Lifetime Mortgage Calculator: Compare Lifetime Mortgage Quotes

The maximum percentage of lending on a lifetime mortgage has changed significantly in 2024 due to the launch of a new interest only lifetime mortgage.

From the minimum qualifying age 50, you could release around 55%, subject to your income. From age 55 you could release around 22%, and this increases each year by 1% up to around 55% at age 90.

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Updated June 2024 -Author Paul Murphy 

Later Life Finance Limited. 

Lifetime mortgage equity release calculator

Access exclusive deals with our lifetime mortgage equity release calculator and discover the wide range of flexible options available to you with lifetime mortgages. 

If you are considering raising the hidden wealth from your home and how much you can borrow on a lifetime mortgage, it’s an option to consider.

A cash injection to enhance your best years may be attractive, but it’s important to get the right solution for you. 

Later Life Finance are a specialist lifetime mortgage brokerIf you decide to proceed with an application, our experts will help you without any pressure, obligation or upfront fees. 

We discuss all your lifetime mortgage options, the advantages and disadvantages and the alternatives to consider. 

We have access to the whole market for your added peace of mind we will find you the best deal available with our expert lifetime mortgage advisers. 

How much equity can i release from my home?

With certain interest only lifetime mortgages you could release around 55% of the value of your home, subject to your income.

For voluntary repayment lifetime mortgages (which make up the majority of the market), income is not taken into consideration, from age 55 you could release around 22%, and this increases each year by 1% up to around 55% at age 90.

What is the maximum equity release on a property?

The maximum percentage of lending on a property with a lifetime mortgage has changed significantly in 2024 due to the launch of a new interest only lifetime mortgage. 

From the minimum qualifying age 50, you could release around 55%, subject to your income. 

From age 55 you could release around 22%, and this increases each year by 1% up to around 55% at age 90.

How do lifetime mortgages calculators work?

The lifetime mortgage calculator uses a Loan-to-Value ratio, which is the percentage of the property’s value that can be borrowed.

The LTV is based on the homeowner’s age and value of the property. Generally, the older the homeowner, the higher the LTV.

The calculators provide a guide, but to really understand your options is best to speak with an expert to understand how much equity you can release from your home

For example, there are lump sum and drawdown options to consider, along with plan features such as early repayment charges and voluntary repayments. 

It’s crucial to discuss your complete range of options to understand what’s best for your specific requirements. 

Lifetime mortgage calculator money saving expert

What does  Martin Lewis think about lifetime mortgages, and does the money saving expert have a lifetime mortgage calculator?

The expert’s advice is to only consider a lifetime mortgage after seriously considering all the alternative options, and to deal with an equity release council registered expert. 

Specialist broker Later Life Finance have expert advisers who will help you navigate all your options. We compare lifetime and retirement mortgages to find the correct solution for your requirements. 

We help you understand the advantages and disadvantages of lifetime mortgages to avoid the pitfalls of selecting the wrong plan from the marketplace. 

Lifetime mortgage calculators with no personal details

Would you like to calculate your equity without providing all your personal information?

Later Life Finance help you with this information without the hassle. 

Our calculators provide a guide, but to really understand your options is best to speak with an expert when understanding what percentage you can release from your home

Once you’re ready, It’s useful to discuss your complete range of options to understand what’s best for your specific requirements. 

the older you are the higher the equity release percentage is infographic

Get your free lifetime mortgage calculation...

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How can a lifetime mortgage benefit you?

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Gifting an inheritance and IH tax planning

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Retirement planning with a lump sum or drawdown facility

Pay Off your Mortgage

Repaying your mortgage to enjoy the retirement you've worked for

Interest only lifetime mortgage calculator

 
There are two main options to consider: the retirement interest only and lifetime mortgage (with interest only repayments allowed).
 
With a retirement interest only plan, the mortgage amount is determined by an affordability assessment up to a maximum of 60% of your home’s value. This is based on your employed income (up to 8.5x) and/or retirement income (including retirement income yet to be earned) of the lowest earner for joint applications. 
 
Other factors are taken into account, such as whether your private pensions are index linked or continue a partners income on death are also taken into account. 
 

To compare the top 10 equity release companies, we have reviewed and listed the best providers to help you compare your options, including lender features, such as downsizing protection, voluntary repayments and more. 

