Equity Release Calculator
Your Equity Release Estimate
Maximum LTV for Your Age-
Maximum Release Amount-
Less Outstanding Mortgage-
Cash You Receive-
Interest Projection (Compound)
Total Owed After 5 Years-
Total Owed After 10 Years-
Total Owed After 15 Years-
Total Owed After 20 Years-
Remaining Equity in Your Home
Remaining Equity After 10 Years-
Remaining Equity After 20 Years-
Equity Release LTV by Age — 2026 Rates
| Age | Min LTV | Max LTV | Typical Rate (MER) | Release on £300K Home |
|---|---|---|---|---|
| 55 | 20% | 30% | 6.8% | £60,000 – £90,000 |
| 60 | 25% | 35% | 6.5% | £75,000 – £105,000 |
| 65 | 30% | 45% | 6.2% | £90,000 – £135,000 |
| 70 | 35% | 50% | 6.0% | £105,000 – £150,000 |
| 75 | 40% | 55% | 5.8% | £120,000 – £165,000 |
| 80+ | 45% | 60% | 5.6% | £135,000 – £180,000 |
LTV (loan-to-value) ranges are indicative and vary by provider. Actual offers depend on property type, location and health conditions. Rates shown are average fixed rates for 2026.
Compound Interest: How Your Loan Grows
| Years | £50K Loan at 6.5% | £100K Loan at 6.5% | £150K Loan at 6.5% |
|---|---|---|---|
| 5 | £68,474 | £136,949 | £205,423 |
| 10 | £93,773 | £187,547 | £281,320 |
| 15 | £128,399 | £256,798 | £385,197 |
| 20 | £175,790 | £351,581 | £527,371 |
Important: Because interest compounds (interest is charged on interest), the total owed can grow significantly. On a £100,000 loan at 6.5%, you would owe £187,547 after 10 years and £351,581 after 20 years. This is why independent financial advice is essential.
How Equity Release Works
1
Enter your property value
Input the current estimated market value of your home. Check the Land Registry or Zoopla for recent comparable sales in your area.
2
Enter your age
You must be at least 55 to qualify for equity release. The older you are, the higher the percentage of your property value you can release, because the loan is expected to run for fewer years.
3
Enter any remaining mortgage
If you still have a mortgage, this must be repaid from the equity release proceeds. The remaining amount is the cash you receive.
4
Review the interest projection
See how compound interest causes the total owed to grow over 5, 10, 15 and 20 years. This helps you understand the long-term cost and impact on your estate.
5
Seek independent advice
Equity release is a major financial decision. Always consult an FCA-regulated equity release adviser before proceeding.
Frequently Asked Questions
How much equity can I release from my home in 2026?
The amount depends on your age and property value. At age 55 you can typically release 20-30% of your property value, rising to 40-55% at age 75 and above. For a property worth £300,000, a 65-year-old could release approximately £90,000 to £135,000. All Equity Release Council approved plans include a no-negative-equity guarantee, meaning you will never owe more than your home is worth.
What is the current equity release interest rate in 2026?
The average equity release interest rate in 2026 is approximately 6.5% MER (monthly equivalent rate). Rates vary by age: younger applicants (55) typically pay around 6.8%, while older applicants (75+) may secure rates as low as 5.8%. These are fixed for life. Because interest rolls up (compounds), a £100,000 loan at 6.5% would grow to approximately £137,000 after 5 years and £187,700 after 10 years.
Does equity release affect my state pension or benefits?
Equity release does not affect your State Pension, as it is not means-tested. However, it can affect means-tested benefits such as Pension Credit, Council Tax Reduction, and Universal Credit if the released cash pushes your savings above £10,000 (reduced benefits) or £16,000 (benefits stop). Taking a drawdown facility rather than a lump sum can help manage this impact.
Can I make repayments on equity release?
Yes, many modern lifetime mortgages allow voluntary repayments of up to 10% of the original loan per year without early repayment charges. Some plans also offer the option to pay the monthly interest to prevent the balance from growing. Making even small regular payments can significantly reduce the total amount owed over time.
What happens to my equity release when I die?
When you die or move into long-term care, your property is sold and the equity release loan plus accumulated interest is repaid from the sale proceeds. Any remaining equity goes to your estate and beneficiaries. The no-negative-equity guarantee ensures your estate will never owe more than the property sells for, even if the loan has grown larger than the property value.
Is equity release regulated in the UK?
Yes, equity release is regulated by the Financial Conduct Authority (FCA). All advisers must be FCA-authorised, and the Equity Release Council provides additional consumer protections including the no-negative-equity guarantee, the right to remain in your home for life, and independent legal advice requirements. You should only use an FCA-regulated adviser.
Official Sources & References
- FCA — Equity Release Consumer Guide
- Equity Release Council — Standards and Consumer Protection
- MoneyHelper — Equity Release Explained
- HM Land Registry — Property Value Data
Data verified against official UK government and industry sources. Last checked April 2026.