Our lifetime mortgage calculator for UK residents 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 some 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.
Fill out basic details about yourself and your property
Press the 'calculate' button
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 personalised lifetime mortgage estimate is based on the information you provide us in our lifetime mortgage calculator. Your estimate will include:
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.
Our lifetime mortgage calculator uses two main factors to quickly work out how much tax-free cash you could release:
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.
At Key, we know that applying for a lifetime mortgage is a big step. Our calculator is designed to help you to find out how much you could release. Our jargon buster is also available to help you understand the more complicated terms in this guide below. Here's what to expect:
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.
If you're thinking about taking out a lifetime mortgage, there are certain criteria that you'll need to meet to qualify.
To qualify:
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.
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ⓘ 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.
If you're considering a lifetime mortgage, it's important you understand the product in detail. Here are some useful things to think about. All our equity release advice relates to Key lifetime mortgages only - a loan secured against your home.
Your specialist lifetime mortgage adviser will explain:
Your lifetime mortgage adviser will also outline the following important things to think about:
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
It's important to know that you should always think carefully before securing a loan against your home to repay existing debt.
A lifetime mortgage could help you live the later life you want. See how much you could release from your property with our UK lifetime mortgage calculator.
No, the funds that you release are entirely tax-free.
However, your tax position could be affected.
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.
Our qualified equity release advisers will also talk you through the benefits and drawbacks of the two 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
A 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 (which may be higher or lower than the original interest rate)
If you're interested in finding out more about a lump sum or drawdown lifetime mortgage, our calculator will give you a general estimate and then you can speak to one of our advisers for more details about how they compare.
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.
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.
Back to "What's in this guide?
Unless you choose to do so, there are no repayments to make on a lifetime mortgage until the plan comes to an end. As a result, you pay interest not only on the loan itself, but also on the interest that’s already been added to the loan. But there are ways you could reduce the total cost of borrowing of your lifetime mortgage, which we outline in this guide.
Whether interest is added to your lifetime mortgage on a monthly or annual basis is dependent on your plan. During that first period, though, the interest is charged and added to the original loan amount - the sum of tax-free cash you unlock from your home’s value.
Year | 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 |
This example is for illustrative purposes only and uses the average release amount of £81,703 and MER (monthly equivalent rate) of 6.74% - 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?"
You could potentially save thousands over the course of your plan with a drawdown lifetime mortgage. This is because you only pay interest on the funds you release. It's important to keep in mind that future drawdowns are subject to the prevailing interest rate and aren't guaranteed. Here's an example to help you understand how this could work for you.
ⓘ Illustrative example
This example is for illustrative purposes only and uses the average release amount of £81,703 and monthly equivalent rate of 6.74% (future drawdowns will be charged at the prevailing interest rate) - Key Market Monitor Q1, 2023.
Mrs Lewis and Mr Davies both want to release £81,703, but opted to take it out in different ways to meet their requirements.
Over the same 15-year period, borrowing the same amount of money, Mr Davies saved almost £32,851 in interest charges compared to Mrs Lewis.
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 idea of how much you could release. Your equity release adviser will be able to give you more information on interest rates.
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 completed 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:
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?
ⓘ 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.
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.ⓘ If another product is more suitable, we'll refer you to a different adviser within Key Group who can help. If you go ahead, you'll only be charged the same £1,299 advice fee you'd pay with us, even if their fee is usually higher.
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.