Our equity release calculator shows you two things most calculators do not put side by side: how much you could release from your home today, and what that money would cost you over the years that follow.
You do not need to hand over your name, your email or your phone number to see either. Put in your age and what your home is worth, and the numbers appear.
A lifetime mortgage is a loan secured against your home. Interest is charged on the loan and on the interest already added, so the amount you owe can grow quickly. Equity release will reduce the value of your estate and may affect your entitlement to means-tested benefits. There may be cheaper ways for you to borrow. This calculator is a guide, not advice or a personal recommendation.
Your details
Two figures is all it takes. Nothing is sent anywhere.
Interest is added to the loan each year and then charged interest itself.
Fifty-five is the minimum age across the market, based on the youngest homeowner. Under that age a standard remortgage or a short-term facility is usually the right route, and we are happy to talk those through.
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We will email you a link to your PDF. Nothing else happens unless you tick the box below.
We will only use these details to send you your figures, and to contact you if you tick the box. A lifetime mortgage can only be arranged through a qualified adviser. Clever Lending is authorised and regulated by the Financial Conduct Authority.
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For illustration only. Figures are estimates based on what you have entered and are not a quote, an offer of finance or advice. The amount you can release depends on your age, your property and your circumstances, and a lifetime mortgage can only be arranged through a qualified adviser. Clever Lending is authorised and regulated by the Financial Conduct Authority (FRN 795789).
Equity release lets homeowners aged 55 and over take money out of the value of their home without moving. There are two types, and they work very differently.
A lifetime mortgage is a loan secured on your home. You keep full ownership. There are usually no monthly payments unless you choose to make them, and the loan plus the interest is repaid when the last homeowner dies or moves into long-term care, normally out of the sale of the property. This is what most people mean by equity release, and it is what we arrange.
A home reversion plan is different. You sell a share of your home to a provider for less than its market value and keep the right to live there. Clever Lending does not arrange home reversion plans. If that is the route you want, you will need a firm authorised specifically for it, and we will tell you that rather than steer you towards something we can help with.
The rest of this page is about lifetime mortgages.
The single biggest factor is age. The older the youngest homeowner is, the more a lender will release, because the loan is expected to run for less time.
| Age of youngest homeowner | Typical maximum release |
|---|---|
| 55 to 59 | Around 20 to 27% of your home’s value |
| 60 to 64 | Around 27 to 33% |
| 65 to 69 | Around 32 to 38% |
| 70 to 74 | Around 37 to 43% |
| 75 to 79 | Around 42 to 48% |
| 80 and over | Around 46 to 55% |
Ranges are indicative and vary by lender, property type and health. Some lenders offer enhanced terms if you have certain medical conditions, which can lift the maximum.
Two other things matter. Any mortgage still outstanding has to be cleared from the money you release, so it comes off the top. And the property itself has to be acceptable: most lenders want a standard-construction home in reasonable order, worth somewhere upwards of £70,000 to £100,000.
This is the part that deserves your attention, and it is the part most calculators skip.
On a standard lifetime mortgage you make no monthly payments, so the interest is added to the loan each year and then charged interest on itself. That is compound interest, and over a long retirement it does a lot of work. Here is £75,000 released at an illustrative 6.5 per cent, with no payments made.
£75,000 released at an illustrative 6.5 per cent a year, with no payments made.
The debt roughly doubles in 11 years and more than triples in 20. On a home worth £350,000 today, that 20 year figure is around three quarters of the current value.
None of that makes equity release wrong. For plenty of people it is exactly the right answer, and no-negative-equity guarantees mean you can never owe more than your home sells for. But you should go in knowing the shape of it, which is why our calculator shows you the 10, 15 and 20 year positions rather than just the headline figure.
If it worries you, there are versions that let you pay some or all of the interest monthly, which stops the balance growing. An interest-only lifetime mortgage keeps the debt flat at the amount you originally released.
| Consideration | What it means for you |
|---|---|
| Your estate | Less will be left to pass on. Talk to your family early rather than late |
| Means-tested benefits | Pension Credit and Council Tax Support can be affected by holding a lump sum |
| Early repayment charges | These can be substantial on lifetime mortgages. Check the terms carefully |
| Moving house | Most plans are portable, but the new property has to meet the lender’s criteria |
| Cheaper alternatives | Downsizing, a later life mortgage, a retirement interest-only mortgage, or help from family |
| Taking it in stages | A drawdown plan lets you take money as you need it, so interest only runs on what you have taken |
That last one is worth a second look. Taking £30,000 now and the rest later, rather than £75,000 all at once, can save a great deal of interest over twenty years.
