• Open until 8:00pm Today
    • Monday - Thursday 9:00am - 8:00pm
    • Friday 9:00am - 5:30pm
    • Saturday 9:00am - 5:00pm
    • Sunday Closed All Day
    • Our Address

      Key, Baines House,

      4 Midgery Court, Fulwood,

      Preston, PR2 9ZH

  • UK FREEPHONE 0808 252 9170

Lifetime mortgage calculator

  • See how much you could release
  • ​Quick, easy and secure
  • Instant estimate, in seconds

What is a lifetime mortgage calculator?

Our lifetime mortgage calculator will give you an idea of how much money you could release with a  lifetime mortgage with Key. To get your quote, you'll just need to tell us the basic details about you and your property, and we'll be able to get your quote to you in no time. From there, you can decide if taking out a lifetime mortgage is right for you.

How to use our free lifetime mortgage calculator in 3 easy steps

  1. Fill out basic details about yourself and your property

  2. Press the calculate button

  3. See your personalised lifetime mortgage quote

If you're unsure about using our lifetime mortgage calculator, contact our team directly or request a callback to discuss your equity release options.

Your lifetime mortgage calculation explained

Your personalised lifetime mortgage estimate is based on the information you provide us in our lifetime mortgage calculator. Your estimate will include:

  • The maximum amount you could release tax-free

  • An optional property eligibility assessment to help you establish if your property may be eligible for equity release

  • The chance to arrange a no-obligation consultation with one of our expert advisers to help understand your options

  • Info on other options, what costs you may have, and the flexible features of a lifetime mortgage

The amount you can release is dependent on your personal circumstances and is subject to survey

You'll also be able to download your estimate as a PDF document so that you can take the time to read through your lifetime mortgage calculation.


Calculate now

What is a lifetime mortgage?

A lifetime mortgage is a type of equity release and is a loan secured against your home. It's accessible to you if you're a homeowner aged 55 or over, releasing tax-free funds that are tied up in your property.

Retain home ownership

  • With a lifetime mortgage, you’ll still own your own home. And the plan typically won’t come to an end until you, or the last remaining applicant, either passes away or enters long-term care. 

No monthly repayments

  • There are typically no monthly repayments to make, as the loan, plus roll up interest, is repaid when the plan comes to an end. If you want to reduce the long-term cost of your plan, you can make repayments of up to 10%-12% without any early repayment charges.

Choose how you get your funds

  • You can release funds from your home in a one off lump sum or a series of smaller amounts following an initial release, which is known as a drawdown lifetime mortgage.

Do I qualify for a lifetime mortgage?

If you're thinking about taking out a lifetime mortgage, there are certain criteria that you'll need to meet to qualify.

To qualify:

  • You must be aged 55 or older (for joint applications, both applicants need to be 55 or over)

  • You need to own a home within the UK (excluding the Isle of Man and the Channel Islands) that is your main residence

  • Your property must be worth a minimum of £70,000

Even if you meet these requirements, it’s important to remember that you can’t take out a lifetime mortgage without first taking advice from a qualified equity release adviser. This is a regulatory requirement.

At Key, we have a team of friendly and professional equity release experts who are always on hand to answer any questions that you might have. They will talk you through your available options.

Calculate now

ⓘ Did you know...

Why not try our later life mortgage finder? It may be that we can still help you take control of your later life finances.

Back to "What's in this guide?"

How much equity could I release from my property?

Our latest research shows Key lifetime mortgage customers had access to £79,981 from their properties (From Jan-March 2023). You'll just need to release a minimum of £10,000.

How is my lifetime mortgage estimate calculated?

Our lifetime mortgage calculator uses two main factors to quickly work out how much tax-free cash you could release:

  • Property value: The minimum property value to be eligible for a lifetime mortgage is £70,000 - a higher property value will usually result in a higher lifetime mortgage calculation

  • Age: All applicants must be aged 55 or over to qualify - if you're applying as a couple, the amount of equity you could release will be based on the youngest applicant

The exact amount that you can release will be a certain percentage of your home's value and varies between people and properties. Our lifetime mortgage calculator can give you an estimate of the amount of equity that you can expect to release on your property. It's worth noting that this is an estimate. If you go ahead with the lifetime mortgage, the total amount available will be subject to an independent property survey.

If you meet the eligibility requirements, our advisers will assess your application and give you a more accurate amount that you could release.

Calculate now

No, the funds that you release are entirely tax-free.

However, your tax position could be affected.

Compare lifetime mortgage plans

Our lifetime mortgage calculator allows you to compare various details. This includes the maximum lifetime mortgage amount you could release tax-free, the other borrowing options you may have, and ways you can manage your total cost of borrowing.

