How much equity can I release from my home?

The amount depends on your age and property value. As a guide, at age 55 you can typically release around 20-25% of your property value. At age 70 this rises to about 35%, and at 80+ it can reach 45-50%. The older you are, the more you can release as the lender expects a shorter loan term.

Equity Release Calculator 2026

Q: What is equity release?

Equity release is a way for homeowners aged 55 or over to access cash from the value of their home without having to sell or move out. The most common type is a lifetime mortgage, where you borrow money secured against your home. Interest rolls up (compounds) over time and the loan plus interest is repaid when you die or move into long-term care.

Q: Will equity release affect my benefits?

Yes, it can. If you receive means-tested benefits such as Pension Credit, Housing Benefit, or Council Tax Support, releasing equity may affect your entitlement. The cash you release counts as savings if not spent, and once savings exceed £10,000, benefits are reduced. Always get independent financial advice before proceeding.

Estimate how much equity you could release from your home with a lifetime mortgage. See the true cost of roll-up compound interest and what remains for your estate.

Important — This Calculator Is Illustrative Only Equity release is an FCA-regulated product. You must take independent financial advice before proceeding. This calculator shows estimates only — actual products, rates and terms vary by lender. Releasing equity may affect means-tested benefits and reduces the value of your estate.

🏠 Your Details

Your Age (youngest applicant if joint)

Must be 55 or over. The older you are, the more you can release.

Estimated Property Value

Current market value of your home. Minimum £70,000 for most plans.

Amount You Want to Release (optional)

Leave blank to see maximum release. We'll calculate what you can borrow.

Estimated Interest Rate (AER)

Lifetime mortgage rates typically range from 5.5% to 8.5% AER in 2026. Default: 6.5%.

Show Projection For

How many years into the future to show debt growth and remaining equity.

LTV Guide by Age

Age	Typical Max LTV
55	~20-25%
65	~28-32%
75	~38-42%
85+	~48-55%

📊 Result

Maximum Equity Release

£0

Based on your age and property value

Equity Split After 15 Years

Debt: £0 Remaining Equity: £0

Year	Debt	Property*	Remaining

Compound Interest Warning With roll-up interest, your debt grows exponentially. At 6.5% over 15 years, a £100,000 loan could grow to over £250,000. Some plans allow partial repayments — check with your adviser.

* Assumes 3% annual property growth. Actual property values may fall. The remaining equity could be higher or lower. No negative equity guarantee: you'll never owe more than your home's value.

What Is Equity Release?

Equity release lets homeowners aged 55 and over access cash tied up in their property without selling or moving out. The money can be taken as a lump sum, in drawdowns, or as a combination of both. The loan is repaid when you die or move permanently into long-term care, usually from the sale of your home.

The most common type is a lifetime mortgage, where you borrow money secured against your home. Interest "rolls up" (compounds) over time and is added to the loan. Because you typically don't make monthly repayments, the debt grows year after year — and this growth accelerates as the interest compounds on an ever-larger balance.

Equity release products that meet ERC (Equity Release Council) standards include a no negative equity guarantee. This means you'll never owe more than the value of your home, even if property prices fall.

Types of Equity Release

Type	How It Works	Interest	You Keep Ownership?
Lifetime Mortgage (Roll-Up)	Borrow against home. Interest compounds. No monthly payments.	Fixed or capped, compounds	Yes
Interest-Paying Lifetime Mortgage	Borrow against home. You pay interest monthly.	Fixed, does not compound if paid	Yes
Drawdown Lifetime Mortgage	Approved facility. Take cash as needed. Interest only on released amounts.	Fixed, compounds on released cash only	Yes
Home Reversion	Sell a share of your home to a provider at below market value. Live rent-free.	None — you sold a share	Partially (keep rest)

How Compound Interest Works With Roll-Up Mortgages

The biggest risk with equity release is compound interest. Unlike a standard mortgage where you pay off interest monthly, a roll-up lifetime mortgage adds interest to the loan balance — and next year's interest is calculated on that larger amount.