No. Fifty-five is the minimum age for a lifetime mortgage across the market, and it is based on the age of the youngest homeowner, so if you are 62 and your partner is 53, you will have to wait.
If you are under 55 and need to raise money against your home, the answer is usually a different product entirely: a standard remortgage, a bridging loan if the need is short term, or a later life mortgage once you reach the right age. We are happy to talk that through even though it is not equity release.
Five details and the figures appear. Here is what each one means.
| Field | What to enter |
|---|---|
| Age of youngest homeowner | The younger of you if you own jointly. This drives the whole result |
| Value of your home | A realistic figure. A local agent will give you a view for free |
| Property type | House, bungalow, flat or maisonette. Flats and ex-local-authority can be treated differently |
| Outstanding mortgage | Anything still secured on the property, as it has to be cleared first |
| Interest treatment | Roll it up, or pay some monthly to keep the balance from growing |
Then look at the 10, 15 and 20 year figures rather than just the amount you could release. That is the number that tells you whether this works for your family as well as for you.
We are a specialist property finance brokerage, authorised and regulated by the Financial Conduct Authority. Later life lending sits alongside the complex income mortgages and property finance we arrange every day.
A lifetime mortgage can only be arranged through a qualified adviser, and that is a good thing. It means someone has to sit down with you, look at your whole position, and check whether equity release is genuinely the best option or whether something cheaper would do the job. Sometimes we tell people it is not the right move. That is part of doing this properly.
You will get a straight answer within 24 business hours, a written illustration before any application, and one adviser who stays with you throughout. No call centre, and no pressure.
If your situation is more about raising money against an estate than against your own home, our inheritance and executor loans may be the better fit. You can see everything we arrange on our borrower finance options page.
A lifetime mortgage can only be arranged through a qualified adviser. You will get a straight answer within 24 business hours, a written illustration before any application, and one adviser who stays with you throughout.
It depends mainly on your age and what your home is worth. Broadly, expect somewhere between a fifth of the value at 55 and around half at 80 plus. Any outstanding mortgage comes off the top. The calculator above gives you an indicative figure in seconds.
Ours is one. You enter your age and property value and the figures appear straight away. We only ask for your details if you want the results emailed to you as a PDF, and even then there is a tick box so you control whether we contact you.
Unless you choose to make payments, the interest is added to the loan each year and then charged interest itself. At around 6.5 per cent a debt roughly doubles every 11 years. That is why our calculator shows what you would owe after 10, 15 and 20 years, not just what you could release today.
Yes. Interest-paying and optional payment lifetime mortgages let you pay some or all of the monthly interest, which keeps the balance from growing. Pay it in full and the debt stays at the amount you originally released. Most plans let you stop paying later and switch to roll-up if your circumstances change.
With a lifetime mortgage you borrow against your home and keep full ownership. With a home reversion plan you sell a share of your home to a provider for less than market value and keep the right to live there. Clever Lending arranges lifetime mortgages and does not arrange home reversion plans.
It can affect both. Holding a lump sum can reduce means-tested benefits such as Pension Credit and Council Tax Support, and anything you owe reduces what is left in your estate. Both are things a qualified adviser will go through with you properly before you commit.
No. Fifty-five is the minimum across the market and it is based on the youngest homeowner. Under that age, a standard remortgage or a short-term facility is usually the route, and we can talk you through those instead.
Rather than name firms, look for the safeguards. Any plan you consider should come from a lender that is a member of the Equity Release Council, which means a no-negative-equity guarantee, the right to stay in your home for life and the right to move. Be wary of anyone who cold calls you, pushes for a decision, or will not put an illustration in writing.
No, and often you should not. A drawdown plan sets an overall facility and lets you take money in stages, with interest only running on what you have actually taken. Over twenty years that can save a very large amount compared with taking the full amount on day one.
Yes. FCA rules mean a lifetime mortgage can only be arranged through a qualified adviser, so you cannot simply apply online. It exists to protect you, and it means someone has to check that equity release is genuinely better for you than the alternatives.
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