A standard way of showing an interest rate over a year, including the effect of compounding. It can help compare rates, but it does not show every cost or feature of a plan.
A standard way of showing an interest rate over a year, including the effect of compounding. It can help compare rates, but it does not show every cost or feature of a plan.
Equity release may involve a lifetime mortgage, secured against your property, or a home reversion plan. It will reduce the value of your estate and impact funding long-term care.
This entry follows Equity Release Council. It is a plain-English explanation of how the term is used in the UK, not a quotation, and it does not override a provider’s own wording.
Checked 7 September 2026. The whole vocabulary sits on one page, so you can look up two words in the same sentence without going anywhere: see this entry in the full glossary.
How rolled-up interest works, with the arithmetic
See what the debt actually does over time, before deciding anything.
Read the guide called How rolled-up interest works, with the arithmetic →Equity release may involve a lifetime mortgage, secured against your property, or a home reversion plan. It will reduce the value of your estate and impact funding long-term care.
One guide on this site uses the term. Here is the sentence, and where it sits.
“MER is the monthly equivalent rate and AER is the annual equivalent rate.”
Equity release interest rates, and how to read one →Short answers to the things that come up most. None of it is advice, and every figure on this page carries its source.
A standard way of showing an interest rate over a year, including the effect of compounding. It can help compare rates, but it does not show every cost or feature of a plan.
It follows the Equity Release Council. It is a plain-English explanation of how the term is used in the UK rather than a quotation, and it does not override a provider's own wording, the conditions of a plan you hold, or advice from your solicitor.
On the guide "How rolled-up interest works, with the arithmetic", which helps you see what the debt actually does over time, before deciding anything. A glossary entry explains a word. The guide works through what it actually means for a decision, with its sources and the date each was checked.
No. There is nothing on this page to fill in and nothing is collected by reading it. Looking up what a word means is not a decision, and we are not able to advise you about your own circumstances in any case.
Equity release may involve a lifetime mortgage, secured against your property, or a home reversion plan. It will reduce the value of your estate and impact funding long-term care.
One qualified equity release adviser. They will go through your figures and tell you if there is a better answer. It costs nothing and commits you to nothing.
Google Analytics, Microsoft Clarity and Vimeo. Say no and none of them loads. What each one stores, and what Microsoft use theirs for.