Equity Release / Lifetime Mortgage Calculator
Estimate how much you could release from your home with a lifetime mortgage, how the roll-up interest builds over time, and how much equity would remain. Figures are illustrative only.
Loan Balance vs Projected Property Value
Release Breakdown
Year-by-Year Projection
Equity Release Calculator UK 2026
Our Equity Release Calculator gives you an illustrative estimate of how much you could release from your home with a lifetime mortgage, how the loan balance grows if you make no repayments, and how much equity might remain for your estate. It is a planning tool only – real products, rates and maximum loan-to-value figures vary by lender, health, and individual circumstances, so always speak to a qualified equity release adviser before proceeding.
How Much Can I Release With Equity Release?
The maximum amount you can release depends mainly on your age and your property’s value. Lifetime mortgage providers use age-banded loan-to-value (LTV) tables, so the older you are, the higher the percentage of your home’s value you can typically access.
| Age Band | Illustrative Maximum LTV | On a GBP300,000 Property |
|---|---|---|
| 55-59 | ~20% | ~GBP60,000 |
| 60-64 | ~25% | ~GBP75,000 |
| 65-69 | ~30% | ~GBP90,000 |
| 70-74 | ~35% | ~GBP105,000 |
| 75-79 | ~42% | ~GBP126,000 |
| 80-84 | ~48% | ~GBP144,000 |
| 85-89 | ~52% | ~GBP156,000 |
| 90+ | ~55% | ~GBP165,000 |
The percentages above are simplified illustrative assumptions created for this calculator only. They are not official Equity Release Council, FCA or lender LTV limits, and are not a guarantee of how much you could actually release. Actual maximum release amounts vary by provider, product and individual circumstances.
How to Use This Calculator
- Enter the age of the youngest homeowner – lifetime mortgages require applicants to be 55 or over, and the youngest applicant’s age sets the maximum LTV.
- Enter your property value – use a recent valuation or realistic estimate.
- Enter any existing mortgage balance to be redeemed from the release.
- Choose a release type – lump sum, drawdown with a reserve facility, or an interest-serviced plan.
- Enter the amount you want to release and the fixed interest rate (MER) quoted or assumed.
- Set a house price growth assumption – this is a scenario, not a forecast.
- Click Calculate to see your net cash, projected balance, and remaining equity.
Roll-Up vs Interest-Serviced Lifetime Mortgages
With a standard roll-up lifetime mortgage, you make no monthly repayments. Interest is added to the loan each year and compounds, so the balance grows over time and is only repaid when the property is sold, typically after death or a move into long-term care.
With an interest-serviced lifetime mortgage, you choose to pay some or all of the monthly interest. This keeps the loan balance level (or reduces it) rather than letting interest compound, which preserves more equity for your estate but requires an ongoing income to cover the payments.
What Is the No Negative Equity Guarantee?
Lifetime mortgages from Equity Release Council-approved lenders come with a No Negative Equity Guarantee (NNEG). This means that however much interest rolls up, your estate will never have to repay more than the property is worth when it is sold. This calculator approximates that protection with a simplified illustrative cap that stops the projected balance exceeding the projected property value – it is not a reproduction of the contractual guarantee. Actual NNEG protection depends on the specific product’s terms and conditions, and can involve sale costs, net sale proceeds and other contractual conditions, and would typically leave little or no equity for your beneficiaries once it applies.
Does Equity Release Affect Inheritance and Benefits?
- Inheritance: Releasing equity reduces the value of your estate, and therefore what you can leave to beneficiaries. Some products offer an inheritance protection guarantee that ring-fences a percentage of the property’s value.
- Means-tested benefits: A cash lump sum can affect entitlement to benefits such as Pension Credit or Council Tax Support, since savings above certain thresholds are taken into account.
- Inheritance Tax: Reducing the value of your estate through equity release can, in some circumstances, reduce a future Inheritance Tax liability, but this depends on your full financial position.
Alternatives to Equity Release
- Downsizing – selling and moving to a smaller or cheaper property to release capital without taking on debt.
- Retirement Interest-Only (RIO) mortgage – a mortgage with no fixed term where you pay interest monthly and the loan is repaid when the property is sold.
- Using pension savings or other investments before drawing on property wealth.
- Family loans or gifting arrangements as an alternative source of funds.
- Local authority grants or benefits for specific needs such as home adaptations.
Is Equity Release Regulated?
Yes. Lifetime mortgages are regulated by the Financial Conduct Authority (FCA). Most products also meet Equity Release Council standards, which include the No Negative Equity Guarantee, the right to remain in your home for life, and the right to move to a suitable alternative property. You are required to take independent legal advice, and it is strongly recommended you take independent financial advice from a qualified equity release adviser before proceeding.
Frequently Asked Questions
What is equity release / a lifetime mortgage?
Equity release, most commonly through a lifetime mortgage, lets homeowners aged 55 or over release cash from their home’s value while continuing to live in it. Cash released from a lifetime mortgage is generally not treated as taxable income. No monthly repayments are required; instead, interest is added to the loan and repaid, along with the original amount, when the property is eventually sold.
How much can I release?
The amount depends mainly on your age and property value, using an age-banded loan-to-value table. Older applicants can typically release a higher percentage of their home’s value. Use the calculator above for an illustrative estimate, then get a personalised figure from a regulated adviser.
Do I have to make monthly repayments?
No, not with a standard roll-up lifetime mortgage – repayments are optional. Some plans allow or require interest-serviced payments to control how the balance grows, and most modern plans also allow voluntary partial repayments without early repayment charges, up to set annual limits.
What is the No Negative Equity Guarantee?
It is a standard protection on Equity Release Council-approved lifetime mortgages that guarantees your estate will never owe more than the property is worth, even if the rolled-up interest would otherwise exceed the property’s value at the time of sale. This calculator only approximates that protection with a simplified cap at the projected property value; actual protection depends on the specific product’s terms and conditions.
Will equity release affect my benefits or inheritance tax?
It can. A cash lump sum may affect means-tested benefits such as Pension Credit, and reducing your estate’s value can affect both what you leave to beneficiaries and, in some cases, your Inheritance Tax position. A financial adviser can assess your specific situation.
Can I still leave an inheritance?
Potentially, yes. Taking a smaller amount relative to your property value, choosing an interest-serviced plan, or selecting a product with an inheritance protection guarantee can all help preserve equity for your beneficiaries. The projection table above shows how remaining equity changes over time under your assumptions.
What are the alternatives to equity release?
Common alternatives include downsizing to a smaller property, a Retirement Interest-Only (RIO) mortgage, drawing on pension savings or other investments, or family loans. Which option suits you best depends on your income, health, family circumstances and long-term plans.
Is equity release regulated?
Yes. Lifetime mortgages are regulated by the Financial Conduct Authority, and most products meet Equity Release Council standards, including the No Negative Equity Guarantee. Independent legal advice is required, and independent financial advice is strongly recommended before you proceed.