Lump Sum Equity Release

How to use the max lump sum equity release calculator

To get an estimate of the maximum you could borrow with a lump sum lifetime mortgage, simply input:

• the value of your property (which must be a minimum of £70,000 and in the UK)
• the age of the youngest homeowner (which must be at least 55)
• your postcode

This is the criteria that lenders use when deciding how much money you can borrow.

Your equity release calculator results not only show you how much you could borrow with a lump sum plan, but also how much money you could get using an enhanced plan (if you have any health conditions) or an interest only plan (where you make regular interest repayments).

An introduction to lump sum lifetime mortgages

Lump sum lifetime mortgages are the most popular type of equity release plan. They’re also known as ‘standard’ plans, as they’re the simplest type of scheme. There are typically no monthly repayments to make as the interest accruing ‘rolls up’ and is repaid once the plan ends, along with the initial amount borrowed. This is usually when the last homeowner dies or moves into long term care.

In essence, a lump sum plan does just that - it provides a one-off tax-free lump sum of cash directly into your bank account to spend as you wish. To withdraw any further funds at a later date, you would need to make an additional borrowing request, which may incur a fresh valuation and additional fees.

Because of their simplicity, lump sum plans tend to offer lower interest rates and lenders often allow you to borrow more. Many now come with flexible voluntary payment options. This is ideal if you wish to protect your inheritance, as it allows you to repay between 10%-40% of the original amount borrowed yearly with no penalty.

Lump sum lifetime mortgages could also be the ideal solution if you have ‘big ticket’ plans for your money - such as repaying your mortgage or helping children with a deposit for their first home.

Want to compare lump sum lifetime mortgages?

You can research the full range of lump sum lifetime mortgages currently available using our 'Compare Deals' functionality – a tool that’s only available at Equity Release Supermarket.

You’ll be able to see interest rates for each plan, as well as features and offers from all equity release lenders. Alternatively, try our free intelligent smartER research tool which allows you to conduct your own research on lump sum plans across the whole later life market.

The Lifetime Mortgage results shown in your calculation are only for illustrative purposes and cannot be guaranteed. Figures shown are based on a single life. This is because interest rates are subject to change and can depend on your location and the amount of capital you need to fulfil your personal circumstances. To Understand the features, benefits and risks of a lifetime mortgage, please contact us and ask for your own individual, personalised illustration.