‘How much equity can I release from my home?’ is a question that many UK homeowners are asking, according to the latest data from the Equity Release Council.

The industry body’s figures for the third quarter of 2023 show that total lending rose to £716m, taken out by over 7,000 new and 8,000 returning customers.

Whether you are looking to fund home improvements, help out loved ones or pay off your mortgage early, equity release may be able to help.

Calculate now

If you know the value of your home and want to find out how much tax-free cash you can unlock, this free equity release calculator is a quick and simple tool to discover what your options are, without giving lots of personal details. 

Use it online now for results in moments and to receive a free equity release guide.

How to use the equity release calculator

1. Choose how you would like your free guide delivered.
2. Select your property value and click Calculate in Seconds.
3. Enter your name, age and details for where to send the guide and click See your results. 
4. The minimum and maximum sums you can borrow instantly appear on screen.

The equity release calculator

What is equity release? 

Equity release is a type of loan for homeowners aged 55 and over. It allows you to unlock the equity you have in your home as tax-free cash that you can use now. Interest rolls up over time and repayment of the amount you borrow, plus interest, is due only after the last homeowner dies or enters long-term care. This is usually achieved through the sale of your home. 

What are the types of equity release?

A lifetime mortgage is the most popular form of equity release product and the type for which this calculator will provide example figures. It is aimed at homeowners aged 55 and over and enables you to borrow against the value of your home and retain 100 per cent homeownership. There is no requirement to make monthly payments, but you can make voluntary payments if you are able and choose to do so.  

A home reversion plan involves selling all or part of your property while continuing to live in it and is a much less popular option, as you will not be offered the market value of your home.

Do I qualify for equity release?

This is the most important question, so ensure you can answer ‘Yes’ to all of the following: 

• Are you a UK resident? 
• Do you own or do you want to own a property in the UK? 
• Is your property worth at least £70,000? 
• Do you plan to release at least £10,000?
• Is the youngest homeowner at least 55? 

How does the equity release calculator work?

The free equity release calculator works by analysing details of your age and property value to provide an instant initial quote of the minimum and maximum sums you could borrow. 

Your age is important because lifetime mortgage lenders use this to calculate how much you can borrow as a percentage of the value of your home. In general, the maximum amount increases with your age. 

How much can I borrow?

Equity Release Council figures show that the average lump sum lifetime mortgage was £94,806 in the third quarter of 2023.

However, it’s important to remember that factors such as your age, property value and, in some cases your health, will all affect how much you may be able to borrow.

Here are some examples of the type of equity release quote the calculator might produce:

Example: 

Mrs Jackson is 75 and owns a home that has been valued at £350,000. She is interested in releasing equity to clear the remainder of her existing mortgage and to keep some cash to enjoy a higher quality of life. 

She talks to an equity release adviser who, after exploring her personal finances and the potential alternatives to equity release with her, helps her to make the decision to move forward with releasing equity. 

Because of her age and circumstances, Mrs Jackson is eligible for £175,000 but decides to release £100,000 to finance her goals. 

With her adviser, she also considers the benefits of having a lump sum now and the potential impact on her future entitlement to means-tested benefits. In Mrs Jackson’s case, being free of required monthly mortgage payments means that some of her financial burdens are now lifted. 

Why should I use the equity release calculator?

The Telegraph Media Group Equity Release Service calculator is provided by our partner Responsible Equity Release, an expert in the field. It is free and easy to use and you are not obliged to take any further action unless you decide you want to. 

When you fill in the required fields in the calculator, you will immediately see an estimate of how much you could release on the screen. 

You will also be sent a free copy of the Telegraph Media Group Guide to Equity Release via your preferred post or email and receive an invitation to arrange a no-obligation chat with a member of the Responsible Equity Release Information Team to answer your questions.

“We saw the reference to Responsible Equity Release through the Telegraph and followed up from there. We are in our mid 70s and have built up a reasonable investment portfolio. However we had spent a chunk of this buying a boat and were keen to both give our daughter help with moving house and to rebuild our ISA pot by releasing equity from our house.

The whole process, with real help from the RER advisor and legal team, has been straightforward, efficient and personable. I would rate their service as excellent.”

Ian S - via Trustpilot

Things to consider when releasing equity

It is important to always seek expert advice to fully understand how equity release could help you achieve your objectives and the effect it could have on your wider finances. Some additional considerations include:

• Equity release is a long-term commitment that will reduce the value of your estate.
• All products from lenders who are members of the Equity Release Council will come with a no-negative-equity guarantee that ensures you will never owe more than the value of your home. 
• A tax-free cash injection may also affect your entitlement to means-tested benefits.
• Interest is charged on the amount you have borrowed and the interest already accrued – this is called compound interest.

Your expert equity release guide

Once you have received your estimate from the equity release calculator, you may want to learn more about your options. 

After you have filled out your details, if you provided a phone number, then a member of Responsible’s Information Team can be in touch to answer your questions. 

If you’re interested in finding out more after that discussion, then a qualified equity release advice specialist from Responsible Equity Release will be available for a no-obligation consultation at a time that suits you. 

This meeting can be face-to-face, over the phone or via video call. Your specialist will be able to answer your questions and provide a personalised illustration showing how much your equity release plan is likely to cost over time, given the current equity release interest rates.

Your adviser will also talk you through the range of products available to help you decide whether equity release is your best option. They will only ever recommend products from lenders who are members of the Equity Release Council, meaning that they have the highest standards of customer protection.

Read more: 

The above article was created for Telegraph Financial Solutions, a member of The Telegraph Media Group. For more information on Telegraph Financial Solutions click here. 

The Telegraph Equity Release Service is provided by Responsible Equity Release. Responsible Equity Release is a trading style of Responsible Life Limited. Responsible Life Limited is authorised and regulated by the Financial Conduct Authority and is entered on the Financial Services Register () under reference 610205. 

Only if you choose to proceed and your case completes will Responsible Life Limited charge an advice fee, currently not exceeding £1,690.