This calculator reveals in under 60 seconds how the lifetime mortgage rolls-up over time. Make overpayments to reduce interest costs and see how rising house prices offsets the mortgage to preserve property equity for your beneficiaries.
How to use the calculator?
Enter the QuickStart figures first, then refine these by calculating again for more accurate results.. Test if you can preserve equity by targeting a house price rise of 1% pa shown in the results or a rise you believe is realistic for your area by changing the equity you take.
This is based on fixed interest rates for the equity required and age of the youngest person determines the maximum equity you can release. This guide shows for different ages the percentage of equity release to property value.
|Age||6.5% pa||4.0% pa||3.0% pa|
Using the targeted interest rates of 6.5%, 4.5% and 3.0% per year, select the maximum equity to release for these ages. A 70-year old can release 44% with an interest rate of 6.5% pa and with 34% equity the interest rate is 3.0% pa.
For a lifetime mortgage the timescale in years is when the property is sold, you move into long term care or the death of the last survivor. For a joint mortgage the timescale can be the life expectancy for the youngest person.
|55||27 years||30 years|
|60||23 years||26 years|
|65||19 years||21 years|
|70||15 years||17 years|
|75||12 years||14 years|
|80||9 years||10 years|
|85||6 years||7 years|
The above table is a guide of National life expectancy rounded up to the next full year although and you may wish to use a different timescale.
Historically house prices increase over time which can offset the roll-up mortgage to preserve equity. Enter the QuickStart figure of 1% pa for house price rise and in the results, we show you the change in prices you need to preserve equity. This should be lower than the actual rise in house prices shown in the results for your property type and area, otherwise calculate again by releasing less cash.
Providers let you make overpayments up to 10% of the initial loan each year penalty free. Enter the QuickStart figures of £50 or £75 per month to see the interest you can save or how it reduces the house price rise you need to preserve equity. Calculate again based on what you can afford or pay the interest each month, see large Table in the results.
If you have an existing residential mortgage you must repay this to the lender using equity release and can add an additional amount of cash up to the maximum allowed. For an existing equity release plan, add any early repayment charge to the outstanding loan and enter this as the equity required. You can continue to pay interest, make a smaller overpayment or allow the interest to roll-up.
Equity Release may involve a Lifetime Mortgage or a Home Reversion Scheme. To understand the features and risks, please ask for a personalised illustration. Equity Release may affect your entitlement to means tested state benefits and will impact on the size of your estate. For Equity Release London City Mortgages charge a fixed fee upon completion of £695. For Mortgages a fixed fee is charged on application. Typically this is from £295 up to £495 for the services selected.
Equity Release - Equity Released from your home will be secured against it. Mortgages – Your home may be repossessed if you do not keep up repayments on your mortgage or other loans secured against it. Think carefully before securing other debts against your home. The information contained in this website is subject to the UK regulatory regime and is therefore intended for consumers based in the UK.
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London City Mortgages Limited is a registered company in England & Wales under company number 09278987. London City Mortgages Limited is an Appointed Representative (FCA no. 655965) of Blackstone Moregate Limited (FCA no. 459051) which is authorised and regulated by the Financial Conduct Authority. LCM and LCM Equity Release are trading names of London City Mortgages Limited.