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Lifetime Mortgage Calculator
Property Details
Please provide the approximate market value of the property that you would like to use for your lifetime mortgage. If you are buying a property then please enter the purchase price. Please enter a property value of £75,000 or more.
Please select if the property being used as security is your own home, or an investment property (for example a buy to let) or a holiday home (second home)?
Mortgage Details
If there is a current mortgage on the property that you wish to use as security for your lifetime mortgage, then please enter the outstanding balance. Please leave blank or enter 0 if there is no current mortgage.
Please provide details of any other charges secured against the property being used as security for the equity release lifetime mortgage.
Personal Details
Please provide the youngest applicant’s age. Lifetime mortgage quotes are based on your age, or when the application is joint, the quote is based on the youngest applicant’s age. Please specify the age of the youngest applicant. Sorry! You must be between 55 and 100 to qualify for Equity Release. Sorry! You must be between 55 and 90 to qualify for Equity Release on a Holiday/Second Home or Buy to Let Property.
Which plans would you like to see?
Do you wish to look at standard or medically enhanced plans? If the youngest applicant is in good health, then please leave on Standard. If they are in poor health, then you may qualify for the medically enhanced plans.

Please Note: The amount that you can borrow under a medically enhanced plan will depend on the type and severity of your medical conditions.

Step by step guide to using our lifetime mortgage calculator

Property Details

1. Value of property - If you are refinancing, please enter the approximate open market value of the property that you wish to use as security for your lifetime mortgage. For instance, if you were to sell the property today, what do you think you would be able to sell it for.

If you are purchasing, please enter the purchase price of the property.

2. Property type - Most lifetime mortgages are secured on the property that the borrower(s) live in or intend to live in. There are also plans available that can be secured on investment properties (buy to lets) and holiday homes. Please select the property type that the lifetime mortgage is to be secured on.

Mortgage Details

3. Mortgage balance - If there is already a mortgage secured on the property you wish to use as security for the lifetime mortgage, please enter the current outstanding balance. If there is no mortgage then please just leave the box blank or enter 0.

4. Other charges - Please enter the total balance of any other outstanding loans or debts that you have secured against your property. This could be a secured loan, a bridging loan, or a business loan. You should also enter details of any other debts or court orders secured against your property.

Personal Details

5. Age of the youngest applicant - Please enter your current age, or if the lifetime mortgage is a joint application, please just enter the age of the youngest applicant. You or they will need to be at least 55 to be eligible for a lifetime mortgage. To take out a joint application you need to be either married, in a civil partnership or in a long term relationship where you live together. With a joint application, if one of you passes away or moves into long term care, the other partner can remain in the property.

6. The plans you wish to see - Select whether you would like to look at standard plans or medically enhanced plans. Standard plans should be selected if the youngest applicant is in good health. If the youngest applicant is in poor health and suffers from certain health conditions, you may qualify for a medically enhanced plan. Medically enhanced plans may allow you to borrow more on each of the tiers, so you could also achieve a lower interest rate. Read more about medically enhanced plans.

Calculated Results
Medically Enhanced
You can raise up to
£
On a 'Maximum Release Plan' To see illustrations, please select any of the options below
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Bespoke Plan
Your Preferred Amount

Here you can enter your own amount that you wish to raise.

Please enter amount up to £

Please provide the amount you wish to raise. Please enter any amount between £10,000 and the maximum you can raise which is £
Please provide the actual amount you wish to raise to get a detailed quote.
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Lifetime Mortgage Calculator - No personal contact details required

Results are instantly displayed on screen

Our easy to use calculator will help you quickly determine the:

  • Maximum amount of equity that you can release from your property
  • Maximum amount that you can raise to put towards a property purchase
  • The interest rates and costs involved

Why use our lifetime mortgage calculator?

  • Is fast
  • Easy to use
  • Results are displayed instantly
  • Does not ask for any personal details other than your age
  • Does not capture any information that you enter

We are finance specialists, not sales people!

The calculator results explained

Once you click the calculate button, you will instantly see details of some of the options available to you.

Illustration of a lifetime mortgage calculator

Our online calculator is designed to provide you with an accurate as possible guide. The calculations are based on our most popular options and will provide you with information about:

  • The maximum amount that you can borrow based on your age and value ofthe property being used as security.
  • The interest rates involved and how these change depending on the amountyou intend to borrow. Our calculator illustrates where the maximum loan bandings are for the different changes in interest rate.
  • Illustrations of how much interest is charged each year, and in total,based on a lifetime mortgage running up to 15 years. The calculations also take account of the compounded interest for the popular Roll Up Interest options.

You can enter any loan amount between £10,000 and the maximum based onthe value of your property and your age. Our lifetime mortgage calculator will display the total interest costs for each year up to 15 years.

Lifetime Mortgage Interest Rates

Currently, interest rates range from 4.16% to 6.94% MER (Monthly Equivalent Rate).

