Equity Release Calculator
See how the interest on a lifetime mortgage builds up year by year, and what it leaves of your home.
Your home and the lifetime mortgage
With most lifetime mortgages nothing has to be paid each month: the interest is added to what you owe, and interest is then charged on that too. Many let you pay some of the interest if you want to, up to a limit. Rates move, and yours would depend on your age, your home and the lender, so try a few.
Your home’s value
Unticked, your home stays at today’s value. House prices can fall as well as rise, so any growth here is an assumption, not a forecast.
After 15 years
Worth knowing
At 7.50%, with nothing paid, what you owe roughly doubles every 9.3 years. Interest is charged on the interest already added. Paying some of it each month, if you can, slows this down. Try it above.
It reduces what you can leave, and it can affect means-tested benefits. Talk it through with your family. We check your benefits position as part of the advice.
Year by year: what you’d owe and what’s left
| Year | Owed | Left |
|---|---|---|
| Year 1 | £80,822 | £269,178 |
| Year 2 | £87,097 | £262,903 |
| Year 3 | £93,858 | £256,142 |
| Year 4 | £101,145 | £248,855 |
| Year 5 | £108,997 | £241,003 |
| Year 6 | £117,459 | £232,541 |
| Year 7 | £126,577 | £223,423 |
| Year 8 | £136,404 | £213,596 |
| Year 9 | £146,993 | £203,007 |
| Year 10 | £158,405 | £191,595 |
| Year 11 | £170,702 | £179,298 |
| Year 12 | £183,954 | £166,046 |
| Year 13 | £198,235 | £151,765 |
| Year 14 | £213,625 | £136,375 |
| Year 15 | £230,209 | £119,791 |
An illustration, not a quote. It assumes one fixed rate throughout and leaves out fees: any added to the loan would be charged interest too. A lifetime mortgage is usually repaid from the sale of your home when the last of you dies or moves into long-term care.
This is a lifetime mortgage. To understand the features and risks, ask for a personalised illustration. These figures are a guide, not a quote. A lifetime mortgage is a loan secured on your home, and it isn’t right for everyone, so we look at the alternatives with you first.
Want a real figure, not an estimate?
Calculators give you a rough idea. Leave your name and number and a CeMAP-qualified advisor will call to talk you through your numbers and what lenders would actually offer.
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How the interest on a lifetime mortgage builds up
With most lifetime mortgages nothing has to be paid each month. Instead the interest is added to the loan, and from then on interest is charged on that interest too. This is compound interest, and it’s why the amount owed grows faster as the years go on. The calculator above shows it year by year.
How quickly it grows
At 7.5% a year, with nothing paid, the amount owed roughly doubles every 9 to 10 years. £50,000 released at 7.5% would be about £105,600 after ten years, and about £223,000 after twenty.
Paying some of the interest
Many lifetime mortgages let you pay some or all of the interest each month, up to a limit, without an Early Repayment Charge. Paying all of it stops the amount owed growing. Put a monthly figure in the calculator to see the difference.
Your home’s value
Tick the box to see the figures with your home going up in value each year. That’s an assumption, not a forecast: house prices can fall as well as rise. Plans from Equity Release Council members include a no negative equity guarantee, so when your home is sold, you or your estate will never have to repay more than it sells for.
What these figures don’t include
The results are illustrations, not a quote. They assume one fixed rate throughout and leave out fees. Rates depend on your age, your home and the lender, and how much you can release depends on your age. A lifetime mortgage reduces what you leave and can affect means-tested benefits, and it isn’t right for everyone. Read our guide to equity release, or call us on 01202 733 809 and ask for Beth.
Next step: Equity release, explained by a specialist