What is the difference between equity release and a lifetime mortgage?

Equity release is the umbrella term for all products that let homeowners release cash from their property without selling. A lifetime mortgage, the most common type, lets you borrow against your home with no monthly repayments; interest rolls up until you die or move into long-term care. Home reversion is the alternative: you sell a share of your home outright in exchange for a lump sum or income.

What is the minimum age for equity release?

Most equity release lenders require the youngest homeowner to be at least 55 years old. Some products set a higher minimum of 60 or 65. If there are two owners, both must meet the age requirement. This calculator is designed for applicants aged 55 and over.

What are the risks of equity release?

The key risks are: compound interest can significantly erode the equity left for your estate; it may affect entitlement to means-tested benefits; early repayment charges can be substantial; and it reduces the inheritance you leave. A no-negative-equity guarantee (standard on Equity Release Council products) ensures you never owe more than your home is worth.

Do I need financial advice before taking equity release?

Yes. It is a regulatory requirement under FCA rules that you receive independent advice from a qualified equity release adviser before proceeding. This calculator is for estimation only and does not constitute financial advice. All Equity Release Council member firms require regulated advice.

Will equity release affect my benefits?

It can. A lump sum may affect means-tested benefits, such as Pension Credit, Council Tax Reduction, and Universal Credit, if it pushes your savings above the threshold (£10,000 for Pension Credit; £16,000 cuts entitlement entirely). Seek specialist benefits advice before proceeding, particularly if you receive Pension Credit.

Updated 6 April 2026

Equity Release Calculator · Free UK 2026

Estimate how much equity you could release from your home based on your age and property value, no personal details required.

✓ Free to use✓ No personal details✓ Age-based LTV bands✓ Instant estimate

Equity Release Calculator

Enter your property value and age, estimate appears instantly

Property value (£)

Your age (youngest owner)

Estimated maximum release

£111,000.00

LTV band: 37%, based on age 65

Property value

£300,000.00

Age-based LTV band

37%

Maximum estimated release

£111,000.00

Typical interest rate

5.5% AER (compound)

Projected balance after 10 years

£189,604.03

Estimated equity remaining

£110,395.97

Estimates only, not financial advice. Equity release is a major decision. Always seek independent FCA-regulated advice before proceeding.

How the Equity Release Calculator Works

Quick Answer: Equity release lets homeowners aged 55+ borrow against their home with no monthly repayments. The amount you can release depends on your age and property value, typically 20–55% LTV. At a typical rate of 5.5% AER, interest compounds quickly. Always take FCA-regulated advice before proceeding.

What is Equity Release?

Equity release lets homeowners aged 55 and over access the value tied up in their property without selling or moving. The most common product is a lifetime mortgage: you borrow a lump sum against your home, interest rolls up, and the loan plus interest is repaid when the property is eventually sold, usually on death or move into long-term care.

Formula

Maximum release = Property value × LTV% (age-dependent band)

e.g. £300,000 × 35% (age 65) = £105,000 estimated maximum

Worked Example: Age 65, Property £300,000

Property value£300,000

Age 65 → LTV band35%

Maximum estimated release£105,000

Typical rate5.5% AER

Projected balance after 10 years~£179,500

Equity remaining (est.)~£120,500

Estimates only. Actual amounts depend on lender criteria, property type, and health. Seek FCA-regulated advice before proceeding.

Age-Based LTV Guide

Age range	Typical max LTV
55–59	20–25%
60–64	25–35%
65–69	35–40%
70–74	40–47%
75–79	47–52%
80+	52–55%

LTV bands are indicative. Enhanced terms may be available for certain health conditions.

Frequently Asked Questions

The amount depends on your age and property value. Lenders typically offer between 20% and 55% of your home's value (loan-to-value or LTV). Younger applicants aged 55–60 are usually offered lower LTVs (around 20–25%), while applicants aged 75+ can often access up to 50–55%. Enhanced terms may be available if you have certain health conditions.