The main determining factors for what interest rate you willreceive on your lifetime mortgage are:

  1. Loan to Value (LTV) – The amountthat you are borrowing when compared to the value of the property you aresecuring the lifetime mortgage against
  2. Location of the property – If the property is outside England, Wales or Mainland Scotland, thereare reduced options available. This may mean that the rate available is not ascompetitive as it could be due to where the property is located.
  3. Construction of the property – Is the property a standard construction, made from brick or stone with a slate or tiled roof, or is it something more unusual?
  4. Propertyuse – The best rates are available for lifetime mortgages when theproperty being used as security is the borrowers main home. There are feweroptions available for plans where the security property is a second home orinvestment property.
  5. Type of property – Many lenders prefer houses and bungalows over flats and maisonettes.Some lenders may reduce the maximum loan size they offer when the securityproperty is a flat or maisonette. 

Did you know?

  • Interest rates are fixed throughout the whole term of a lifetime mortgage.
  • Borrowing less than the maximum amount means you can access better interest rates!
    To help illustrate this, our calculator will show you quotes for three different loan amounts on 3different plans.

How does the loan to value affect the interest rate on a lifetime mortgage?

The recent Bank of England interest rate rises have increased rates slightly, however increased competition within the equity release and lifetime mortgage markets, has led to interest rates becoming increasingly competitive over the last year or so.   

Currently starting from 4.34% MER for the lowest loan to value plans, with interest rates increasing up to 6.94% MER for the highest loan to value plans.

The majority of lifetime mortgage plans are typically arranged between 4.34% MER and 5.15% MER.

There is a direct link between the interest rate and the ratio of loan to value borrowing, so to secure the best interest rate you need to be borrowing less than the maximumamount available to you. If you borrow the maximum that you can, the interest rate is likely to be around 6.5% MER.

Lifetime Mortgage Fees and Costs

  • Lender fee – most lenders will charge a fee for setting up the plan, which usuallyrange between £600 to £2000.  You can either pay this upfront, add it tothe cost of the loan or have it deducted from the loan.
  • Broker fee – We DO NOT charge a broker fee –unlike the vast majority of brokers, who do charge fees.
  • Valuation fee – the lender will need to send a valuer to undertake a valuation of theproperty being used as security. The valuation received is the figure that theywill base their offer on.
Some plans do include free valuations, so no fee is required on these.
  • Solicitor fee – You will need a solicitor to provide legal advice and oversee the legaldocumentation needed for your equity release plan.

Some plans do include free legal fees or a contribution to them.

Different repayment options for a lifetime mortgage

Roll-up Interest - Under a roll-up interest plan you won’t need to make any monthlyrepayments for the duration of the loan. The interest will be added to theoriginal loan amount, normally on an annual basis.

The outstandingbalance will therefore increase over the life of the mortgage as interest ischarged on the full amount owed.

This is known ascompound interest as interest is charged, not only on the original loan, butalso on the interest that has been applied to date. Depending on the termof the loan, this could build up over time to a substantial sum over and abovethe original loan amount.

Unless you repay the loan early, the interest that has accrued,along with the original loan amount, will be deducted from the sale of theproperty when you either pass away or go into long term care.

Interest Only - Under an interest only plan you can repay all, or a proportionof, the interest each month. This will reduce the overall cost of the loanas the interest won’t build up each month, therefore reducing or eliminatingany compound interest charges.

If you pay the full interest amount each month, the settlementfigure at the end of the loan term will just be for the loan amount releasedplus any redemption fees or set up costs (if applicable).

Illustration of how much interest charges cost over time with compound interest

The tables below illustrate how much the interest rate willaffect the total amount you will need to repay.  The examples compare therepayments over a period of five, ten and fifteen years with example compoundinterest rates of 3%, 4%, 5% and 6%.

Based on an annually rolledup lifetime mortgage loan of £50,000 with a compound interest rate of 3%

Year Loan Interest at 3% Total Owed
1 £50,000 £1,500 £51,500
2 £51,500  £1,545 £53,045
3 £53,045 £1,591 £54,636
4 £54,636 £1,639 £56,275
5 £56,275 £1,688 £57,963
10 £57,963 £1,739 £59,702
15 £59,702 £1,791 £61,493

Based on an annually rolled uplifetime mortgage loan of £50,000 with a compound interest rate of 4%.

Year Loan Interest at 4% Total Owed
1 £50,000 £2,000 £52,000
2 £52,000 £2,080 £54,080
3 £54,080 £2,163 £56,243
4 £56,243 £2,250 £58,493
5 £58,493 £2,340 £60,833
10 £71,166 £2,847 £74,013
15 £89,830 £3,593 £93,423

Based on an annually rolled uplifetime mortgage loan of £50,000 with a compound interest rate of 5%.