Our qualified equity release advisers can also help you compare features to personalise your plan based on what matters most to you.

No negative equity guarantee

  • All our plans meet Equity Release Council standards which means they come with the no negative equity guarantee. This saves you passing on any debt to your beneficiaries through equity release.

Downsizing protection

  • Downsizing protection allows you to move to a new home and repay the plan without any early repayment charges, as long as you move a minimum of five years after the start date of your loan, this only applies when the new property does not meet the lenders criteria.

Our qualified equity release advisers will also talk you through the benefits and drawbacks of the 2 different types of lifetime mortgage plans, a lump sum lifetime mortgage and a drawdown lifetime mortgage

✓ Lower interest rates
Lump sum lifetime mortgages sometimes come with a lower rate of interest compared to a drawdown lifetime mortgage, which can help reduce your total cost of borrowing.

✓ Interest rates don’t change
When you release your funds the money released is subject to the fixed interest rate at the time.

ⓘ May be more expensive
As compound interest will be rolled up on the money you’ve released, you will end up owing more if you take all your available cash in one go. 

ⓘ Limited ability to release further funds
With a lump sum lifetime mortgage, you can’t release further funds unless you apply for a further advance. This is subject to the lender’s criteria, your age and your property’s value at the time of application. This also requires advice and is subject to fees.

✓ Release funds when needed
drawdown lifetime mortgage offers more freedom than a lump sum plan, allowing you to release money when you need it.

✓ Save on interest
A drawdown lifetime mortgage also allows you to potentially save a considerable amount in interest over the lifetime of your plan, as the interest only accrues on the money you’ve released

ⓘ Your drawdown facility isn't guaranteed
Your lender may have the option to withdraw your drawdown facility.

ⓘ You don't know what interest rates will be like in the future
If you choose to make a drawdown, the funds will be subject to the prevailing, fixed interest rate at the time

What is the cost of a lifetime mortgage?

The total cost of borrowing is determined by the amount borrowed, interest rate and length of loan together with any fees incurred.

In addition to getting expert equity release advice from us, you’ll need to know the fees for equity release. By finding out what the initial charges are, you’re in a good position to take your application forward.

Ultimately, the initial costs you pay in order to access your equity release will depend on your provider and the product that you select.

When you’re working out the cost of equity release, there are four fees that you’ll need to budget for. Here, we guide you through what these different services involve. You will be familiar with these as they all form part of the process you'll have followed when taking out your mortgage.

Surveyor's valuation

  • If applicable, this is usually paid with the application

Solicitor's fees

  • This is typically paid when you receive your tax-free funds on completion

Lender's arrangement fee

  • If applicable, this is usually paid on completion, and you receive your tax-free funds

Our advice fee

  • Our fixed advice fee of £899 is only payable on completion

There's usually nothing to repay on your lifetime mortgage until you or the last remaining applicant die or move into long-term care. However, you may choose to repay some or all of the monthly interest that accrues over the life of the mortgage.

This is something to consider if you have the financial means as it can reduce the amount that you owe in the end. Otherwise, the interest accrues and is added to the loan in the form of compound interest.

An example of how compound interest accrues over 15 years

Product Balance at the start of the year MER¹ Interest added² Balance at the end of the year³
Year 1 £81,703 6.74% £5,681 £87,384
Year 2 £87,384 6.74% £6,075 £93,459
Year 3 £93,459 6.74% £6,497 £99,956
Year 15⁴ £209,360 6.74% £14,555 £223,915

Initial release amount of £81,703. Plan subject to a fixed interest rate of 6.74% MER (Monthly Equivalent Rate) - Key Market Monitor Q1, 2023 
¹ With all Key lifetime mortgages, the interest rate is fixed throughout the life of the plan
² Interest is charged on balance as at the start of the year, not the original amount
³ The balance at the end of the year including compound interest

⁴ This cycle continues throughout the life of the plan

Back to "What's in this guide?"

How can I reduce the cost of my lifetime mortgage?

All of Key’s lifetime mortgages come with options which could help to reduce the total cost of the borrowing if that’s important to you; for instance, if you wish to leave a larger inheritance to your loved ones.

How making repayments can help you manage your total cost of borrowing

Even though there are typically no monthly repayments to make with a lifetime mortgage, all our plans come with the option to make ad-hoc or regular repayments to help reduce your total cost of borrowing. 

Even if you’re only able to make small repayments, it will help reduce the amount of interest you pay over the lifetime of your loan.

