UK Equity Release Calculator
Calculate how much equity you can release from your home if you are 55 or older. Compare lifetime mortgages vs home reversion plans, see the interest roll-up snowball effect, understand the No Negative Equity Guarantee, and estimate the impact on your estate.
The two main equity release products work very differently. Compare how each performs on your home worth £400,000.
Interest rolls up each year
Repaid on death or care home move
Can make voluntary payments
ERC members guarantee no NNEG
No interest charged ever
Provider shares future appreciation
You keep right to remain
Fixed — cannot get more later
| Feature | Lifetime Mortgage | Home Reversion |
|---|---|---|
| Who owns the home | You (100%) | You + provider (split) |
| Interest charged | Yes — rolls up | No |
| Benefit from rising prices | Yes (all of it) | Only your retained share |
| Cash received | Higher (more LTV) | Lower (discount applied) |
| Inheritance impact | Reducing (debt grows) | Fixed (% sold stays fixed) |
| Flexibility to access more | Yes (drawdown plans) | No |
See how equity release affects the inheritance you leave, at different ages, with and without home price appreciation.
| Projection | Home Value | Loan Balance | Remaining Estate | vs No Release |
|---|---|---|---|---|
| Today | £400,000 | £140,000 | £260,000 | -£140,000 |
| In 10 Years | £537,567 | £246,028 | £291,538 | -£106,028 |
| In 20 Years | £722,444 | £432,356 | £290,089 | -£292,356 |
| In 30 Years | £970,905 | £759,798 | £211,107 | -£619,798 |
How to Use This UK Equity Release Calculator
Enter your home value, age (must be 55 or older), any existing mortgage balance (which must be repaid from proceeds), and select your plan type. For a lifetime mortgage, enter the interest rate. The calculator shows your estimated maximum release, projected balance after interest roll-up, and remaining estate value.
Equity Release at a Glance
- Available to homeowners aged 55 and over
- No monthly payments required (on standard lifetime mortgages)
- The loan plus rolled-up interest is repaid when the property is sold
- Regulated by the FCA — providers must be authorised
Lifetime Mortgage vs Home Reversion
— Borrow against your home (typically 20–60% of value by age)
— Interest rolls up each year (no monthly payments needed)
— You keep full ownership of the property
— Repaid from sale proceeds on death or care home move
Home Reversion Plan:
— Sell a percentage of your home to the provider at a discount
— Receive a lump sum (no interest charges)
— Provider shares in future price appreciation on their share
— You retain the right to live in the property rent-free for life
Lifetime mortgages are far more common, accounting for over 95% of equity release plans in the UK. Home reversion plans are less flexible but offer certainty — the debt never grows.
How Much Can I Release?
The amount you can release depends primarily on your age. Older applicants can access a higher percentage of their property value because the loan has less time to compound before repayment.
Age 60: approximately 25–30% of home value
Age 65: approximately 30–38% of home value
Age 70: approximately 38–45% of home value
Age 75: approximately 42–50% of home value
Age 80+: approximately 50–60% of home value
Actual amounts vary by lender, health, and property type.
Some providers offer enhanced terms for applicants with certain medical conditions or lifestyle factors, as reduced life expectancy lowers the lender's risk of the loan exceeding the property value.
Example: Lifetime Mortgage for a 68-Year-Old
Margaret releases equity from her London flat
Margaret is 68 with a flat worth £420,000 and no existing mortgage. She wants income to supplement her pension.
| Home Value | £420,000 |
| Age | 68 |
| Maximum LTV at 68 | ~35% |
| Maximum Release | £147,000 |
| Interest Rate (fixed for life) | 5.8% |
| Balance after 10 years | £258,300 |
| Balance after 20 years | £454,500 |
| No Negative Equity Guarantee | Protected (ERC member) |
If Margaret makes voluntary monthly interest payments of £711, the loan balance stays at £147,000 indefinitely, preserving her full estate.