Tag Archives: Equity Release Schemes

Is an Enhanced Equity Release Calculator Available Yet?

Enhanced equity release calculator tools are available online. These calculators are specific to the enhanced, impaired, or ill health lifetime mortgage schemes on the market rather than home reversion or other lifetime mortgage products. Given the specific nature of these mortgages, the calculator has to take into account more information than the standard lifetime mortgage.

History of Enhanced Equity Release Plans
A decade ago enhanced equity release plans were on the market through Hodge Lifetime and Partnership Assurance. They provided enhanced options through home reversion plans. However, with changes made by the then Financial Services Authority, now the Financial Conduct Authority, the plans were discontinued, leaving the market without any enhanced home reversion or lifetime mortgage schemes.

In more recent years, new lenders have joined the market offering enhanced lifetime mortgage plans. Partnership re-entered followed by new companies like More2Life, Aviva, and Just Retirement. By new we mean new to the enhanced equity release plan, and not necessarily to the market as a whole.

Following the principles of enhanced annuity, enhanced or impaired equity release schemes use health as a way to provide the maximum equity release amount, which is where the enhanced equity release calculator comes in. Be aware that the more severe the illness is the greater the maximum equity amount will be.

Lenders Supplying Tools
Some brokerages and websites have developed the enhanced equity release calculator to help supply the maximum lump sum an individual may be able to take out of their home. Unfortunately, accuracy is difficult to predict due to the myriad questions on the health and lifestyle questionnaire which determines a person’s life expectancy. This questionnaire is coupled with a mortality indices table based on age and illness to give an applicable value.

This means the calculator is designed to give you the maximum amount based on the worst case scenario. You may or may not be a person in the worst case scenario, but that is the result you will get, therefore, you need to speak with a broker before deciding if this loan is truly right for you.

What can Brokers Do?
An independent financial broker specialising in equity release schemes should be contacted once you have a beginning figure for an enhanced equity release product. The adviser will take the enquiry beyond the standard calculator questions to see if there are any other factors that could release the maximum lump sum or if you will only be able to get a smaller amount. The enquiry is based on a Key Facts Illustration (quote) from relevant providers in the market.

A broker is able to discuss your situation with financial companies lending the money for lifetime mortgages. They can discuss whether there are other factors that might release more or see what current products are available to you.

You should be aware that even if something is advertised on TV, the Internet, radio, or through a calculator calculation, you may not be able to get that same product. This is where the broker comes in. They have resources you do not have available.

Why Use the Calculator
You are probably asking why you should use the calculator at all if you still have to speak with a broker. The main reason to use it is to see the potential maximum lump sum. If the maximum lump sum is not anywhere close to the funds you hope to unlock, it gives you an idea of whether lifetime mortgages and other equity release products are right for you.

Additionally, it tells you whether your ill health is a qualifying factor to release more equity than a standard lump sum. It might be a guide number that results, but it does prove whether going on to the next step and speaking with a broker is worth your time.

While the value might change to a lower one, the original calculation result gives you enough of an answer to get started. There are also times when the calculator is not giving you a high enough number because you have multiple health factors. If you can find a maximum lump sum that works for you based on what you input into a calculator and a broker can get more released it might work out better for you. Of course, as you use the enhanced equity release calculator, you do need to remember it is only an estimate. You always want to speak with a qualified professional who is independent to ensure you are getting the very best product for you.

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Invest Time Finding an Equity Release Calculator to Determine the Maximum Release

When people have reached their retirement age, despite careful retirement planning, they may find that their income is not sufficient for their desired lifestyle or to cover plans for long term care. The prospect of costly long term care can be a worry for many retired people and few will have the level of income or savings to cover this eventuality. Equity release schemes can offer a potential solution for this dilemma and provide a lump sum, which can be used for any reason. However, many people are hesitant about consulting professional advice without knowing what is the maximum equity release sum available.

Find an Equity Release Calculator

If you have considered equity release, it can be worth investing the time to find an equity release calculator. This will help to determine the maximum release possible, which can allow you to explore whether this option would provide sufficient finance for your needs. The calculator will collate your details including your age, property value and current mortgage balance to provide an illustration of the schemes which could be best suited to your requirements.

Tailored Examples

A great number of calculators assist not only with what is the maximum equity release available, but can also provide tailored examples of the way in which you could choose to receive the funds. For people aged fifty-five and over, equity release provides a tax free sum. However, many schemes offer flexibility about whether you receive the funds in one lump sum or as flexible monthly payments. This can assist you in your retirement planning, and assist you in ensuring that you have not compromised your qualification for other forms of financial assistance that might be available to you. Since the equity release schemes are designed to run as a lifetime mortgage, this means that the loan balance only becomes due for repayment on death or if you move into long term car. At this time, the home is sold with the balance of loan being settled and any remaining funds are passed on to your beneficiaries.