ⓘ Illustrative example

In this example, if you were to borrow £81,703, with a fixed 6.74% MER interest rate (monthly equivalent rate), and make no repayments at all, after 15 years, your total cost of borrowing would be £223,915. However, by making a monthly £250 repayment, after 15 years, you’d owe £146,440 - with a total cost of borrowing, including repayments, of £191,440. This means, by repaying £250 a month, you, and your beneficiaries, could benefit from a £32,475 net interest saving.

Initial release amount of £81,703. Plan subject to a fixed interest rate of 6.74% MER. Interest and payments shown over a 15 year period. Axis shows the total cost of borrowing. This example is for illustrative purposes only. - Key Market Monitor Q1, 2023

Remortgage to another equity release plan in the future

If interest rates reduce in the future, you may have the option to remortgage your current plan to secure a lower rate. Although this isn't guaranteed and may be subject to early repayment charges.

Consider a drawdown plan

With a drawdown lifetime mortgage, you only take out the money you need when you need it. This can help reduce your total cost of borrowing, as interest is only charged on the money you release, rather than the full amount available.

More on lump sum vs drawdown lifetime mortgage

Back to "What's in this guide?"

How could a drawdown lifetime mortgage reduce my cost of borrowing?

As you only pay interest on the funds you release, you could potentially save thousands over the course of your plan with a drawdown lifetime mortgage. Here's an example to help you understand how this could work for you. 

ⓘ Illustrative example

This example is for illustrative purposes only and shows there are two customers who both have access to an average release amount of £81,703 at an average interest rate of 6.74% (future drawdowns will be charged at the prevailing interest rate) - Key Market Monitor Q1, 2023.

Customer A

Customer A decides to take all their cash in one go through a lump sum lifetime mortgage, so interest is charged on the full release amount from day one.

(Orange bar)

Customer B

Customer B, meanwhile, takes an initial loan of £51,703 to meet their immediate requirements, so interest is only charged on this lower release amount. Customer B then decides to make two further £15,000 drawdowns over time, taking their total release amount to £81,703.

(Blue bar)

Customer B saves £32,851 in interest charges
While Customer B still borrows the same £81,703 over 15 years, because they take their money in stages, their total cost of borrowing is lower as interest is only charged when they release their funds. As a result, Customer B saves almost £32,851 in interest charges over the total life of their plan. This example is over 15 years but it could be longer or shorter. Axis shows the total cost of borrowing.

More on lump sum vs drawdown lifetime mortgage

What are the typical lifetime mortgage interest rates?

Lifetime mortgage interest rates vary depending on the plan you take out and your circumstances. Our lifetime mortgage calculator will give you an illustrative rate based on the details you put in.

With a lifetime mortgage, the interest accrues, then rolls up and is added to the loan. This is also known as compound interest. The interest rate you get will be specific to your circumstances and is fixed for the life of the loan.

Representative example

5.98% AER

Lowest rate with Key

6.96% AER

Rate most Key customers received, or less

7.26% APR

Overall cost for comparison

All rates correct as of 3rd December 2023. This is based on customer data from the last 60 days, apart from Key's lowest rate. Interest rate received and plan features are subject to eligibility. Ask for a personal illustration.

Interest rates explained

  • AER stands for Annual Equivalent Rate. It shows what the interest rate would be if the interest was compounded each year.

  • APR stands for Annual Percentage Rate. It's the cost you pay each year to borrow money, including fees, expressed as a percentage. 

Our equity release calculator will give you an illustrative rate based on the details you put in.

Calculate now

Back to "What's in this guide?"

What are the benefits and drawbacks of a lifetime mortgage?

If you're considering a lifetime mortgage, it's important you understand the product in detail. Here's some useful things to think about. 

Lifetime mortgage benefits

Your specialist lifetime mortgage adviser will explain:

  • You can unlock cash from your home, tax-free, to help meet your needs in later life
  • You’ll always retain full ownership of your home and can stay in it for as long as you wish with a Key lifetime mortgage
  • You can choose to make reduced or no monthly repayments to suit your circumstances
  • You’ll never owe more than your home’s worth with a Key lifetime mortgage
  • You may be able to remortgage your plan in the future to release further funds or secure a better interest rate, although this isn’t guaranteed and may be subject to early repayment charges

Potential drawbacks

Your lifetime mortgage adviser will also outline the following important things to think about:

  • A lifetime mortgage is a loan secured against your home and subject to compound interest, meaning the amount you owe can grow quickly
  • Equity release will reduce the value of your estate and may affect your entitlement to means-tested benefits
  • Equity release may leave you with limited or no property equity remaining
  • Equity release will reduce your financial options in the future
  • A lifetime mortgage is a long-term financial product and is not designed to be fully repaid until the death or entry into long-term care of the last remaining borrower, otherwise early repayment charges may apply

What can I use a lifetime mortgage for?

