When does the loan overtake the inheritance?

This is the break even that matters to most families. Equity release does not have a point where you come out ahead, the balance only ever grows. But there is a year when the rolled up loan overtakes a chosen share of what your home will be worth, and from then on it is eating into what your family would otherwise inherit. This tool races the growing loan against your growing house value and shows you that tipping point.

Current home value (£)

Amount you release (£)

Equity release rate (% per year)

House price growth (% per year)

Share of the home you want to protect for family (%)

Loan balance against home value, every five years

Year	Loan balance	Home value	Left for family

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Assumptions: the loan is compounded once a year at a fixed rate with no repayments. The home grows at the rate you enter, also once a year. Both growth rates are guesses about the future and the real figures will differ. House prices can fall as well as rise. The no negative equity guarantee on Equity Release Council plans means your family can never owe more than the home sells for, so the loan can never exceed 100% of the value. This shows the shape of the trade off, it is not a quote or a forecast.