Equity release calculator

How our equity release calculator works

With over 10 years' experience advising on equity release, we've reviewed the criteria used by lenders across the market to identify the key factors that affect how much they may lend. These form the inputs to our equity release calculator.

1. Your property value

The minimum property value lenders will consider is £70,000. However, for access to the majority of plans, your home must be worth at least £100,000. There are no specific upper limits to property value.

2. The age of the youngest applicant

The minimum age for equity release is 55. Lenders use the age of the youngest homeowner to determine the maximum percentage of your property value they'll lend. Typically, the older you are, the larger maximum percentage of your home you can release.

3. Whether you are applying singly or jointly

Lenders generally use the age of the youngest applicant when assessing a joint application, and maximum LTVs can differ between single and joint applications.

4. Your property type

Houses and Bungalows typically see higher maximum releases than Flats and Maisonettes.

5. The Country that you live in

Some lenders offer different terms in England, Wales, Scotland, and Northern Ireland.

Our calculator compares these details against current equity release lender criteria from across the market to show potential options available to you.

Unlike a calculator that simply gives one estimated maximum, our calculator gives four results so you can see the relationship between the amount you release and the rate available.

Why don't we need personal details?

You might be wondering why we're not asking for your name, email address or phone number.

You don't need to give them to us to use the calculator.

We know that entering your details into a calculator can sometimes mean getting a phone call or email before you've even had a chance to look at your results. That's not what we want to do.

You can use our calculator anonymously and see how much you could release.

But, there is one limitation. Without your address, we can't take some of the more detailed property-specific information that certain lenders use when calculating their release and rates.

If you'd like a personalised quotation after seeing your results, you can choose to provide your details at that point.

You're in control of when you want to speak to us.

How much equity can you release?

Your potential release is calculated using the maximum loan-to-value (LTV) available for your circumstances, multiplied by your property value.

For example, if a lender offers a 40% LTV and your property is worth £300,000, the potential maximum release based on that LTV would be £120,000 (£300,000 * 40% = £120,000).

The LTV is applied to the property's value, so the property valuation has a direct impact on the amount available. This is also why different calculators can produce different results if they use different assumptions or lender criteria.

Your LTV is influenced by factors including your age, whether you apply individually or jointly, your property and whether you qualify for medical enhancement.

Our calculator compares current lender criteria to identify the potential options available to you.

How does maximum LTV change with age?

The table below shows examples of the maximum standard and medically enhanced LTVs currently available under our lender criteria.

See our full equity release maximum LTV by age table.

How accurate is the equity release calculator?

Our calculator is designed to provide an indication of the amount you could potentially release based on current lender criteria. We regularly check loan amounts, interest rates and lending criteria across the providers included in our calculator.

Your actual release may differ because lenders assess individual circumstances and property details when providing a formal quotation. Some lenders also use property-specific information that isn't available to an anonymous calculator.

The Money Release equity release calculator considers plans from across the market, including:

• Aviva
• Canada Life
• Just
• Legal & General
• LiveMore
• LV=
• More 2 Life
• Pure Retirement
• Riverton
• Royal London

Once you have used our equity release calculator, request a Key Facts Illustration from one of our qualified equity release advisors for an exact quote from an equity release lender.

We search the whole market, to find the most suitable option for your needs. If you find a better deal elsewhere, we will give you £50^*.

Your medical information may give you different personalised enhancements.

Our calculator shows you the maximum medical enhancements available in the market.

However, the level of medical enhancement available will depend on your individual medical circumstances, so your personalised result may be lower than the maximum shown by the calculator.

What else can affect your equity release calculator results?

Property construction

Your property's construction can affect which lenders will consider your property. Some lenders have restrictions around non-standard construction, roofing materials or other property characteristics. As a result, your final available release may be lower than the initial calculator estimate.

If your property is of non-standard construction, you can read my full guide.

Plan features and suitability

Equity release plans have continued to become more and more flexible over recent years, with new plan features across a range of financial products.

As part of our financial advice, we will discuss what you feel your future holds and detail plan features that may benefit you.

Having the maximum release or the lowest interest rate may not be your best solution. As a part of our financial advice meeting, we will explore all features with you and recommend a plan that best meets your needs.

Click here to arrange your free consultation.

Lodgers

Generally, other people can continue to live with you after taking equity release. However, if you have a tenancy agreement in place or are receiving an income from those living with you, it may limit the number of plans available to you.

Second / Holiday homes / Buy-to-let

Equity release lenders currently only allow you to take a plan on your primary residence (your main home).

But what if you own a different property on which you wish to take equity release?

We can explore other financing options you could arrange on the properties, such as a buy-to-let mortgage that requires monthly payments.

