Equity release has become an increasingly popular option for UK homeowners aged 55 and over who wish to unlock the value tied up in their homes without having to move. Among the providers operating in this space, Key Later Life Finance stands out as a specialist firm dedicated exclusively to later-life lending.

Formerly known as Key Equity Release, the company rebranded in 2022 to reflect a broader commitment to retirement-focused financial solutions and to improve consumer understanding of equity release products in the UK².

Unlike high street banks that may offer equity release as part of a wider mortgage portfolio, Key focuses solely on lifetime mortgages, a type of equity release regulated by the Financial Conduct Authority (FCA) and underpinned by the standards of the Equity Release Council.

In this article, we examine what Key offers, how its products compare within the UK equity release market, and what you should consider before choosing a provider.

This guide has been independently researched and fact-checked to provide transparent, up-to-date information for retirement planning.

Therefore:

NOTE: EveryInvestor is an impartial and unconnected third-party information provider via this website, and the details replicated in this commentary represent the opinions of EveryInvestor only and may not reflect the views or opinions of Key Later Life Finance. This article must not be interpreted as advice, nor is it a solicitation to conduct transactions in any financial product provided by Key Later Life Finance.

How Does Equity Release Work in the UK?

Equity release allows homeowners aged 55 and over to access a portion of their property’s value through lifetime mortgages or home reversion plans, while continuing to live in their home.

1. Lifetime Mortgages

• Most common option in the UK³.
• You retain full ownership but take out a secured loan against your home; there is no requirement to repay interest monthly, though voluntary payments are allowed to manage roll-up costs⁴.
• The loan plus interest is repaid when the home is sold, usually after the homeowner’s death or permanent move into care.
• Includes a no-negative equity guarantee, ensuring your estate will never owe more than the sale value of the property.

Read On: Why Lifetime Mortgages are Popular in the UK

2. Home Reversion Plans

• Far less common, accounting for only a small share of equity release products.
• You sell part or all of your home to a provider in exchange for a lump sum or regular payments, while keeping the right to live there rent-free for life .
• The sale price is usually discounted, meaning you receive less than market value. When the property is sold, the provider receives their share.

Read On: Exploring Home Reversion Schemes in the UK

3. UK Equity Release Market Trends

• Lifetime mortgages dominate the market, with 56 percent of new customers opting for drawdown plans in Q1 2024, the highest proportion on record⁵.
• In Q1 2025, lenders issued 5 620 new lifetime mortgages worth £530 million, marking an 11 percent increase in count and 40 percent increase in value year‑on‑year⁶.

4. Key Considerations for UK Homeowners

Factor	Why It Matters
Age and Property Value	Lenders base eligibility and maximum borrowable amount primarily on your age and the property’s market value.
Interest Rates & Roll‑Up	Fixed-for-life interest rates (typically between 5% and 9%) mean compound interest can significantly increase the loan over time unless voluntary interest payments are made7.
State Benefits & Inheritance	Equity release can affect means-tested benefits and reduce inheritance value, advisory services must fully explain these effects .
Regulatory Safeguards	UK offerings are regulated by the Financial Conduct Authority (FCA) and reinforced by Equity Release Council (ERC) standards, including legal advice requirements and the no-negative equity guarantee.

Lifetime mortgages are the dominant form of equity release in the UK, offering flexibility without monthly repayments but potentially leading to significant interest accumulation.

Although less common, home reversion plans offer an alternative. The market is recovering strongly post-2023, supported by clear regulatory frameworks that prioritise transparency and consumer protection.

Who Is Key Later Life Finance?

Key Later Life Finance is a specialist provider focused exclusively on later-life lending for UK homeowners aged 55 and over. Unlike broader mortgage providers, it zeroes in on lifetime mortgages, retirement interest-only mortgages, and other services tailored for retirement planning.

Company Overview

• Originally founded in 1998, Key Equity Release rebranded to Key Later Life Finance in March 2022, emphasising its broader suite of services, including equity release, retirement interest-only mortgages, wills, lasting power of attorney (LPAs), and estate planning support⁸.
• As a dedicated later-life specialist, the firm offers FCA-regulated advice and sources products across the entire market, not limited to its own, ensuring impartial recommendations.

