access to a larger loan.

What Are the Benefits of Using Key’s Equity Release Advice?

The benefits of using Key’s equity release advice include being able to rely on the company’s reputation.

Other benefits include:

• Transparency: If your Key advisor doesn’t think applying for an equity release loan would be in your best interests, they’ll let you know and discuss your later-life alternatives with you.⁹
• Initial cost: After you contact Key, your callback appointment will be free.
• Award-winning service: Key has won over 80 awards for its equity release services, including ‘Best Equity Release Broker’ at the 2023 Mortgage Strategy Awards and ‘Best Equity Release Adviser’ at the 2022 Personal Finance Awards, and being named ‘Best Later Life Broker’ by the Financial Reporter in 2022.¹⁰
• Protection: Key is a member of the Equity Release Council, and its services are covered by the FSCS, which means clients are protected up to £85,000.

Naturally, you will also have to consider the potential drawbacks of Key’s services before making any decisions.

What Are the Drawbacks to Using Key’s Equity Release Advice?

While Key’s equity release advice is comprehensive and tailored, there are some potential drawbacks to consider.

These may include:

• Cost of Advice: Key charges a fixed advice fee of £1,299, which is payable upon completion of a plan.¹¹ This fee can add to the overall cost of the equity release process.
• Limited Product Range: Key’s advice is limited to their range of lifetime mortgages and payment-term lifetime mortgages. This means you might not get a full view of all the equity release products available in the market.
• Potential Bias: As Key advises on their own products, there may be a perceived bias towards recommending their plans over others that might be more suitable for your needs.
• Complexity: Equity release is a complex financial product, and understanding all the terms and implications can be challenging. Even with professional advice, it’s crucial to ensure you fully understand the long-term impact on your finances and estate.

Weighing the potential drawbacks against the benefits may help you decide whether or not to make use of Key’s advice services.

How Might Key Equity Release Impact Your Finances?

Key equity release can have several impacts on your finances, both positive and negative.

These include:

• Access to Funds: Equity release allows you to unlock the value tied up in your home, providing you with a lump sum or regular payments. This can be particularly beneficial for supplementing retirement income, funding home improvements, or paying off debts.
• Interest Accumulation: Unless you choose to make interest repayments or opt for a payment-term plan, the interest on the amount you release is compounded, which means the total amount you owe can grow significantly over time. This can reduce the equity remaining in your home and impact the inheritance you leave behind.
• Impact on Benefits: Receiving a lump sum or regular payments from equity release can affect your eligibility for means-tested benefits, such as Pension Credit and Council Tax Reduction. It’s important to consider how this might impact your overall financial situation.
• Costs and Fees: There are various costs associated with equity release, including setup fees, legal fees, and advice fees. These can add to the overall cost of the plan and should be factored into your decision-making process.
• Long-Term Commitment: Equity release is a long-term financial commitment. Once you have taken out a plan, it can be difficult and costly to reverse the decision. This lack of flexibility can be a drawback if your circumstances change.
• Property Value: If the value of your property decreases, the amount of equity you can release may be lower than expected. This can impact your financial planning and the amount of money available to you.

These factors highlight the importance of thoroughly researching and considering all aspects of equity release before making a decision.

How Can You Apply for Key Equity Release?

To apply for Key equity release, first contact Key for a consultation, then have your property and financial situation evaluated.

What Steps Are Involved in Applying for Key Equity Release?

To apply for Key equity release, begin by scheduling a consultation with a financial advisor who specializes in equity release; they will assess your needs and explain how the various options can fit into your retirement plan. 

Following this initial consultation, you will need to select the specific Key product that suits your financial goals and complete an application form provided by Key.

What Documents and Information Do You Need?

You will need to provide several documents during the application process.

These may include proof of your identity, proof of residence, details of your current mortgage if applicable, and documentation of your financial situation such as bank statements and income verification. 

Additionally, an appraisal of your property will be necessary to determine the amount of equity available for release. 

Ensure all documents are up to date and accurately reflect your financial status to streamline the application process.

Key’s Other Later-Life Options

Key’s other later-life lending options include retirement interest-only (RIO) mortgages and retirement repayment mortgages.

Retirement Interest-Only Mortgages

A retirement interest-only (RIO) mortgage is a home loan for people aged 55 and over.

This kind of mortgage allows you to pay monthly interest without reducing the capital borrowed, which is repaid only when you sell your home, move into care, or pass away.

