Standard Life have partnered with Key Retirement Solutions Ltd to provide equity release information and tools. Standard Life Equity Release is a trading name of Key Retirement Solutions Ltd, which is authorised and regulated by the Financial Conduct Authority.

What is equity release and how does it work?

Equity release is a way for homeowners to unlock some of their home’s value in the form of tax-free cash. 

Whether it’s to repay existing debts, pay off an existing mortgage, or help financially support your loved ones when they need it most, equity release may be the perfect way to help boost your finances in later life. 

The most popular type of equity release is a lifetime mortgage. A lifetime mortgage is a loan secured against your home. 

By taking out a lifetime mortgage, you can access some of the value tied up in your property while retaining full ownership of your home and escaping monthly repayments. 

That’s because, typically with a lifetime mortgage, there are no monthly repayments for you to make - unless you choose to - as the loan, plus compound interest, is repaid when your plan ends. 

You could be eligible for one of our lifetime mortgages if you’re a homeowner aged 55-84 with a property worth at least £99,000 looking to borrow between £10,000 and £1.5 million. The release amount is dependent on your personal circumstances.

Facts about equity release

  • It's regulated
  • Equity release is regulated by the Financial Conduct Authority (FCA).

  • It can't leave your loved ones in debt
  • All our plans meet Equity Release Council standards and come with a no negative equity guarantee. That means you can never owe more than your home’s worth or pass on any debt to your family through equity release.

  • You need advice
  • Before you go ahead, it’s a regulatory requirement that you receive qualified equity release advice to ensure it’s suitable for your wants, needs and circumstances.

What you should consider before going ahead

If you believe equity release could be a suitable later life solution for you, we can introduce you to Modern Lending Advisers, who we’ve carefully selected to provide free, expert equity release advice. Modern Lending Advisers’ free advice relates to Standard Life Home Finance’s range of lifetime mortgages.

You’ll be assigned a dedicated adviser who can speak to you in person in your home, over the phone or online - whichever you prefer. 

They’ll talk you through equity release and ensure you've considered other financial options - such as downsizing and other forms of borrowing - and give you all the information you need to make a decision. 

There’ll never be any pressure for you to go ahead. The adviser’s role is to simply ensure you have all the facts so you can make an informed choice. Whether you choose to take advantage of some of your home’s value through equity release or not is always your decision to make in your own time. 

Before you decide, your adviser will explain how equity release will reduce the value of your estate and may affect your entitlement to means-tested benefits.

They’ll also make you aware that your lifetime mortgage is typically repaid through the sale of your property at the end of your plan, which is usually when the last remaining applicant either passes away or moves into long-term residential care. 

Modern Lending Advisers will never charge you for any of their equity release advice or support. It’s always completely free.

Alternative options

Before going ahead with a lifetime mortgage, you should consider the alternatives.

 

  • Home reversion
  • A home reversion plan is another form of equity release where you sell all or part of your home to a reversion company for a cash lump sum. You won’t legally own your home anymore and you’ll get less than market value for the share you sell. But you also won’t face any interest charges and you can live in the property rent-free for as long as you like.

    Modern Lending Advisers advice is restricted to Standard Life Home Finance plans, which are lifetime mortgages, and do not provide advice on Home Reversion products.

  • Mortgage
  • A standard mortgage could be a cheaper alternative to a lifetime mortgage in the long run. However, bear in mind that most mortgages include affordability and credit checks, as well as monthly repayments. Remember a mortgage is secured against your home. Your home may be repossessed if you do not keep up repayments on your mortgage.
     

  • Retirement interest-only mortgages (RIOs)
  • A retirement interest-only mortgage is a conventional mortgage available to over 55s where your monthly repayments cover the interest of the loan. The capital is then repaid through the sale of your property at the end of your plan when you, or the last remaining applicant, either passes away or moves into long-term care.

    Your home may be repossessed if you do not keep up repayments on your mortgage.

  • Annuities
  • An annuity is a guaranteed, regular income that you buy, sometimes using your pension savings when you retire.

  • Seeking financial help
  • If a family member or someone you trust has the means to offer you a financial gift or loan, it may be better to ask them first.They’ll usually be more than happy to help.

  • Claiming benefits
  • Ensure you’re claiming any benefits you’re entitled to. Your Modern Lending Advisers equity release adviser will be able to check what you’re eligible for and explain how equity release could affect your entitlement to means-tested benefits. 

  • Savings or investments
  • Before you take out equity release, you should always consider using any savings or investments you have first. However, also think about if you’ll need them later down the line.

  • Downsizing
  • If you’re open to selling your home and moving, downsizing to reduce costs can be a great way to access funds in later life. Although, it’s important to remember that moving home can be a stressful, costly and time-consuming process.

Find out more about equity release

If you'd like to know more about equity release, we have free tools that can help.

Things to consider
  • A lifetime mortgage is a loan secured against your home. It will reduce the value of your estate and may affect your entitlement to means-tested benefits.
  • All of our plans meet the Equity Release Council standards and come with several protections, including the no negative equity guarantee, which means you’ll never owe more than your home’s value.
  • You should always think carefully before securing a loan against your home.
  • The equity release advice you receive relates to Standard Life Home Finance’s lifetime mortgages and is completely free of charge. So, you can find out if it’s right for you without it costing you a penny.

Standard Life Equity Release is a trading name of Key Retirement Solutions Ltd. Registered in England No 02457440. Registered Office: Baines House, 4 Midgery Court, Fulwood, Preston PR2 9ZH. Equity release content and financial promotions have been provided and approved by Key Retirement Solutions Ltd who are authorised and regulated by the Financial Conduct Authority. Any personal data provided on this page will be shared with Key Retirement Solutions Ltd who will use the information to contact you about your enquiry.

Businesses in the Phoenix Group will receive a financial benefit from businesses in the Key Group from the sale of each Lifetime Mortgage or other financial benefits where a customer uses any service provided by businesses in the Key Group typically up to a maximum of 3.65% of the value of the loan or up to 20% for services provided to each customer.

Key Retirement Solutions Ltd uses the Standard Life brand under licence from Standard Life Assets and Employee Services Limited. The Standard Life name, logo and domain are registered trademarks of Standard Life Assets and Employee Services Limited.