What Key Offers

Service	Details
Lifetime Mortgages	The only equity release product Key arranges directly, with options for partial repayments and inheritance protection.
Retirement Interest‑Only Mortgages	Traditional mortgages for homeowners aged 50+, allowing monthly interest payments to maintain estate value.
Estate Planning	Assistance with wills, LPAs, trusts, and living wills, organised by Key’s specialist team.

Specialist Focus with Experience

• Over 1 million customers have used Key’s later-life finance services, earning the firm more than 80 industry awards and a Trustpilot 'Excellent' rating from over 17,000 reviews⁹.
• By concentrating solely on later-life needs, Key develops deep expertise in areas such as inheritance preservation, means-tested benefit impact, and plan flexibility.

What Lifetime Mortgage Products Does Key Offer?

Key Later Life Finance specialises in arranging several types of lifetime mortgages, all tailored to help homeowners aged 55 and over access tax‑free cash while retaining ownership of their property.

Here is a breakdown of their core offerings:

1. Standard Lifetime Mortgage

• Offers a single tax-free lump sum secured against the home.
• No mandatory monthly repayments, allowing interest to cumulate, unless voluntarily repaid.
• Includes a no‑negative‑equity guarantee, ensuring the debt will never exceed the property’s value at sale.

2. Interest‑Payment Lifetime Mortgage

• Clients have the option to make monthly interest payments (typically from around £25), reducing overall loan growth.
• This helps manage long-term interest costs while preserving the capital sum.

3. Drawdown or Reserve‑Facility Lifetime Mortgage

• Provides a smaller initial sum, with the ability to access further funds as required from a preset reserve.
• This flexibility reduces unnecessary interest charges since you only pay interest on the funds you withdraw .

4. Payment‑Term Lifetime Mortgage

• Designed for clients aged 55 to 62, this option requires fixed minimum monthly repayments up to the age of 66.
• This hybrid model offers predictable repayments and helps limit interest accumulation.

Common Features Across All Products

• Availability requires a property value of at least £70 000, based on UK lender criteria¹⁰.
• Clients can opt for inheritance protection, which allows a proportion of the home’s value to be ring-fenced for heirs; this feature may affect the maximum amount you can borrow.
• Downsizing protection kicks in after five years, allowing borrowers to move without early repayment charges even if the new home does not qualify under the original criteria¹¹.

Key provides a suite of lifetime mortgage options that balance flexibility, control over interest growth, and inheritance protection. These products can be tailored to individual needs, whether you prefer lump sum access, staged withdrawals, or structured repayments.

Does Key Provide Retirement Mortgage and Estate Planning Advice?

Yes. In addition to lifetime mortgages, Key Later Life Finance offers retirement interest-only mortgages and comprehensive estate planning services tailored to homeowners aged 50+.

1. Retirement Interest-Only Mortgages (RIOs)

• Key advises clients aged 50 and over on retirement interest-only mortgages, a product that allows monthly interest payments without reducing the principal.
• These mortgages are suitable for borrowers who can cover monthly interest but prefer to preserve their estate.
• They can be used to:
  • Release equity while maintaining control of the property
  • Make large gifts, help family, or fund retirement plans
  • Manage existing debts, such as clearing high-interest credit cards

2. Estate Planning Services

Key’s estate planning encompasses more than wills; it supports you in structuring your future beyond basic inheritance:

• Wills – Ensure your estate is distributed according to your wishes
• Lasting Power of Attorney (LPA) – Allows you to appoint someone to manage financial or health matters if you are unable
• Trusts – Can protect assets for heirs, shield from divorce or bankruptcy, and manage tax liability
• Living Wills – Document end-of-life healthcare preferences according to your wishes

These services are provided during a free consultation, where Key’s advisers help you understand which elements best suit your circumstances.

Value of Combined Advice

By offering both RIO mortgages and estate planning, Key enables clients to:

• Maximise equity access while managing monthly cash flow
• Protect assets and inheritance through legal structures
• Plan for incapacity or death with tools like LPAs and living wills
• Navigate state benefits and tax implications with expert advice

This combination of later-life mortgage solutions and estate planning underscores Key’s role as a comprehensive retirement adviser. It supports financial strategy and legacy planning as homeowners transition into their later years.

Is There an Equity Release Calculator on Key’s Website?

Yes, Key Later Life Finance provides intuitive, free calculators on its website to help homeowners aged 55 and over estimate how much tax‑free cash they can raise from their homes through lifetime mortgages.

