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.

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.

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.