See how your lifetime mortgage balance grows through interest roll-up and project remaining equity at key milestones.
Reserve funds are assumed drawn in equal tranches over the first 5 years for projection purposes.
Important: This calculator is for illustrative purposes only. Equity release is a significant financial decision. Always seek independent financial advice from an adviser qualified in equity release (look for the SOLLA or ERA accreditation). All Equity Release Council plans include a no-negative-equity guarantee.
Equity release drawdown is a type of lifetime mortgage where you release an initial lump sum and set aside a cash reserve facility to draw on later. Interest only accrues on the money actually released, not the total reserve. This can be tax-efficient and reduce the rate at which interest rolls up compared to taking a full lump sum.
With a roll-up lifetime mortgage, interest is added to the loan balance each month rather than paid monthly. Because you are paying interest on interest, the balance grows exponentially over time. For example, £50,000 at 6% rolling up for 15 years would grow to approximately £119,828.
Yes. All Equity Release Council (ERC) approved products include a no-negative-equity guarantee. This means that no matter how large the debt grows due to interest roll-up, neither you nor your estate will ever owe more than the value of your home when it is sold. Always choose an ERC-approved provider.
A lump sum lifetime mortgage releases all funds at once, and interest accrues on the full amount immediately. A drawdown plan releases an initial amount plus a reserve facility you can draw on as needed. Drawdown is typically more cost-effective as interest only rolls up on funds actually drawn.
Yes, most lifetime mortgages allow partial or full repayment, but early repayment charges (ERCs) can be significant — sometimes 5–25% of the amount repaid depending on the plan and timing. Some plans offer penalty-free repayment allowances of up to 10% per year. Check the terms carefully before taking out equity release.