Equity Release Calculator

Equity release is available to UK homeowners aged 55 and over, with a property worth at least £70,000. The property must be your main residence, in good condition, and typically have low or no outstanding mortgage. You must own the property outright or have a small remaining mortgage that can be paid off with the equity release funds.

The amount depends on your age, property value, and health. Typically, you can release 25-55% of your property value. At age 55, most lenders offer around 25%, increasing by approximately 1% per year. By age 85, you may access up to 55% of your property value. Enhanced rates may be available for certain health conditions.

Yes, with a lifetime mortgage (the most common type), you retain full ownership of your home. You have the right to live there for life or until you move into long-term care. The loan plus accumulated interest is repaid when your home is eventually sold. With home reversion, you sell a percentage of your home but retain the right to live there.

Costs include arrangement fees (typically £1,500-£3,000), valuation fees, legal fees, and ongoing interest charges. Risks include reducing your inheritance, potential impact on means-tested benefits, early repayment charges if you want to move, and compound interest growth over time. Always seek independent financial advice before proceeding.

Yes, alternatives include downsizing to a smaller property, taking out a standard mortgage or loan, asking family for help, renting out a room, or accessing pension benefits. Consider selling non-essential assets, using savings, or exploring government benefits you may be entitled to. Compare all options carefully before choosing equity release.