What is the typical interest rate on equity release?

Your calculator results include an indicative interest rate for each of the four calculations. The best way to see the rates currently available for your circumstances is to use our equity release calculator.

Remember: Lifetime mortgage rates can be fixed for life, meaning you can borrow money long-term without making mandatory monthly payments.

Do you want to find out more? Use our equity release calculator to find out what interest rates you can achieve.

It may be possible to achieve a lower interest rate than the calculator suggests.

Some lenders give discounts if you make payments. If you can agree to make regular repayments, you could get a discount of up to 1% on the interest rate!

Some lenders give interest rates for specific loan amounts. Once we know what specific loan amount you are trying to achieve, we may be able to get you a lower interest rate than the calculator suggests.

How is equity release interest calculated?

For most lifetime mortgages, interest is calculated on the amount you owe and, where you do not make repayments, is added to the mortgage balance. This means that interest can compound over time.

Lenders may express their interest rates in different ways. Some may quote a Monthly Equivalent Rate (MER), while others may show an Annual Equivalent Rate (AER).

MER and AER are not the same thing. AER expresses the equivalent annual rate after allowing for the effect of compounding, which can make it easier to understand how the balance may grow over a year when interest is not being paid.

When comparing equity release rates, make sure you know whether the figure quoted is MER or AER. Do not compare a MER from one lender directly with an AER from another lender.

Your personalised Key Facts Illustration (KFI) will show the interest rate and other costs applicable to the particular lifetime mortgage being illustrated. Your adviser should explain how the quoted rate affects the amount you could owe over time.

How much could I owe with equity release (interest calculator)?

You are not required to make any interest payments during the life of the equity release plan, although you can choose to make payments if you wish.

At the end of the equity release plan (when you move into permanent long-term care or pass away), you must repay the money borrowed and the interest charged.

Once you know how much you could release, our compound interest calculator can show how the balance could grow over time.

Next steps - What happens after using the calculator

Once you have entered your details into our equity release calculator, hit "calculate now". This will get the calculator to crunch the numbers and provide you with your results.

On the results page, you will find four individual results:

• The lowest standard rate plan
• The average loan
• The maximum standard release
• The maximum medical enhancement

You will see that the more money you want to release, the higher the interest rate you will likely be charged.

But, the equity release calculator only provides four results, so you may wonder what interest rate you can achieve for a specific loan amount.

You have the option to:

Compare the latest equity release deals

By providing your contact details and your specific requested loan amount, you will receive your personalised equity release market report.

We will also give you a call to discuss your best options.

There's no obligation to proceed - we simply want you to have the most up-to-date personalised information, to help make an informed decision.

Speak with a qualified advisor

If you are ready to speak with a qualified equity release advisor, you will have the option to book an appointment directly into one of their diaries.

You can book your free equity release appointment at a time that best suits you.

The initial appointment will be conducted over the phone, and a home visit can be arranged if you or your advisor wishes.

Your adviser will be able to answer your questions and, where appropriate, provide you with a personalised Key Facts Illustration (KFI) showing the specific lifetime mortgage, interest rate, costs and other important features.

Frequently Asked Questions (FAQs)

Does using the equity release calculator affect my credit score?

No. Using our calculator is entirely confidential and does not involve a credit check.

Do I need to provide personal details?

No. Our calculator is designed so you don't need to provide any personal details. However, to receive a tailored formal quotation, we will need your full address and contact information.

Do I need to speak with an advisor after using the calculator?

No – the calculator provides instant results with no obligation to speak to an advisor. However, if you want tailored recommendations, our advisors can explain your options in more detail.

How accurate is an equity release calculator?

We regularly update our equity release calculator to ensure it references recent market changes. Other online calculators may vary.

Does the calculator include medically enhanced equity release?

Yes. The calculator is based on maximum medical enhancements. You will need to answer a short questionnaire with one of our advisors to receive your personalised medically enhanced quote.

Can I use the calculator if I still have a mortgage?

Yes. Any existing mortgage or secured loan will normally need to be repaid as part of the equity release. This means the amount you actually receive will be reduced by your outstanding mortgage balance and any applicable setup costs.

Compare equity release plans

The calculator gives you four indicative results. If you want to see the wider range of plans available for a specific amount, you can use our equity release comparison tool.

By providing your details and the amount you'd like to borrow, we can produce a personalised market report showing the plans available to you.

Let's look at a sample extract from an equity release report for a 75-year-old homeowner in England with a £271,000 freehold house.

Ready to see what you could release?

Use our equity release calculator to see what you could potentially release. It requires no personal contact information and provides instant results.