Lifetime mortgage calculator

A lifetime mortgage calculator will show you how much cash you could release from your home with a lifetime mortgage - the most popular type of equity release. We find that our customers use the calculator to get a good idea of what cash they could release before speaking to an adviser for more information.

Updated 28th June 2023

If you’re 55 and over and considering unlocking some of the equity tied up in your home, then a lifetime mortgage could help. A lifetime mortgage calculator can be a great place to start as it will help you understand how much cash you could release.

What are lifetime mortgages?

A lifetime mortgage is the most popular type of equity release. It lets you release some of the equity from your home without having to worry about monthly repayments as the loan and interest are only repaid once you die or move into care and the property is sold.

You continue to own 100% of your property and have the flexibility to make repayments should you want to keep costs down.

To understand more about how they work, read lifetime mortgages explained.

What is a lifetime mortgage calculator?

A lifetime mortgage calculator shows you how much money you could release from your home with this form of equity release. By adding a few simple details such as the age of the youngest homeowner and the value of your property, it will calculate how much tax free cash you could receive.

The actual amount will depend on your personal circumstances, so if you are interested in lifetime mortgages, you should seek advice from a qualified IFA or broker.

How to use our lifetime mortgage calculator

A lifetime mortgage calculator is quick and easy to use with no obligation to proceed. All you need to do is add your name, postcode, contact information, estimated property value and the age of the youngest homeowner. Based on these details, it will calculate how much cash you could release with a lifetime mortgage.

How is a lifetime mortgage calculated?

The amount of cash you can release with a lifetime mortgage is calculated by taking the following information into account:

  • Your age (or the age of the youngest homeowner if the mortgage is to be in joint names)
  • The value of your property
  • The type of property you have and whether it is leasehold
  • Your health
  • The type of lifetime mortgage you choose
  • The interest rates available

As an initial guide, our lifetime mortgage calculator calculates the amount you could potentially release based on your age and property value. A qualified IFA or broker can give you an accurate calculation based on more personal details such as the type of property you own and your health. This will be important as it will dictate the lifetime mortgages available to you and whether you are entitled to better rates with an enhanced lifetime mortgage.

How is the maximum amount I can borrow against my home calculated?

Using the information mentioned above, the calculator will work out the maximum percentage you can borrow against your home, known as the ‘loan to value’ or LTV. Multiplying this percentage by the value of your property will calculate the maximum amount you can release.

Your age Maximum LTV
55 21.5%
60 26.5%
65 31.5%
70 36.5%
75 41.5%
80 46.5%
84 50.5%

How is the interest calculated on a lifetime mortgage?

The interest charged on a lifetime mortgage is compound interest, which means it is calculated by adding interest not just to the loan but to the interest already accrued. To keep costs down, you can choose to repay some or all of the interest or make adhoc repayments.

Once you have used our lifetime mortgage calculator to see how much money you could release, you can use our compound interest calculator to see how much interest will be charged throughout the life of the loan and how much money you could save by making repayments.

What should I do now?

To see how much cash you could release, use our lifetime mortgage calculator, if you prefer not to provide your personal details, please use our calculator with no personal details required.

Or if you’re ready to get some initial free advice, you could speak to our partners at Age Partnership.

Age Partnership is one of the UKs leading lifetime mortgage brokers who offer a range of lifetime mortgages through leading providers.

Alternatively, you can approach other companies directly. For example, you could compare lifetime mortgage calculators with Standard Life, Aviva and Legal & General to name but a few. Do keep in mind that some companies may only offer you their own products, not a range from different lenders.

Did you find this information helpful?

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Our aim is to provide you with clear and accurate information to help you research your chosen financial products and services. The material on this site is for general information only and does not constitute any form of advice or recommendation.

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Over50choices is an independent company and regulated by the FCA (No.594280) for insurance products only and a member of the Equity Release Council.