Year Loan Interest at 5% Total Owed
1 £50,000 £2,500 £52,500
2 £52,500 £2,625 £55,125
3 £55,125 £2,756 £57,881
4 £57,881 £2,894 £60,775
5 £60,775 £3,039 £63,814
10 £77,640 £3,882 £81,522
15 £99,091 £4,955 £104,046

Based on an annually rolled uplifetime mortgage loan of £50,000 with a compound interest rate of 6%

Year Loan Interest at 6% Total Owed
1 £50,000 £3,000 £53,000
2 £53,000 £3,180 £56,180
3 £56,180 £3,371 £59,551
4 £59,551 £3,573 £63,124
5 £63,124 £3,787 £66,911
10 £84,475 £5,069 £89,544
15 £113,048 £6,783 £119,831

What are Early Redemption Charges (ERCs) for equity release and lifetimemortgages?

An Early Redemption Charge (ERC) is a fee charged by the lender if youredeem a lifetime mortgage earlier than anticipated. An ERC may apply ifyou decide to sell the property and repay the loan.

How are Early Redemption Charges applied?

Fixed term ERCs

Most lenders have fixed ERCs, which are a percentage of theoutstanding balance and the percentages usually reduce over time.

For example, you may be required to pay an additional 5% of thebalance if you repay the loan between years 1-5, but this might reduce to 3%between years 6-8. After a set period the ERCs may no longer apply.

Gilt based ERCs

Some ERCs are conditional on the current gilt rate (these are BritishGovernment bonds). As these rates are variable, it is not possible to know howmuch the charge would be in advance. This type of ERC is less common.

When do lenders not apply an Early Redemption Charge?

Some lenders have specific special circumstances where theywould not apply an ERC, such as in the event of downsizing.

Since November 2019, all lenders have to give 3 years protectionto joint borrowers to protect them from ERCs when one of them dies or goes intocare. This gives customers 3 years to make sure they want to carry on living inthe home without their partner and gives them the opportunity to move somewhereelse without financial penalty.

Lifetime mortgage plans with cashback

Some providers offer plans with cashback. This is an extra lumpsum, on top of the loan amount, which you will not have to pay interest on.

The cashback is yours to use as you wish, however, it may be theperfect way to pay for the setup costs for your lifetime mortgage facility.

Some providers will offer a fixed amount, regardless of theamount that you are borrowing, but some providers will offer a percentage ofthe amount released. This could be somewhere between 2% and 5%.

If this is something that you are interested in then make sureyou mention this in your initial enquiry with us as we will be able torecommend providers that offer cashback facilities.

Is it worth paying a product fee to secure a good rate?

Some lifetime mortgage products charge a sizeable product fee. Whether or not this is worth paying depends on how much you are borrowing.

If you are borrowing a sizable amount of money it may be worth paying a product fee to secure a better rate. However, if you are onlyborrowing a small amount then you might be better off not paying a fee and opting for the higher interest rate.

To find out whether it is worth paying a fee, you need to compare the total amount you will be paying over the lifetime of the loan if adifferent interest rate was applied. If the savings you would make by paying alower interest rate are more than the product fee, then it could make financialsense to pay the fee. It is important to review the quotes provided for anyproduct to look at the breakdown in costs and how the outstanding balancechanges over each year that the loan is in place.

Is Equity Release expensive?

Currently, interest rates start from 4.34% MER. If you borrow the maximum amount available to you, then you are likely to pay around 6.5% MER. However, borrowing just a little less canmake a big difference to the rate, so our calculator will provide 3 quotes for different loan amounts, to illustrate how the amount you borrow can affect the interest rate.

How can I get the best lifetime mortgage rate?

The rates available to you will depend on how much you want to borrow compared with the value of your home. This is known as the loan to valueratio (LTV). The lowest LTVs qualify for the best rates so borrowing lessmoney will mean that you can access better rates.

How much equity can I release on a lifetime mortgage?

The amount you can borrow depends on the value of your property and your age (if it is going to be in joint names, then it will depend on the age of the youngest borrower). The older you are, the more you can borrow. Some products allow an extra 1% loan to value (LTV) with each additional birthday.

It is probably worth mentioning here that if you borrow the maximum amount available, you will likely be paying a higher interest rate. Sometimes borrowing a little less can have a very significant and favourable impact on the interest rate. To demonstrate this our equity release calculator will provide you with three quotes illustrating the different bandings and interest rates.

What is the difference between Pay Monthly and Interest Roll Up options?

Interest is charged on a monthly basis, whichever type of equity release product you look at. The difference is that with pay monthly (serviced) products, you pay the monthly interest amount charged each month, just as you would pay an interest only mortgage. The amount of debt with these products remains the same throughout the term of mortgage, as you are repaying the interest charges.

Interest Roll Up means that you do not make any monthly payments, leaving the interest to be added to the mortgage facility each month. Interest is calculated on the new higher debt figure each month, so in effect you end up paying interest on interest (compound interest). This may suit a lot of people who want to maximise the amount of money they have to live on each month. The amount of debt will grow, but since we only use lenders who are members of the Equity Release Council, you can be assured that you will never leave the property in the situation ofnegative equity.