Features of Key’s Calculator

1. Easy to Use
   • Enter your age, property's current market value, and any outstanding mortgage to receive an instant, no-obligation estimate of available equity.
   • Requires minimal input and displays results in seconds.
2. Accurate Benchmark
   • As of Q1 2025, the average amount released via Key's lifetime mortgage calculator was £91,819.
   • You can release from £10,000 minimum, making it realistic for typical later-life homeowners¹².
3. Built-In Safeguards
   • Eligibility checks, including minimum property values (usually £70,000) and age (55+), are included to prevent inaccurate quotes¹³.
   • The tool offers explanations for optional features like inheritance protection and staged drawdowns.

Why Use the Calculator?

• Plan Retirement Cash Flow: It helps users visualise immediate and long-term options, such as receiving lump sums or staged withdrawals.
• Compare Strategies: Using the calculator's “repayment mode”, you can model how interest payments affect the total cost compared to no monthly payments.
• Quick Financial Insight: Ideal for preliminary decision-making before engaging a qualified adviser.

Calculations provide estimates only and do not replace full personalised advice. For exact figures, especially involving inheritance goals, benefit eligibility, or complex repayment scenarios, advice from a regulated financial adviser is essential.

Key’s equity release calculator is a practical first step for homeowners to assess financial options and plan their retirement. It reflects real results (over £90k average in Q1 2025) and supports informed discussion with an adviser.

What Are the Costs and Interest Rates of Key’s Equity Release Plans?

Key Later Life Finance offers lifetime mortgages with fixed interest rates and a transparent fee structure. Understanding both components is critical for homeowners considering equity release, as costs will directly affect long-term affordability, estate value, and intergenerational wealth transfer.

Interest Rates

As of July 2025, Key's lowest available fixed interest rate is 6.29% AER, while the average customer rate is approximately 7.13% AER, based on typical product configurations and eligibility¹⁴. These rates are fixed for the duration of the plan, offering borrowers long-term certainty. However, because interest compounds over time, the total amount repayable can increase substantially if no repayments are made.

To help control this growth, Key allows voluntary repayments of up to 10%–12% of the original loan amount per year without incurring early repayment charges. This flexibility can significantly reduce the interest accrued and protect more of the estate for beneficiaries.

Cost of Setting Up a Lifetime Mortgage

In addition to interest, borrowers must account for professional and administrative fees associated with establishing the mortgage. These fees are broadly consistent across the equity release market but may vary slightly based on the lender, property type, and legal complexity¹⁵.

Cost Item	Estimated Range	Details
Advice Fee	£1,699	Payable only if the client proceeds with a Key-arranged lifetime mortgage
Valuation/Survey Fee	£200 – £500	Depends on property type and location
Legal/Solicitor Fee	£860 – £1,000	Covers conveyancing, regulatory checks, and disbursements
Application/Arrangement Fee	£300 – £1,000	Charged by the lender to establish the product
Optional Product Features	Varies	Some plans may charge for inheritance protection or drawdown configuration
Total Typical Costs	£1,500 – £3,000	Partial fee waivers may apply when Key acts as a broker for another lender

Some of these fees, particularly the application and valuation charges, may be waived if Key brokers your lifetime mortgage through a third-party provider. However, these reductions are case-specific and should be confirmed during your financial consultation.

Managing Long-Term Costs

Clients who opt for Key’s interest-payment lifetime mortgage can elect to make monthly interest payments, helping to limit or entirely prevent the loan balance from increasing. For homeowners with sufficient disposable income in retirement, this approach can result in considerable long-term savings compared to the standard roll-up model.

Regardless of repayment strategy, the compounding nature of equity release means that total debt can increase quickly if left unmanaged. For this reason, it is essential to obtain a personalised illustration before proceeding. This illustration will show the projected loan balance under different scenarios, both with and without repayments.

The total cost of an equity release plan from Key includes a combination of interest charges and setup fees, with flexible repayment options available to help manage long-term affordability. While Key’s interest rates are fixed for life, their impact depends heavily on whether repayments are made. All applicants should ensure they understand not only the interest rate itself, but how it compounds over time, and what the final repayment could look like.

A regulated financial adviser will provide a detailed, personalised breakdown of expected costs and will help you assess the long-term implications for your estate and retirement planning objectives.

