Important: This calculator is for illustration purposes only and does not constitute financial advice. Roll-up interest projections are based on a fixed annual rate accruing daily (annual rate ÷ 365, compounding daily) with interest added to the balance monthly, and assume no repayments are made unless specified. Voluntary repayments are modelled with a typical ERC-free allowance of 10% of the outstanding balance per year; your lender's allowance and terms may differ. Actual balances will vary depending on the lender's terms, compounding frequency, and any charges applied. Property value projections assume a constant annual growth rate and are not guaranteed. This tool does not account for Early Repayment Charges, product fees, or other costs.
Roll-up Interest Calculator
Wondering how a lifetime mortgage balance grows over the years, and how much of your home will still be yours? This calculator shows you exactly that. Enter your loan amount, interest rate and how long you expect the plan to run, and you'll get a clear year-by-year picture of how the balance changes, how your equity holds up, and what a difference voluntary payments can make. For a plain English explanation of how roll-up interest works and what it means in practice, read our guide: How Does Interest Roll-Up Work on a Lifetime Mortgage?
There are no personal details to fill in. Just the numbers that matter.
Frequently Asked Questions
What is roll-up interest?
Roll-up interest means that instead of paying the interest each month, it is added to your outstanding mortgage balance. The following month, interest is charged on that larger balance, and so on. This is how most lifetime mortgages work. It means there are no monthly payments to make, but the total amount owed grows over time.
How quickly does the balance grow?
It depends on your interest rate. At 6%, a £100,000 lifetime mortgage roughly doubles in around 12 years. At 8%, it doubles in closer to 9 years. The calculator above will show you the exact year-by-year figures based on whatever rate you enter. The growth can feel surprising at first, but it is worth remembering that property values also tend to rise over time, and that your equity guarantee means the debt can never exceed the value of your home.
Will the debt ever be more than my home is worth?
No. All equity release plans approved by the Equity Release Council include an equity guarantee. This means you, or your estate, will never owe more than your home is worth when it is sold, regardless of how long the plan has been running. If the mortgage balance ever exceeded the sale price of the property, the lender would write off the difference. You will never be left with a debt to pass on.
Can I make payments to slow the interest building up?
Yes. All lifetime mortgages that we recommend allow you to service the interest if you wish, meaning you pay the interest each month and the balance stays the same. Most plans also allow you to make voluntary payments of up to 10% of the outstanding balance each year without facing an Early Repayment Charge, so you can pay down the balance at a pace that suits you. Even small regular payments can make a meaningful difference to how much equity remains in your home over time. Switch on the voluntary payments option in the calculator to see the effect.
Will equity release affect what I leave to my family?
A lifetime mortgage will reduce the equity remaining in your estate, since the outstanding balance is repaid from the sale of your home when you pass away or move into long-term care. However, many clients use equity release to gift money to family, fund home improvements, or simply enjoy a more comfortable retirement while they are able to. Voluntary repayments, and some plans include ring-fenced inheritance protection features, can help preserve a share of the property for your family if that matters to you.
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There will be a fee for mortgage advice. The precise amount will depend upon your circumstances but we estimate that it will be £495 for a residential/buy to let mortgage or £1495 for an equity release/retirement mortgage.
Aspect Mortgages Limited is authorised and regulated by the Financial Conduct Authority and is entered on the Financial Services Register (https://register.fca.org.uk/s/) under FCA reference 305352. The FCA do not regulate Business Buy to Let Mortgages.
As independent advisers we have access to the whole market, except for deals that you can only obtain by going direct to a lender. Registered in England and Wales No: 05103801. 16 St Thomas' Road, Chorley, PR7 1HR.
A Lifetime Mortgage may reduce the value of your estate and could affect your entitlement to benefits. To understand the features and risks please ask us for a personalised illustration.
Your home may be repossessed if you do not keep up repayments on your mortgage.
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