  • Lifetime mortgages allow homeowners over 55 to borrow against your home with the option to make voluntary repayments to preserve more of your equity. (Payments are optional). 
  • No income or affordability checks to qualify, and takes around 8 weeks to arrange a lifetime mortgage
  • The money is repaid at the end of your lifetime from the sale of your home. 
  • To check your eligibility and how much equity you can release, try our free equity release calculator
  • Borrow between 20% and 50% of your home’s value, depending on age; enhanced mortgages available for those health problems. 
  • Negative equity guarantee for Equity Release Council members, which ensures you and your estate are fully protected
  • Possible to move home and take the lifetime mortgage if moving to a suitable property
  • Drawdown plans available to stage the borrowing over the coming years, providing more flexibility
  • Get professional advice to understand if a lifetime mortgage is suitable. 

The most popular reasons for using lifetime mortgages in 2023

top reasons for equity release companies & percentages infographic

How do you calculate a lifetime mortgage?

How do you calculate a lifetime mortgage, and what is the maximum loan to value of cash available?

There are a few factors that affect how much equity you could release from your home with a lifetime mortgage.

It’s important to remember each lender has different criteria.

As a guide, the following information is used to calculate how much money you could release. 

The factors used to calculate this are:

  • Your age (or the age of the youngest person if you own the property jointly)
  • The type of home you own (house/flat)
  • Your home’s valuation (lenders carry out a valuation)
  • Your health and lifestyle 
  • Whether you have a leasehold on the property
  • How you arrange your lifetime mortgage (as one cash lump sum, or a lump sum with a cash reserve facility)
  • Choosing a lenders inheritance guarantee to leave a set percentage of your home’s value behind

Who offers the best lifetime mortgage?

The best lifetime mortgage depends on your requirements. 
You may prioritise flexibility to downsize over interest rates, for example. 
 
Providers offer various features, each of which needs to be fully explored and considered with a qualified adviser. We will discuss and calculate the best option for you based on your requirements. 
 
Here is a list of lifetime mortgage providers. Our experts will calculate which is the best provider for your requirements. 
 
  • LV= 
  • Legal and General
  • LiveMore
  • More2Life
  • OneFamily
  • Pure Retirement
  • Scottish Widows
  • Standard Life. 
  • Royal London
  • Canada Life
  • Aviva
  • Just

Is there a credit check for a lifetime mortgage?

As part of the application process for a lifetime mortgage, the lender may check your credit report.

Since lifetime mortgages do not have mandatory repayments, any missed payments on credit are not necessarily an issue for lending. 

If you have any defaults or CCJ’s on your credit agreements, the lender may require these to be settled

Any secured lending must be settled as part of the agreement as a lifetime mortgage is the first legal charge on the property. 

Book a free, no obligation discovery call with our expert advisers

how much equity can i release from my home

What is the maximum percentage for a lifetime mortgage?

The minimum age for a lifetime mortgage is 55. 

At age 55 you can release up to 27% of your home’s value with  increases each year with age by 1%. The maximum percentage you can release from your home is 58% at age 82.

Factors impacting on how much you can release include property type and whether you take a lump sum or drawdown plan. 

What are the pitfalls of a lifetime mortgage?

A lifetime mortgage will accrue compound interest each year if you don’t make any payments, meaning you could owe far more than you borrowed when the time comes for the home to be sold. 
 
However, interest only lifetime mortgages allow you to avoid compound interest and preserve more equity in your home. This means modern lifetime mortgages can offer a flexible solution.
 
Means tested benefits can also be affected by releasing equity from your home. Our expert advisers will review all your options to ensure you are in the best financial position when considering equity release. 

How much can I borrow on a lifetime interest-only mortgage?

A lifetime interest only mortgage is based on your age and property value. The range of options available is increasing, with flexible lifetime mortgages now allowing interest and capital repayments. 

At age 55 you can release up to 27% of your home’s value, which  increases each year with age by 1%. The maximum percentage you can release from your home is around 58% at age 82.

What is the difference between equity release and a lifetime mortgage

A lifetime mortgage is the most popular form of equity release for homeowners over 55. Equity release is simply a term for releasing the equity from your home. A lifetime mortgage provides a flexible method of raising tax free equity in the form of cash. 

What happens when someone dies with a lifetime mortgage?

Your lifetime mortgage plan is repaid when the last surviving homeowner dies.

Your beneficiaries have 12 months after your death in which to repay your equity release plan.

This is usually from the sale of your property; although it can be by any financial means, if, for example your family wish to arrange a remortgage and settle the plan.

