Interest-Only Lifetime Mortgage Calculator
Compare paying the interest each month on a lifetime mortgage with letting it roll up, and see how the balance grows over your chosen term.
Enter your details below.
How to use
- Enter your home value and the loan amount you are considering.
- Enter the interest rate and how many years you want to project.
- Click Compare Lifetime Options to see the monthly payment, both balances and the remaining equity under each path.
About this tool
A lifetime mortgage lets older homeowners borrow against their home, with the loan usually repaid when they die or move into long-term care. Paying the interest each month keeps the balance flat. Letting it roll up means unpaid interest is added to the loan and then itself earns interest, so the balance compounds upward year after year. This calculator projects both paths at one fixed rate, holding the property value flat so you can see the remaining equity under each option. Equity release reduces the inheritance you leave and can affect means-tested benefits, so independent financial advice is strongly recommended before taking one out.
Frequently asked questions
What happens if I stop paying the interest?
Unpaid interest is normally added to the loan, so the balance starts to grow through compounding. Some products let you pause payments, but the terms vary.
How does this differ from a roll-up lifetime mortgage?
With a roll-up product no monthly payment is made and all interest is added to the loan from the start, so the balance grows faster than on an interest-only deal where payments are kept up.
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All tools · Read the guide: Interest-Only Lifetime Mortgage Calculator