Are you considering Key equity release to unlock the value of your home in retirement? It could be the key to a more comfortable financial future, but with so many options available, how do you know if it’s the right choice for you?

In Q2 of 2023 alone, over £664 million in equity was released, proving just how popular this financial option has become;¹  however, with so much at stake, finding the right provider and securing expert advice is crucial to ensure you maximise your borrowing potential.

In this comprehensive review, we’ll dive deep into Key's equity release, comparing it to other providers in the market to help you make an informed decision.

Our expert financial team at BankingTimes brings you unbiased insights and the latest industry knowledge, so before you take the plunge, make sure you’re fully equipped with all the facts!

Let’s check out whether Key equity release is the right fit for your retirement plans...

STATEMENT: BankingTimes is a separate third-party information provider and therefore not related to Key, and the information replicated in this section represents the interpretations of BankingTimes only and not the opinions of Key. This piece does not constitute advice, or an incitement to enter any services or products provided by Key.

Does Key Advise on Equity Release?

Yes, Key does advise on equity release offering expert guidance, serving as an equity release broker, and providing advice on lifetime mortgages.

As a leading equity release adviser and part of the Key Group, a financial services company that specialises in later-life lending solutions, Key provides personalised recommendations based on individual financial circumstances.

The company ensures that all advice complies with Equity Release Council (ERC) standards, prioritising customer protection and transparency.

What Are Key Later-Life Finance's Product Offerings?

Key Later Life Finance's product offerings include lifetime mortgages, home reversion plans, and later-life financial advice.

As a specialist in equity release, Key primarily provides lifetime mortgages, allowing homeowners 55 and older to access tax-free cash from their property while retaining ownership.

Let's look at what Key has to offer:

Key’s Expertise in Later-Life Financial Solutions

Key Later Life Finance specialises in a variety of financial services designed to support homeowners in later life.

Its areas of expertise include: 

• Releasing Equity
• Home Loans
• Testamentary Wills
• Lasting Power of Attorney (LPAs)
• Asset Management and Planning

Alternative Retirement Financial Solutions by Key

Alternative retirement financial solutions by Key include estate planning, retirement mortgages, and later-life financial advice.

Here are your options:

Retirement Mortgages

Retirement mortgages are designed for people aged 55 and over who want to buy a new home or remortgage their existing one.

Retirement mortgages can help you:

• Move to a more suitable home for your lifestyle or needs
• Release some of the equity in your home to boost your income or fund other expenses
• Consolidate your debts into one manageable monthly payment
• Reduce your monthly outgoings by switching to a lower interest rate or a longer term

Estate Planning Services

Estate planning services help you protect your assets and pass them on to your loved ones in the most tax-efficient way possible. 

These include:

• Wills: A legal document detailing estate distribution after death, appointing child guardians, naming estate executors, and indicating funeral wishes.
• Lasting Powers of Attorney (LPAs): A legal tool appointing individuals to decide for you if mental capacity is lost. There are LPAs for financial affairs and health/welfare.
• Trusts: A legal mechanism to transfer assets to a trustee for beneficiaries. Trusts can reduce inheritance tax, shield assets, and support vulnerable relatives.

Expert Guidance on Key Later Life Finance's Range of Products

Expert guidance on Key Later Life Finance's range of products ensures that homeowners receive tailored advice on equity release, estate planning, and financial management.

Here's what they have to offer:

Professional Advice on Equity Release Options

Professional advice on equity release options helps homeowners understand the benefits and risks of accessing property wealth in later life.

With a focus on transparency and regulatory compliance, professional advisers help retirees choose the most suitable option for their long-term needs.

Additionally, its advisers streamline the application process, liaise with relevant parties, and keep clients updated on their equity release plans.

Exploring Alternative Financial Solutions

Exploring alternative financial solutions offers homeowners and retirees a variety of options beyond traditional retirement savings and equity release; solutions include retirement interest-only mortgages and asset management services.

Clients are navigated through numerous alternative financial solutions, while advisers meticulously assess individual requirements and future goals, comparing rates and features of different products and providers to secure the best fit. 

Customised Recommendations Based on Client Needs

Customised recommendations based on client needs ensure that each individual receives financial advice tailored to them, their financial standing, and preferences.

By assessing factors such as age, property value, and financial aspirations, advisers present a spectrum of suitable options, explaining each's pros and cons, and provide a personalised report summarising the recommendations and underlying rationale. 

