Free equity release calculator
Our free equity release calculator is quick and easy to use. Results are instant, there’s absolutely no obligation to proceed and you receive a free equity release guide to help answer any questions you may have.
Why use our lifetime mortgage calculator?
The lifetime mortgage calculator is the most popular type of equity release calculator and will help you see how much equity you could release from your home. It’s simple to use, there are no credit checks so it won’t affect your credit score and you receive a free guide that explains how equity release works.
The calculator is provided by multi award winning equity release specialists Age Partnership, a company with access to preferential and exclusive plans from leading UK lenders. By searching such a comprehensive range of lenders, they could potentially save you hundreds or thousands of pounds in interest over the course of the plan by securing you a lower rate than you may have found elsewhere.
How to use our free equity release calculator
Our equity release calculator will show you the amount of equity you can release from your home based on the age of the youngest homeowner and the value of your property.
You simply need to add:
- Your estimated property value - if you not sure how much your property is currently worth, you can get a free valuation from Zoopla or an estate agent like Yopa
- Your postcode
- Your name
- The age of the youngest homeowner
- Your email address
- Your phone number
Then simply click on the calculate now button and the lifetime mortgage calculator will show you how much cash you can release in seconds.
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What percentage can you get on equity release?
The percentage equity you can release from your home will depend on your property value and your age or that of the youngest borrower. The older you are, the more you can borrow.
Over 55s with certain medical conditions may also be able to borrow more with an enhanced lifetime mortgage. If the lender believes they may be repaid sooner as your condition could shorten your life expectancy, they will usually offer a higher percentage.
How do you calculate equity release?
To calculate the amount of equity you can release, you need to multiply the maximum percentage allowed based on your age by your property value.
For example, a 65 year old can release a maximum percentage of 41.3%. This means they can release 41.3% of their property value. If they suffer from a health condition and are eligible for a medically enhanced lifetime mortgage, the maximum percentage increases to 54.4% of their property value.
From the age of 55 you can typically release a maximum of around 30% of your property value. This percentage increases by approximately an extra 1% each year, to a maximum of just under 60%.
||Maximum medically enhanced
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How is equity release interest calculated?
Interest on equity release is calculated based on your interest rate, which is either fixed or variable with a capped limit. Depending on the type of lifetime mortgage you choose, the interest is added to your loan either monthly or annually.
The loan continues to grow as interest is charged on both the loan, plus interest already accrued, known as compound interest. It is then repaid from the sale of the property once you die or move into long term care.
Do I qualify for equity release?
To qualify for equity release you need to be 55 years of age or older and own a property worth at least £70,000. Although there is no upper age limit, some providers do have a maximum 90 year threshold.
You can still qualify for equity release if you have a mortgage, but this must be repaid with the money you release.
In addition to age and property value, there are a number of other aspects that will need to be taken into consideration such as:
- Whether the loan is in joint or single names
- The location and construction of the property
Joint vs single
A lifetime mortgage can be arranged in single or joint names. All joint equity release applicants must be at least 55 years of age and the amount you can release will depend on the age of the youngest applicant.
Typically, providers will request you choose a joint scheme if you have a spouse or partner living at the property. The worry is that if the plan were in a single name and that named person dies or moves into care, the property would need to be sold within 6 to 12 months in order to repay the loan. Whereas if the plan were in joint names, the property would only be sold once the second person dies.
Which is why joint equity release could be the best option for joint property owners.
How property, location and construction affect lifetime mortgages
The type of property you own, construction and location of it may also affect the lifetime mortgages available to you. Basically, the lender will want to ensure that when the time comes, the property will sell for market value. So typically, they will want the property to be of standard construction.
Whilst equity release is available to over 55s throughout the UK, fewer lenders operate in Scotland and there are currently limited lenders in Northern Ireland. As a result of these limitations, the amount you can borrow and the interest rates available to you may be affected.
Equity release calculations with no personal details required
In order to demonstrate how much tax free cash you can release and to send you your free guide, the lifetime mortgage calculator asks for a few personal details, such as your name and email address.
If at this stage you prefer not to add any personal details, the following table may help.
Examples of a lifetime mortgage on a property valued at £400,000 with no personal details asked
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What is the typical interest rate for equity release?
According to the Equity Release Council, the average equity release interest rate is around 4%. Typically interest rates range from 3% to 7% depending on the lender and the type of plan you choose.
Your age will impact the interest rate options available to you, as will your credit history and the product features included. The amount you wish to borrow against the maximum amount available to you will also affect the rate. Usually, the greater the percentage you wish to release, the higher the interest rate will be.
What can affect the maximum percentage?
The percentage equity you can release from your property will depend on your age. The older you are, the more equity you can release. The value of your property, it’s construction and the state of your health will impact the maximum amount you can achieve.
How much does equity release cost?
The total cost of equity release includes advice fees, arrangement or application fees, surveyor’s costs, solicitor’s fees and the interest you pay on the loan. These costs will depend on the product you choose and the lender, as companies offer incentives that can reduce or include certain services for free.
It is worthwhile comparing the full cost of the deal though, as what looks like cheap set up fees may prove expensive if it comes at the cost of a higher interest rate.
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How long does equity release take?
The equity release process usually takes between 8 to 12 weeks, assuming there are no complications. This allows time for you to seek specialist financial advice, submit your application, get a valuation and enlist the help of a solicitor.
Once all the legal checks are complete and the valuation is complete, your solicitor will set a completion date for the money to be paid either via cheque, or straight into your account.
What is the difference between pay monthly and interest roll up options?
When it comes to repaying the loan, you can choose to make no monthly repayments with the ‘roll up option’, or to repay some or all of the interest with the ‘pay monthly option’.
Pay monthly option - you have the freedom to make payments against some, or all of the interest on a monthly basis. This option will reduce the overall size of the loan when it comes to repayment.
Roll up option – there are no monthly repayments to make. Instead, the interest is added to the loan and repaid once you die or move into long term care.
So, if you are trying to keep monthly costs to a minimum, the roll up option could help as there are no repayments. However, the size of the loan will grow at a much faster rate with this repayment option as the interest continues to be added.
Will doing equity release affect my entitlement to means tested benefits?
Equity release could affect your entitlement to means tested benefits if the cash sum paid out takes you above the savings threshold. A specialist equity release adviser like Age Partnership will help you understand the impact releasing equity could have on any benefits you currently receive and advise you on the best way forward.