Equity Release Calculator UK
Estimate how much you could unlock from your home with a lifetime mortgage in 2026 — and, just as importantly, what the debt could grow to as the interest rolls up.
Last updated 2 July 2026 · Written and reviewed by Mustafa Bilgic
Equity release calculator
Typical maximum release and roll-up interest projection.
Estimate only — figures use the latest published UK rates. Always confirm on GOV.UK.
How does equity release work?
Equity release lets homeowners aged 55 or over turn part of their home's value into cash without moving. By far the most common product is the lifetime mortgage: you borrow against the home, stay living in it, and the loan plus interest is repaid when you die or move into long-term care. Unless you choose to make payments, the interest rolls up — it compounds year after year on a growing balance. The alternative, home reversion (selling a share of the home outright), is far less common today.
A 68-year-old with a £350,000 home could typically release up to around 38% — about £133,000. At 6.2% with no repayments, that debt grows to just under £328,000 after 15 years — leaving around £22,000 of equity if the property value stayed flat.
How much can you release at each age?
The maximum depends chiefly on the age of the youngest homeowner — the younger you are, the longer the interest has to compound, so the less lenders will advance. The table below is a typical guide — actual offers vary by lender, health and property.
| Age of youngest owner | Typical maximum release | On a £350,000 home |
|---|---|---|
| 55 | ≈25% | £87,500 |
| 60 | ≈30% | £105,000 |
| 65 | ≈35% | £122,500 |
| 70 | ≈40% | £140,000 |
| 75 | ≈45% | £157,500 |
| 80+ | ≈50%+ | £175,000+ |
The roll-up trap: why the debt grows so fast
Because nothing is repaid, the interest is charged on an ever-larger balance. In the example above, £133,000 at 6.2% becomes roughly 2.5 times the original loan in 15 years. That is why the projection line in this calculator matters more than the headline release. Many modern plans allow voluntary payments — even covering just the interest each month keeps the debt frozen at what you borrowed. Typical lifetime mortgage rates in 2026 run at roughly 6%–7%, with the lowest advertised deals around 5.97%–6.6% MER; the Equity Release Council's average advertised rate was 7.24% in summer 2025.
The safeguards
Equity release is regulated by the FCA, and you cannot take out a plan without first getting advice. Plans that meet Equity Release Council standards carry a no-negative-equity guarantee: however long you live and however the sums compound, your estate never repays more than the home sells for. The minimum age is 55, and rates are usually fixed for life, so the projection you see at the outset is a realistic picture of the endgame.
Inheritance and benefits
The two side-effects people underestimate: first, the rolled-up debt is settled from your home before anything passes to your family, so the inheritance shrinks every year — though a smaller estate can also mean a smaller tax bill, which you can sense-check with our inheritance tax calculator. Second, a released lump sum sitting in savings can affect means-tested benefits such as Pension Credit and council tax support — run our Pension Credit calculator before releasing more than you need. If the goal is simply cheaper borrowing in later life, compare a conventional remortgage first with our mortgage affordability calculator.
Frequently asked questions
How much equity can I release from my home?
As a typical guide, lenders offer roughly 20–30% of the property value at age 55, rising to around 50% or more at 80+. The exact figure depends on the age of the youngest homeowner, the property and sometimes your health — actual offers vary by lender, so treat any table as a guide, not a quote.
What are equity release interest rates in 2026?
Typical lifetime mortgage rates in 2026 range from roughly 6% to 7%, with the lowest advertised deals around 5.97%–6.6% MER. For context, the Equity Release Council's average advertised rate was 7.24% in summer 2025. Rates are usually fixed for life, which matters because the interest compounds.
Do I have to make monthly repayments on a lifetime mortgage?
No. With a lifetime mortgage there are normally no required monthly payments — the interest rolls up and the loan is repaid when you die or move into long-term care. Many modern plans let you make voluntary payments, which slows or stops the debt growing.
Can I end up owing more than my home is worth?
Not with a plan that carries the Equity Release Council's no-negative-equity guarantee. However fast the interest compounds, your estate never has to repay more than the property sells for. Advice from an FCA-regulated adviser is required before you can take out a plan.
Does equity release affect benefits or inheritance?
It can affect both. The rolled-up debt is repaid from your home before anything passes to your family, so the inheritance shrinks as interest compounds. And holding a released lump sum in savings can affect means-tested benefits such as Pension Credit and council tax support, so take advice before releasing more than you need.