The Advertising Standards Agency has censured an advert from Key Retirement Solutions, which the ASA said risked exploiting some viewers’ concerns about their finances.
Key ran the TV ad in question in January 2023, which promoted an equity release mortgage product.
The ASA upheld the one complaint made against the advert, which claimed it irresponsibly used fear about the potential of high mortgage rates to promote the product, and misleadingly implied that the equity release plan was comparable to a normal mortgage.
The TV ad included a cartoon sketch of a couple taking advice.
The voiceover stated: “If you’re retired and your existing mortgage deal is coming to an end, you might find your current lender has some bad news regarding your new monthly repayments. So it’s good to know there’s another way.
“With an equity release plan from Key, you could clear your current mortgage and, with the option to make reduced or no monthly repayments, you could have more money in your pocket.
"So visit keylaterlife.co.uk to see how we could help, or talk to your mortgage adviser. Key, for the life in later life.”
In addition, text that appeared on the screen included the warning that equity release will reduce the estate’s value and may affect a person’s entitlement to means-tested benefits.
It added: “Typically, the loan plus compound interest is repaid when the plan comes to an end following death or entry into long term care.
"Clearing existing mortgage with equity release may result in higher cost of borrowing. 55+ homeowners only. Our equity release advice relates to Key branded lifetime mortgages only – a loan secured against your home”.
Key’s position
In its submission to the ASA, Key said the ad made viewers aware of a product that could solve their financial needs and that may be better suited than a standard mortgage.
“It offered a no negative equity guarantee, a fixed-for-life interest rate and the ability to start/stop making payments at any time,” Key said.
Ad clearance service Clearcast, added that it was reasonable for the ad to state some of the possible short-term benefits of taking out a plan with Key as an alternative to a traditional mortgage, and that it “did not unfairly prey on consumers’ cost of living concerns”.
Key said on-screen text made it clear that the advertised lifetime mortgage was only repayable on death or entry into long-term care.
It also believed it was clear that a lifetime mortgage was different to a standard mortgage and that this was reinforced by the statement “So it's good to know there’s another way”.
In addition, the ad signposted people to Key’s website and suggested discussing options with a mortgage adviser.