Important

Designed for older borrowers who may struggle to qualify for standard mortgages, RIO mortgages require proof that you can afford the monthly interest payments.

Key Features

Key features of RIO mortgages include the fact that they require monthly interest payments.

Other features of Key’s RIO mortgages include:

• Borrowers must be over 55.
• Repayment of the loan is deferred until a major life event, such as selling your home or entering care.
• Options include fixed or variable interest rates, each with its own benefits and drawbacks.
• Costs include solicitor’s fees, surveyor’s fees, and a £1,299 advice fee when the mortgage completes.

Benefits of Key’s RIO Mortgage

Benefits of Key’s RIO mortgage include the opportunity to limit the size of your debt by making mandatory monthly interest payments.

Other benefits:

• Unlock funds to pay off debt or gift an inheritance early.
• Avoid downsizing while accessing property wealth.
• Potential to repay the mortgage early (though charges may apply).

Drawbacks of Key’s RIO Mortgage

Drawbacks of Key’s RIO mortgage include the fact that monthly interest payments are required.

Other drawbacks:

• Affordability checks are required to secure the loan.
• Your home will typically be sold to repay the loan when you enter care or pass away.
• Risk of repossession if repayments aren’t maintained.

Retirement Repayment Mortgages

Retirement repayment mortgages are loans secured against your property, designed for borrowers aged 50 and over.

Unlike a retirement interest-only (RIO) mortgage, a retirement repayment mortgage involves monthly repayments of both the capital and interest, ensuring the loan is fully repaid by the end of the agreed term.

Key Features

Key features of Key’s retirement repayment mortgage include the requirement that capital and interest payments be made until the loan is repaid.

Other features:

• Available to homeowners aged 50+.
• Flexible loan terms tailored to your needs.
• Can be used to purchase a new property, re-mortgage an existing one, or release additional funds.

Benefits of Key’s Retirement Repayment Mortgage

The main benefit of Key’s retirement repayment mortgage is its lower overall costs.

Other benefits:

• Repayment of the loan by the end of the term allows you to pass on more property wealth to beneficiaries.
• Overall borrowing costs are lower compared to an RIO mortgage due to the full repayment structure.
• Provides a clear end date, offering financial stability for the future.

Drawbacks of Key’s Retirement Repayment Mortgage

One of the drawbacks of Key’s retirement repayment mortgage is its mandatory monthly principal and interest repayments.

Other drawbacks:

• Monthly repayments are higher than with a retirement interest-only mortgage.
• Suitability depends on your financial circumstances and ability to meet repayment commitments.
• Your home may be repossessed if repayments are not maintained, so careful consideration is essential before securing the loan.

What Are the Alternatives to Key Equity Release and Later-Life Loans?

Alternative options to Key equity release include downsizing, other types of loans, or different equity release schemes that might better suit different financial situations.

Beyond these, further alternatives you might consider include:

• Remortgaging: If you have significant equity in your home, you might be able to remortgage to release some of that equity. This can be a more cost-effective way to access funds, especially if you can secure a lower interest rate.
• Personal Loans: Depending on your financial situation, taking out a personal loan might be a viable option. This can provide the funds you need without affecting your home ownership, though it will require regular repayments.
• Savings and Investments: Using your savings or liquidating investments can be a straightforward way to access funds. This option avoids the costs and complexities of borrowing but may impact your long-term financial security.
• Family Assistance: Some people turn to family members for financial support. This can be a flexible and interest-free way to access funds, though it requires open and honest communication about repayment terms and expectations.

These alternatives can provide different ways to access funds without the need for equity release, each with its own advantages and considerations.

It’s important to evaluate your options carefully and seek professional advice to determine the best solution for your circumstances.

Common Questions on Key’s Equity Release Advice

Key Equity Release in Brief

Key equity release provides homeowners with a way to unlock the value of their property without selling their home. These plans are particularly beneficial for retirees looking to supplement their income, cover unexpected costs, or enhance their lifestyle while maintaining financial security.

With Key’s options, you can choose a solution tailored to your needs, whether that’s a lump-sum payment or a drawdown facility. These flexible plans help you manage debts while potentially preserving more of your estate for future generations.

Before proceeding, it’s essential to consult a financial adviser to fully understand the implications, such as the impact on means-tested benefits and the long-term costs. This ensures your decision aligns with your financial goals and personal circumstances.