Once your equity release plan is repaid, the balance of money will then form part of your inheritance and your estate. 

Lifetime mortgage FAQs

The amount you can release on a lifetime mortgage is usually between 20% and 50% of the home's valuation. This is based on the age of the youngest homeowner and the property type.
If you need to raise more money and have no remaining Drawdown (reserve) Facility, you may be able to take a Further Advance from your lifetime mortgage. This is additional borrowing on top of your existing lifetime mortgage and is subject to the valuation of your home and the balance on your lifetime mortgage.
Equity release companies who adhere to the Equity Release Council codes of conduct offer the option to transfer your lifetime mortgage to a new property if you decide to move. However, certain conditions must be met for the new property to be considered "suitable." A suitable property refers to one that is deemed marketable by the equity release company in the future. For instance, if the new property is located in a flood-prone area, the transfer of the lifetime mortgage may not be permitted. In the case of downsizing to a property of lesser value, you might be required to repay a portion of your lifetime mortgage to facilitate the transfer.
In the case of a lifetime mortgage, you generally do not need to make monthly repayments since the loan, along with the accumulated interest, is settled when your home is eventually sold. Your lifetime mortgage adviser will provide detailed projections of how much you will pay back based on whether you opt to make payments or not.
In the event of you passing away shortly after obtaining a lifetime mortgage, the interest accrued would not have significantly accumulated, resulting in a smaller growth of the debt. If no other homeowner is listed on the lifetime mortgage, the lender requires the mortgage to be settled within 12 months of you passing away. The executors of your will sell the property and utilise the proceeds to settle the debt. The beneficiaries of your estate may opt pay off the debt using cash or a new mortgage and retain ownership of the property. This will depend on factors including your wishes set out in your will, and on whether the property is to be retained or sold, with any remaining equity divided by your beneficiaries. 
Equity release lenders who are a member of the Equity Release Council provide a no-negative equity guarantee. This ensures you will never be required to repay more than the proceeds from the sale of your home to settle the debt. In other words, the lender cannot pursue you for any shortfall between the debt amount and the sale proceeds. This protection is made possible by the no negative equity guarantee, which is upheld by all members of the Equity Release Council. According to this guarantee, the lender is strictly limited to requesting only 100% of the sale proceeds as repayment. They are not permitted to seek additional payment from you, your estate, or your estate beneficiaries.
A typical rate for a lifetime mortgage typically falls between 5.9% and 7%. That said, your rate may be different depending on factors like your loan-to-value ratio and the features included in your plan. It’s important to compare the features of different plans to find the one that best fits your needs.
Lifetime mortgages come with a few risks, such as the possibility of owing more than the value of your home due to accumulated interest. They also require monthly fees and can significantly reduce the amount of inheritance you can pass on to family members. Ultimately, it’s important to consider all of these factors when deciding if a lifetime mortgage is the right choice for you.
Lifetime mortgage interest rates are typically based on your age, the amount of money you need to borrow, and the value of your property. Generally speaking, the older you are and the less you borrow, the lower the rate you can expect. Drawdown lifetime mortgages have interest rates set at the time of further borrowing, whereas the initial lump sum is determined at the time of arranging the plan. So be sure to research what’s out there before making a decision.
Yes, you can pay off a lifetime mortgage early, but there may be fees associated with doing so. Providers have varying levels of early repayment charges which your equity release adviser will discuss with you to ensure you have access to all your options and understand the features and charges. It is best to check with your provider before you decide on the repayment plan.
Lifetime mortgages come in several forms, including lump sum, drawdown and interest-only plans. Each offers different rates and repayment arrangements, so your adviser can tailor the mortgage to meet your needs. Later Life Finance provides access to the whole lifetime mortgage market. We will explain the features, costs and points to consider of each option. This will help you make a balanced decision on the right solution for you.
You can repay an interest-only mortgage with an equity release plan. Lifetime mortgages are the most popular form of equity release and allow optional repayments of interest charges, if you wish. Since monthly repayments are voluntary with a lifetime mortgage, your home is not at risk of repossession if you do not maintain monthly payments.Therefore these plans can be more suitable into retirement years.
An interest-only lifetime mortgage is a type of equity release plan where you can pay the interest off on a monthly basis. This avoids compound interest being added which stops the loan from increasing. This type of mortgage is popular for homeowners who want to maintain equity in the home for inheritance or downsizing purposes.