Is Key Later Life Finance Regulated and Safe to Use?

Key Later Life Finance is a fully regulated and safe choice for equity release and later-life lending.

Here’s why:

FCA Regulation

Key’s firm, registered as Key Retirement Solutions Ltd, is authorised and regulated by the Financial Conduct Authority (FCA) under reference number 224987.

This ensures that Key must comply with strict rules governing transparency, fair treatment of customers, appropriate product recommendations, and effective complaints handling.

They must also follow the Consumer Duty framework, introduced by the FCA in July 2023, which mandates treating customers fairly and supporting their long-term outcomes¹⁶.

Equity Release Council Membership

Key is a longstanding member of the Equity Release Council (ERC), the UK’s main trade body for equity release providers and brokers. ERC membership commits firms to go beyond regulatory compliance by adhering to voluntary standards including:

• A mandatory no-negative-equity guarantee, ensuring borrowers and their estates never repay more than the property’s sale value.
• Requirement to provide independent legal advice.
• Permission for property downsizing after five years without early repayment charges.

These protections contribute to making lifetime mortgages more transparent and safer for customers.

Key’s combined FCA authorisation, ERC membership, and adoption of Consumer Duty safeguards demonstrate a robust commitment to consumer protection and ethical business practices.

What Are the Pros and Cons of Equity Release with Key?

Here’s a concise expert overview of the advantages and disadvantages of using Key Later Life Finance for equity release.

Each point is supported by UK-based sources to help you make an informed decision.

Advantages of Equity Release with Key

• Specialist Experience
  Key has been operating in the equity release sector since 1998 and now holds a strong position, earning high Trustpilot scores (4.8/5 from over 17,000 reviewers) and multiple industry awards¹⁷. Their long-standing presence reflects a deeply rooted understanding of later-life lending.
• Tax-Free Cash Without Selling Your Home
  You receive funds tax-free and continue to live in your property. This flexibility makes lifetime mortgages a useful tool for covering expenses such as home improvements, supplementing retirement income, or helping family financially.
• Fixed Interest Rates and No-Negative-Equity Guarantee
  Interest rates are fixed for the life of the loan, ensuring predictable repayment amounts. ERC membership guarantees that you won’t owe more than the eventual sale value of your home even if prices drop.
• Flexibility Through Optional Repayments and Drawdown
  Key offers options such as interest-payment plans and drawdown facilities. These allow borrowers to manage interest roll-up and tailor withdrawals, potentially reducing long-term costs.

Disadvantages to Consider

• Compound Interest Can Substantially Increase Total Debt
  Interest compounds monthly, and with fixed rates typically between 6%–8%, the total amount owed can grow rapidly if no repayments are made.
• Estate Size May Be Significantly Reduced
  Either through growing debt or by covering setup costs, the value of the estate left to heirs will decline.
• Impact on Means-Tested Benefits
  Drawing a lump sum could affect eligibility for Pension Credit, Council Tax Reduction, or Savings Credit .
• Fees and Setup Costs Apply
  Key charges a standard advice fee of £1,699, plus valuation, legal, and application fees—typically totaling £1,500 to £3,000.
• No Option for Home Reversion Plans
  Key exclusively offers lifetime mortgages, so if home reversion is a preferred route, you would need to consult another provider (turn0search14).
• Restrictions on Future Borrowing
  Once equity is released, it typically prevents further secured borrowing against your property.

Pros	Cons
Tax-free cash without moving	Compound interest increases debt
Fixed interest and no-negative-equity protection	Estate value reduces over time
Optional repayments and drawdown	May affect benefit eligibility
Specialist provider with 25+ years’ experience	Setup fees apply
Strong regulatory oversight and protection	No home reversion options; borrowing limits afterward

Using Key Later Life Finance offers a structured and regulated approach to equity release, with benefits like expert guidance, repayment flexibility, and consumer safeguards. However, homeowners must weigh compound interest, long-term estate impacts, and costs. A full equity release plan illustration and professional advice are critical for clarity before proceeding.

How Does Key Support Clients During the Equity Release Process?

Key Later Life Finance offers a highly structured client journey designed to combine clarity, personalisation and regulatory compliance.

Below is a clear breakdown of their process and service standards.