Respecting clients' autonomy and confidentiality, its advisers ensure a pressure-free experience and uphold stringent privacy standards.

Key Advice Costs for Equity Release

Key advice costs for equity release typically include an initial consultation fee, followed by charges for any ongoing advice or support—clients need to clarify any potential fees upfront to ensure complete transparency in the process.

The exact cost can vary depending on the complexity of the case and the services provided, such as personalised recommendations, product comparison, and application assistance.

Look at the cost considerations:

Interest Rates

Key interest rates for equity release products depend on the specific plan and the client’s circumstances; generally, Key offers competitive fixed interest rates for lifetime mortgages, which remain the same throughout the life of the loan.

These rates are designed to reflect market conditions and are typically higher than traditional mortgage rates, as they account for the risk involved in lending to older homeowners.

Key offers attractive equity release products with competitive interest rates, working with renowned lenders like Aviva, Legal & General, and Canada Life Equity Release. 

Fees

Key fees for equity release products may include an arrangement fee, legal fees, and valuation fees, which vary depending on the specific plan and the complexity of the case.

Some of these fees may be added to the loan amount, and clients need to clarify all costs upfront to ensure full transparency throughout the process and eliminate any hidden costs. 

These fees can often be paid upfront or added to the loan amount but your adviser will explain each fee’s impact on the loan and equity, providing a personalised illustration for clarity.

Fees during the equity release process include:²

• Advice Fee: £899, payable if proceeding with a recommended plan.
• Application Fee: Varies, typically £0 to £695, charged by the lender for processing.
• Valuation Fee: Typically between £150 to £600, for property valuation by the lender.³
• Solicitor Fee: Around £1,250, covering legal aspects.
• Completion Fee: Varies and is charged by the lender upon completion.

What Is Key Later Life Finance’s Commitment to Customer Satisfaction?

Key Later Life Finance’s commitment to high-quality customer satisfaction is reflected in its personalised approach to equity release and financial advice.

Let's take a look at the feedback and reviews:

What Is the Customer Satisfaction Rating for Key Equity Release?

The customer satisfaction rating for Key Equity Release is generally positive, with many customers praising its clear advice, supportive service, and straightforward application process.

Reviews highlight the company's expertise in equity release and its commitment to customer care; however, some clients have expressed concerns about interest rates and the long-term cost of equity release plans.

Independent review platforms, such as Trustpilot, typically show Key Equity Release with a strong rating, reflecting overall customer confidence in its services.

Transparent and Fair Practices

Maintaining transparency and fair practices is paramount when fostering trust with clients; adhering to the stringent standards set by the FCA and ERC, clear and accurate information about products, including benefits, risks, costs, and alternatives, is provided. 

Clients receive a personalised illustration showing the long-term financial impact, and with no charges for initial consultations or quotations, a fixed advice fee is only applied if a recommended equity release plan is pursued. 

Additionally, a no-negative-equity guarantee ensures clients' best interests are always protected.

Award-Winning Customer Service

The company has won several awards for its customer service and satisfaction over the years. 

Some of these awards are:⁴

• Best Equity Later Life Broker - Financial Reporter 2022
• Best Equity Release Adviser - Personal Finance Awards 2022
• Best Equity Release Broker - MoneyAge Awards 2021

These awards reflect its dedication to providing excellent customer service and satisfaction.

Key Equity Release Reviews

It has received positive reviews from its customers on various platforms, such as Trustpilot.

Some of the common themes in these reviews are that its advisors:

• Are friendly, professional, knowledgeable, and helpful.
• Provide clear and honest advice on equity release and other financial solutions.
• Listen to customers’ needs and preferences and tailor their recommendations accordingly.
• Explain the benefits and risks of equity release and other financial solutions in simple terms.
• Guide customers through the application process and keep them updated on the progress.

Key Equity Release Complaints

Customer complaints are addressed promptly and effectively, demonstrating its commitment to customer satisfaction.

With a dedicated complaints team that investigates any issues or concerns raised by customers, it tries to resolve them as quickly as possible.

If customers are not satisfied with the response or resolution, they can escalate their complaint to the Financial Ombudsman Service (FOS)⁵ for further review.

Is Key Safe and Regulated?

Yes, it operates as a secure and regulated provider of equity release products and services in the UK, adhering to guidelines set by the Financial Conduct Authority (FCA) and maintaining membership with the Equity Release Council (ERC).

Let us see what that means for you. 

Is Key Regulated by the Financial Conduct Authority (FCA)?