Example: You release £100,000 at 6.5% AER with no repayments:

After 5 years: debt ≈ £137,000 (+£37,000 interest)
After 10 years: debt ≈ £187,000 (+£87,000 interest)
After 15 years: debt ≈ £256,000 (+£156,000 interest)
After 20 years: debt ≈ £352,000 (+£252,000 interest)

This is why some plans allow partial repayments (typically up to 10% per year without early repayment charges). Making even small repayments can dramatically reduce the final debt.

Will Equity Release Affect My Benefits?

Yes — releasing equity can affect means-tested benefits. These include:

Pension Credit (Guarantee Credit and Savings Credit)
Council Tax Support / Reduction
Housing Benefit
Universal Credit (if you have capital over £16,000 you are ineligible)
Attendance Allowance, PIP and DLA are not means-tested and are unaffected

The key threshold is savings over £10,000. For every £500 above this, your weekly Pension Credit or Housing Benefit is reduced by £1. If savings exceed £16,000, most means-tested benefits stop entirely.

Important: If you spend the released equity immediately (e.g., on home improvements, paying off debt, or gifting to family), it no longer counts as savings. But deliberate deprivation of assets to claim benefits can be investigated by your local council. Always discuss this with your financial adviser.

Alternatives to Equity Release

Before committing to equity release, consider these alternatives:

Downsizing: Sell your home, buy a smaller/cheaper property, and keep the difference. No debt, no interest, full inheritance preserved — but you must move.
Retirement Interest-Only (RIO) Mortgage: Pay interest monthly. The capital is repaid when you die or sell. Requires sufficient income to cover payments.
Remortgaging: If you have an existing mortgage, extending the term or switching to interest-only may free up monthly cash.
Local authority grants: For home adaptations (disability), your council may offer Disabled Facilities Grants that don't need repaying.
Using existing savings: If you have ISAs, pensions, or other investments, these may be cheaper than borrowing at 6-8% interest.

Equity Release: The FCA Rules

Equity release is a Financial Conduct Authority (FCA) regulated product. This means:

You must receive advice from a qualified equity release adviser before taking out a plan
Advisers must hold a specific qualification (CeRER or equivalent)
The adviser must assess whether the plan is suitable for your circumstances
You have a 14-day cooling-off period after signing
All ERC-member products include a no negative equity guarantee

For free, impartial guidance, contact MoneyHelper (formerly the Money Advice Service) on 0800 011 3797 or visit moneyhelper.org.uk. They offer a free equity release guide and can help you understand your options.

Frequently Asked Questions

Can I be forced out of my home?

No. With a lifetime mortgage, you retain full ownership of your home and the right to live in it for life. The loan is only repaid when you die or move permanently into long-term care. ERC-standard plans guarantee this. With home reversion, you sell a share but keep the right to live there rent-free for life.

What happens if I want to move house?

Most lifetime mortgages are portable, meaning you can transfer the loan to a new property. The new property must meet the lender's criteria (usually standard construction, minimum value, acceptable location). If the new property is worth less, you may need to repay part of the loan. Always check portability terms before signing.

Can I pay off a lifetime mortgage early?

Yes, but most plans charge an early repayment charge (ERC). This can be significant — sometimes a percentage of the loan that decreases over time (e.g., 5% in year 1, 4% in year 2, down to 0% after 10 years). Some plans allow penalty-free partial repayments (often up to 10% per year). Always check the ERC structure before committing.

How is equity release different from a normal mortgage?

Three key differences: (1) No monthly repayments required with a roll-up plan — interest compounds instead. (2) The loan is repaid when you die or move into care, not at a fixed term. (3) You typically must be 55 or over. Normal mortgages require proof of income and regular repayments, and have a fixed term (e.g., 25 years).