Clear and Transparent Communication

From initial enquiry to completion, Key ensures clients fully understand all aspects of their equity release plan.

Advisors clearly explain:

• Costs and charges: upfront advice fees, setup costs and interest rates
• Tax implications: for example, use of funds in a lump sum versus structured drawdowns
• Impact of fluctuations in house prices: how reduced value may affect estate outcomes
• Moving home: eligibility rules, downsizing protection and how porting works
• Risks associated with lifetime mortgages, including means-tested benefit changes and compounding interest

This systematic approach ensures clients are consistently informed and empowered at each stage of the process.

Tailored Advice Based on Vulnerability

In 2022, Key partnered with MorganAsh to introduce a dedicated vulnerability assessment tool. This tool helps advisors identify whether clients might need extra safeguarding, such as memory loss or recent bereavement, ensuring personalised and appropriate recommendations.

This initiative aligns with FCA’s Consumer Duty, emphasising fair treatment of potentially vulnerable consumers. During the current cost-of-living crisis, Key has also observed that divorced women typically use equity release three times more than men. Awareness of such trends ensures that advice is sensitive to demographic-specific needs and financial situations.

Award-Winning Client Service

Key’s focus on client experience is supported by extensive recognition:

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

Client feedback reinforces these accolades. Key scores highly on Trustpilot, with over 17 000 reviews and an average rating of 4.8 out of 5. Typically praised are their responsive case management, clear explanations and efficient turnaround times. The most common client concerns involve minor delays in property valuations and the generally lengthy legal process, issues common to the industry rather than unique to Key.

Complaint Handling

Key provides a straightforward complaint process via its website, with clear instructions on escalating concerns. If necessary, clients can use intermediaries such as Feefo or Trustpilot, and Key will promptly intervene to resolve any issues.

Key’s equity release service combines transparency, vulnerability-sensitive advice, and award-winning support, underpinned by FCA regulation and industry best standards. While the core process can be lengthy, this appears to reflect comprehensive due diligence rather than inefficiency.

Can I Trust Key’s Advice and Support During the Equity Release Process?

Key Later Life Finance offers comprehensive, expert-led equity release advice tailored to UK homeowners aged 55 and over. As a regulated provider and award-winning specialist, they uphold a high standard of professional service and client safeguarding.

Key operates from a central office in Preston, Baines House, Midgery Court, Fulwood, Preston, PR2 9ZH, but provides advice nationwide through remote channels. They do not maintain high street branches.

All equity release and later-life finance advice is delivered by FCA-regulated advisers employed by Key Retirement Solutions Ltd. They offer support for both lifetime mortgages and retirement interest‑only mortgages, ensuring schemes align with each client’s unique circumstances.

How to Contact Key

• Phone: 0808 252 9170 (Mon–Thu 9 am–8 pm; Fri 9 am–5 pm; Sat 9 am–1 pm) 
• Email/Letter: Send inquiries to the Preston head office (see above address) or via the website contact form .

Yes, you can trust Key for expert equity release advice. Their fully regulated advisory team, home-grown national service model, and clear communication channels reflect a credible and customer-focused approach.

Common Questions About Key's Equity Release Services

Final Insights on Key's Equity Release and Retirement Solutions

Key Later Life Finance is a long-established provider in the UK’s later-life lending market, with a focus on delivering regulated equity release advice and flexible lifetime mortgage solutions for homeowners aged 55 and over.

Its offerings include competitive fixed-rate lifetime mortgages, optional interest payment plans, and drawdown facilities, designed to meet a range of retirement funding needs. While Key does not offer home reversion schemes, its advisers are authorised to assess the full market and may recommend alternative providers if a client’s circumstances warrant a different solution.

Regulated by the Financial Conduct Authority and a member of the Equity Release Council, Key is held to high standards in transparency, suitability, and customer protection. Its advice is tailored to the individual, taking into account not just the product features but broader considerations such as state benefit eligibility, inheritance planning, and long-term financial resilience.

For UK homeowners considering equity release as part of their retirement strategy, Key represents a credible and well-regarded option supported by decades of experience, national accessibility, and industry-recognised service standards.

The features mentioned and the amounts raised, are subject to the lender’s criteria, terms and conditions. These may take into account the age, health and lifestyle factors in order to provide an enhanced amount. To understand the features and risks, ask for a personalised illustration.