Yes, it is regulated by the Financial Conduct Authority (FCA), the UK’s regulatory body for financial services, ensuring compliance with set standards and rules, such as providing clear information and treating customers fairly.

The FCA monitors and supervises providers, offering protection against fraud and mis-selling by taking enforcement actions as necessary. 

Is Key a Member of the Equity Release Council (ERC)?

Yes, as a dedicated member of the Equity Release Council (ERC), it upholds the highest industry standards set by this leading UK trade body. 

The ERC not only represents the interests of all key players in the equity release sector but also mandates core principles, like offering a no-negative-equity guarantee and permitting customers to relocate homes without penalties.

Pros and Cons of Equity Release with Key Later Life Finance

Equity release with Key has its advantages, such as competitive rates and expert advice, but it is essential for potential clients to weigh these against any cons, like the impact on inheritance.

Here are some more advantages to consider:

• Clients can select the amount and method of receiving funds, with lump sum or drawdown options available.
• A portion of the home’s value can be safeguarded for beneficiaries.
• No-Negative-Equity Guarantee ensures you will never owe more than your home’s value.
• Its advisers provide insightful guidance and help navigate the application process.
• Collaboration with reputable lenders ensures competitive rates and flexibility.

Here are some disadvantages that should not be ignored: 

• Equity release often has higher interest rates compared to other loans, leading to increased long-term costs and reduced home equity.
• Releasing cash can affect eligibility for means-tested benefits like pension credit and council tax reduction.
• The increased income or assets from equity release can alter tax positions, potentially affecting personal allowances and liability.
• Equity release decreases the equity in the home, limiting the inheritance available for beneficiaries and possibly insufficient to cover additional expenses.
• Reduced home equity may limit future borrowing, make moving or selling challenging, and potentially incur early repayment charges.

Is There an Equity Release Calculator?

Potential clients can use an equity release calculator on its website to estimate the amount they can release from their property. 

This tool considers factors such as age, health, and property value, providing a general guide rather than a personalised illustration or quote. 

For accurate assessments and advice tailored to individual needs, circumstances, and goals, clients should consult with a professional adviser.

Where Is Key Later Life Finance Located?

It is located in the UK and serves customers across the country.

Areas Serviced

Its services are offered to customers in all areas of the UK.

It has a network of local advisers who can visit customers at their homes or at a local branch for a free consultation. It also offers phone consultations for customers who prefer remote services.

Branches

With several branches across the UK, customers can visit for a face-to-face consultation with an adviser. 

Branches are located in:

• Leeds
• Preston
• Stanmore

Key Equity Release Address (Head Office)

The head office address is:

Key Group Limited Baines House 4 Midgery Court Fulwood Preston PR2 9ZH

Contact Key

If you want to get in touch for any reason, such as booking a free consultation, requesting a quote or making a complaint, you can do so by using the following contact details:

Email Address

You can send an email to info@keyadvice.co.uk. 

You can also use the online contact form on its website

Customer Support Services

You can call customer support services on 0800 531 6027. 

The lines are open from Monday to Friday, 9am to 5:30pm.

You can also write to the customer support services at:

Customer Support Services Key Group Limited Baines House 4 Midgery Court Fulwood Preston PR2 9ZH

Key FCA Details

Key is authorised and regulated by the Financial Conduct Authority (FCA) under the firm reference number 224987.⁶ 

This means that it meets the FCA’s standards and rules for providing equity release products and services in the UK.

How Did We Review Key Later Life Finance?

We conducted a comprehensive analysis of the company’s offerings, services, and customer feedback. 

We scrutinised its range of equity release products, interest rates, and fee structures, and examined its adherence to industry regulations and standards. 

Furthermore, we considered customer testimonials and third-party reviews to gauge user satisfaction and trustworthiness. 

This holistic approach ensured a balanced and thorough review of the overall performance and customer experience.

BankingTimes operates as an independent third-party information website. The perspectives expressed in this article are solely ours and may not necessarily align with the views or opinions of Key equity release.

Common Questions

Conclusion

As a reputable provider in the equity release sector, Key offers a variety of services and demonstrates a strong commitment to customer satisfaction. 

With access to a diverse panel of lenders, it provides competitive rates and flexible features tailored to varied needs and preferences. 

Upholding transparent and fair practices, the company has earned positive reviews and testimonials across various platforms, attesting to its high-quality customer service.

If you are exploring bespoke solutions, considering Key equity release could be worth your while.