Lifetime Mortgage Interest Calculator

Interest is usually added to the loan and then charged on the new, higher balance. This is called roll-up or compound interest. Unless you make payments, the amount owed grows every year. This calculator adds interest once a year. Your personalised illustration will show exactly how your plan works it out.

Under Equity Release Council standards, a lifetime mortgage rate must be fixed, or capped if it is variable, for the life of the loan. The rate you are offered depends on your circumstances and the plan you choose.

Yes. Change the interest rate box to see how a different rate changes the balance. In our example, an illustrative 5% instead of 6.5% gives a 15-year balance of £124,736 rather than £154,310. The rate is only part of the picture. Fees, early repayment charges and plan features matter too.

Not with a plan that meets Equity Release Council standards, as long as the plan’s conditions are met. The no negative equity guarantee means you or your estate will never owe more than the home is worth after reasonable selling costs, provided it is sold for the best price reasonably obtainable.

Not with a standard roll-up lifetime mortgage. Many plans let you make optional payments to reduce the interest that builds up. Some plans are designed with required monthly payments instead. If you take one of those, you must keep up the payments.