You can use your lifetime mortgage funds in a variety of ways. Take a look at our customer stories, which provide examples of how our honest advice has helped thousands of people to enjoy their later lives.

You need to consider what it will be used for before you get the application process underway. This will ensure that you're borrowing the right amount. The money you unlock is tax-free and can be spent in a variety of ways, such as:

"Our customers often use equity release to clear existing debts, such as a mortgage, credit cards or loans. It’s also used to financially support loved ones when they need it most, for example, contributing towards a child or grandchild’s first house deposit, as well as home improvements, with a large portion of our customers using some of their tax-free cash to make their property more enjoyable to live in or more accessible in later life." 

- Rachel East, Divisional Head of Advice

A lifetime mortgage could help you live the later life you want. See how much you could release from your property with our quick and easy calculator.

Back to "What's in this guide?"

How long does it take to process my application for a lifetime mortgage?

We make the process as quick and easy as possible. Unless we need further information from you, most of our applications are checked, approved and complete within 8-12 weeks on average. As each application is unique, however, timescales can't be guaranteed.

Applications for a lifetime mortgage include the following steps:

Try our free calculator

You find out if you're eligible using our free, no-obligation lifetime mortgage calculator

Speak to an adviser

You then speak to one of our qualified advisers on a date and time that works for you using our callback service

Discuss legalities

You will discuss the legalities with your independently appointed solicitor

Receive money

You'll receive your money to spend in a variety of ways

Why choose Key?

It's a regulatory requirement for anyone considering equity release to get specialist advice before taking out a plan. So why should you choose Key?

We're regulated experts

Key is regulated and a proud member of the Equity Release Council

Trusted award-winners

We've won 80+ awards and we've received 17,000+ excellent Trustpilot reviews, making us the UK's most trusted equity-release specialist


Highly experienced

We have over 25 years' experience in helping more than a million over-55s with tailored equity release advice on later-life products. Our knowledge means that, once we've taken the time to understand your needs, we’ll have a sound idea of what the right plan is for you.

Customer stories

ⓘ Did you know...

Over the years, our customers have benefitted from expert advice, experience and professionalism from Key. We've been rated 'Excellent' on Trustpilot and you can check out the great things our customers have to say about our lifetime mortgage plans.

All members of Key I spoke to were helpful and friendly, nothing was too much trouble for them

Ms Kane

"I recommend Key to anyone looking to take out equity from their home. My request went through very quickly, I already have my money and am starting to do the projects I wanted the money for. I am very pleased with the outcome and Key's staff."

I must say that Key were very helpful and understanding through the whole process

Mr Griggs

"We were put under no pressure to complete and constantly told that we could back out at any point prior to completion. They fully explained all of the Implications and costs of what we were thinking of doing. We had our own adviser who was patient with us and explained everything to us. So if you are thinking about equity release I would recommend Key."

We used Key to provide funds to upgrade parts of our house

Mr Dennison

"The Company were professional, supportive and explained the process very clearly. The meetings with Key which were conducted on Zoom were informative and friendly and at no time did we feel pressured. It was a positive experience. We would recommend Key to anybody considering equity release."

Things to consider 

  • All our equity release advice relates to Key lifetime mortgages only - a loan secured against your home
  • The loan, plus compound interest, is typically repaid through the sale of the property when the last remaining applicant passes away or moves into long-term care
  • £899 advice fee only payable on completion

Calculate how much you could release with a lifetime mortgage today

We hope you've found our lifetime mortgage calculator and guide helpful. If so, get your free estimate today. 

We understand a lifetime mortgage can feel complicated and we want to help our customers understand their options. If you have any further questions, feel free to contact our team today.

We’re here to help you via email or phone on 0808 252 9170. Lines are open Monday–Thursday from 9am–8:00pm, Friday 9am-5:30pm and Saturday from 9am–5pm.

Calculate now

Your other options

Before deciding on equity release, it's important you're aware of some of your other later life finance options.

Here are some more alternatives that may be more suitable for you:

Equity release costs

Knowing the costs associated with equity release and how to help manage them is important.

Here are some helpful guides to give you a better understanding:

Read our equity release articles

Equity release isn't something you should rush into. Read our RetireWise articles to learn more about how it works and whether it's right for you.

How does equity release work?


How long does equity release take?

Is equity release safe?

Page last updated: Monday 23 October 2023