How much equity can I release from my home?

The short answer: most lenders will let you release between 20% and 50% of your home's value through a lifetime mortgage, and your age is the single biggest factor in where you land within that range. A 60-year-old might be offered 25%; a 75-year-old with qualifying health conditions might be offered 45% or more. The figures below explain why, and what they mean in real money.

How do lenders calculate the maximum loan?

The technical term is loan-to-value, or LTV. For standard residential mortgages, LTV is mostly about whether you can afford the repayments. For lifetime mortgages, the calculation works differently: because no monthly repayments are required, the lender is pricing for the risk that compounding interest will exceed the property's value before it is eventually sold.

Older borrowers get higher LTVs because, statistically, the loan has fewer years to compound before the property is sold to repay it. That is a blunt fact, not a value judgement.

Most lenders use actuarial tables that set a maximum LTV for each year of age. A handful of providers, including More2Life and Pure Retirement, publish their age-banded limits openly. Others keep them internal but brokers can access them through sourcing systems such as Air Sourcing or the Key Later Life Finance panel.

What are the typical LTV percentages by age?

The figures below are indicative, based on standard (non-enhanced) plans from mainstream Equity Release Council members as at early 2025. Individual lenders vary, and some specialist plans sit outside these ranges.

Age at application	Typical maximum LTV
55	18%–25%
60	22%–30%
65	28%–36%
70	33%–42%
75	38%–47%
80	43%–52%
85+	Up to 55%

Joint applications are assessed on the younger borrower's age, because the plan continues until the last surviving borrower dies or moves into long-term care. If one partner is 72 and the other is 68, the lender will use 68.

What difference does health make?

Quite a significant one, in some cases. Enhanced lifetime mortgages (sometimes called impaired-life plans) take medical history into account. Conditions such as type 2 diabetes, a history of cardiac events, certain cancers, or even a long history of smoking can qualify you for a higher LTV, sometimes 5 to 10 percentage points above the standard band for your age.

Aviva, Legal & General and More2Life all offer enhanced terms, and the assessment is usually a short questionnaire rather than a full medical. A specialist broker will run this across multiple lenders simultaneously.

I'd suggest that if you have any chronic condition, you always ask a broker to check enhanced eligibility before accepting a standard quote. People leave meaningful money on the table by not asking.

What does this look like in real money?

The percentages above can feel abstract until you apply them to an actual property value. The worked example below uses a realistic scenario.

Does the type of plan affect how much you can release?

Yes, in two ways.

A lump-sum lifetime mortgage gives you the full facility at drawdown, and interest begins compounding on the entire amount immediately. A drawdown lifetime mortgage sets an agreed maximum facility, but you take money in stages. Interest only accrues on what has actually been drawn. For people who do not need a large sum immediately, drawdown typically costs less in the long run, even if the headline facility is identical.

Interest-only lifetime mortgages (where you pay the interest monthly, or in part) are also available from providers including Hodge Lifetime and Retirement Advantage. These keep the capital balance flat, which changes the maths of estate erosion considerably. They are not right for everyone, because they require sufficient pension or other income to service the interest, but they are worth knowing about.

Home reversion plans are a different product entirely and work on a different basis: you sell a share of the property outright rather than borrowing against it. Reversion plans typically involve releasing less than 100% of the market value for the share you sell. They represent a small fraction of the market now that lifetime mortgage rates have become more competitive, but our equity release pillar guide covers both in more detail.

What other factors can limit your maximum?

A few things that catch people out:

An existing mortgage. If you still have £40,000 outstanding on a repayment mortgage, that must be cleared from the equity release proceeds. In the worked example above, that would reduce the net cash from £121,600 to £81,600 before fees.

Property type. Some lenders restrict LTV or decline altogether on certain property types: ex-local-authority flats, properties above commercial premises, homes with significant agricultural land, or certain non-standard construction types. A specialist broker running your case across a full panel will identify these restrictions before you incur valuation fees.

Minimum property value. Most mainstream lenders set a floor of £70,000–£100,000. Below that, the pool of willing lenders shrinks considerably.

Leasehold. Short leases (under 70–80 years remaining after the expected loan term) can be a problem. Some lenders will not proceed; others will lend but at a reduced LTV.

How do you find out your actual maximum?

The most accurate way is to use a whole-of-market broker who can run a live search across the full lender panel. Online calculators, including those on Key Later Life Finance's website or Age Partnership's site, give a reasonable ballpark, but they cannot account for enhanced health terms, property quirks, or the latest lender criteria updates.

Any figure a calculator gives you is indicative only. A formal offer follows a full application, a surveyor's valuation, and a review of title documents.

Regulated advice is required by law before a lifetime mortgage completes. The adviser must be authorised by the FCA and should hold the Certificate in Equity Release (CeRER). They will assess your full circumstances, explain the alternatives (downsizing, benefits entitlement, other borrowing), and provide a personalised illustration showing how the balance compounds over time. That illustration is not optional reading.

One last point worth stating plainly: the maximum you can release is not the same as the amount you should release. Borrowing less than the maximum means less interest compounding, a smaller eventual balance, and more left for whoever inherits. If you only need £40,000, there is no financial benefit to drawing £80,000.

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