What is equity release?

Equity release lets homeowners aged 55 or over access the value tied up in their property without having to move. The most common type is a lifetime mortgage, where you borrow against your home and interest rolls up over time. The loan is repaid when you die or move into care.

How much equity can I release?

The amount depends on your age and property value. Typically, you can release 20-50% of your home's value. The older you are, the more you can release. For example, at age 65 you might release 25-30%, while at 80 you could release 40-50%.

Equity Release Calculator

Estimate how much you could release from your home and see how the debt grows over time with compound interest.

Last updated: April 2026 · Source: FCA — Equity release

Property Value

Your Age

Outstanding Mortgage

Interest Rate (%)

Maximum Tax-Free Release

£105,000.00

Up to 35% LTV at age 70

Year	Amount Owed	Property Value	Remaining Equity
1	£111,825.00	£309,000.00	£197,175.00
5	£143,859.10	£347,782.22	£203,923.12
10	£197,099.43	£403,174.91	£206,075.48
15	£270,043.31	£467,390.22	£197,346.92
20	£369,982.73	£541,833.37	£171,850.64
25	£506,908.41	£628,133.38	£121,224.97

Equity release is a lifetime mortgage. Interest rolls up, so the amount owed grows over time. Always seek independent financial advice. Assumes 3% annual house price growth.

Disclaimer

This calculator is provided for informational purposes only and should not be considered as financial or tax advice. All calculations are performed locally in your browser — no personal data is collected or sent to our servers. Rates and thresholds are sourced from HMRC and GOV.UK and are updated for the current tax year. Always verify results with HMRC or consult a qualified professional before making financial decisions.

How It Works

Equity release allows homeowners aged 55+ to access cash from their property without selling it. The most common form is a lifetime mortgage, where you borrow against your home and the loan plus rolled-up interest is repaid when you die or move into long-term care. The maximum you can borrow depends on your age and property value, typically 20-60% of the home's value.

Interest on a lifetime mortgage compounds because no monthly payments are made. At a rate of 6%, a £100,000 loan doubles to £200,000 in approximately 12 years. All plans regulated by the Equity Release Council include a no-negative-equity guarantee, meaning you or your estate will never owe more than the property's sale value.

This calculator projects the loan balance at different time horizons, showing how compound interest grows the debt. Enter your age, property value and amount you wish to release to see the projected debt, remaining equity and the impact on your estate for inheritance purposes.

Example: Age 68, £350,000 home, releasing £80,000

Amount released: £80,000 at 6.0% interest
After 10 years: debt grows to £143,300
After 15 years: debt grows to £191,700
After 20 years: debt grows to £256,600
Remaining equity (20 years, assuming 2% house price growth): £520,700 − £256,600 = £264,100

Source: FCA — Equity release

Frequently Asked Questions

What is equity release?: Equity release lets homeowners aged 55 or over access the value tied up in their property without having to move. The most common type is a lifetime mortgage, where you borrow against your home and interest rolls up over time. The loan is repaid when you die or move into care.
How much equity can I release?: The amount depends on your age and property value. Typically, you can release 20-50% of your home's value. The older you are, the more you can release. For example, at age 65 you might release 25-30%, while at 80 you could release 40-50%.