Why Calculators Are Helpful

The equity release industry has flourished over the last few years, with new providers and household names now offering some great deals and schemes. However, it can be difficult to explore your available options and by calculating what is the maximum equity release, home owners can adequately make plans. These online tools can help to establish the limitations of equity release and provide figures to assist the decision making of whether or not to proceed. There are a number of online companies such as CompareEquityRelease.com, which offer different calculators showing the figures involved in conventional roll up plans and lifetime mortgages which are interest only. This enables a comparison to be made and helps in determining which schemes may be better suited to your needs.

Comparing equity release schemes can be challenging, but by finding a good online calculator, it can help you to make comparisons with just the click of a button. There are many independent companies, which offer calculators with access to the entire equity release market without any bias towards certain providers or products. This can help you to find the best possible deal and obtain real time figures to help you in your long term planning.

Help Taking the Next Step

Online tools such as equity release calculators can provide great help in taking the next step. Once you have determined what is the maximum equity release possible for your circumstances, you can then make an informed decision about whether you would like to proceed further. For many people, obtaining this figure can instantly provide information about whether equity release is feasible and optimal for their individual needs. This can save a great amount of time for those who would not qualify and enable those looking to apply, a clarification of the scope and possibilities offered.

Deciding to proceed with equity release can be a huge decision and the anonymity of online calculators allows home owners to explore their options without committing to an appointment with a broker. This can provide assurance that they are making the right decision and supply figures which can be used in discussions with their families. Equity release schemes can provide an excellent financial solution for a great number of retired people. However, it is a new financial commitment and it is important to understand what is the maximum equity release available for your circumstances in order to make informed choices. If you have considered equity release, it can be worth taking the time to find a good equity release calculator to determine your options and the size of release which could be available for you.

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Where to Compare Equity Release Pros and Cons Before Completing Any Calculations

Compare the Equity Release Pros and Cons Before Completing Any Calculations

Over a decade ago, releasing equity from your home was virtually unheard of. Today, equity release plans are flourishing, with more and more people choosing to turn to the equity in their homes for relative financial security during retirement.

Equity release is not suitable for everyone, but it does provide a flexible solution for many, and the growing popularity of equity release plans are proof of this. Many new and more flexible products have become available in recent times, and the fact is that the equity release sector has never looked more vibrant.

But the world of equity release schemes still remains confusing for many and it is difficult to negotiate your way around so many different plans; all with their own terms of lending and eligibility criteria. How then does one find the equity release plan that best suits their individual needs and circumstances? And how does one compare different equity release plans to find the best equity release deals?

The answer lies in speaking to a qualified equity release expert who can guide you through the different options and help you understand the equity release pros and cons of each alternative in the context of your individual needs. But firstly, a simple way to sift through the various options is to use an impartial equity release schemes calculator to find out the maximum amount you could raise through different equity release providers.

Equity release pros and cons

These equity release pros and cons are paramount to the decision-making process as they gauge one’s attitude to risk which your equity release adviser will use towards his recommendation. They will not only outline all that is good about equity release schemes, but advise the pitfalls of equity release schemes also. Knowing both sides of the story is essential moving forward as this could be classed as the biggest financial decision of your life, your first ever mortgage aside.

It is important to find a comparison site that offers objective and impartial advice, and has an up-to-date database of providers and plans. This way you can be sure that you are not losing out on something better and are getting the fairest picture of what could be available to you. Check whether they list all the equity release pros & cons for you to easily understand before even seeing or paying for equity release advice.

Independent advice companies like EquityRelease2go.com have pioneered the use of equity release calculators that can quickly work out the maximum release based on some simple facts about your case, including your age and property valuation. These companies continue to provide an impartial and up-to-date service to users who are looking to find the most suitable home equity release scheme.

Not all free equity release calculators are truly free and fair. Some calculators only show a fraction of the picture; while some others use personal information for unrequested marketing from paying partners. While many providers and even comparison sites use equity release schemes calculators as a ploy to extract information from enquirers, there are also companies that seek to provide genuinely unbiased information to customers based on results from all reputable equity release providers.

In summary, it’s vitally important to do your research before committing to anything, seek the equity release services of a reputable independent company who offer a nationwide advisory service such as Equity Release Supermarket whose testimonials & client feedback seem to justify this.

 

Will an Equity Release UK Calculator Work for People Aged Under 55?

Will an Equity Release UK Calculator Work for People Aged Under 55?

Equity release plans offer flexible solutions for a common problem that many pensioners in the UK face today. Changing social circumstances have led to problems that we see increasingly more often in society today. Longer life expectancy, rising costs of living, probability of needing self-funded long-term care and shrinking pension funds mean that many older people face a severe cash crunch during retirement. While there is a problem of cash flow, many pensioners are homeowners with a hefty untapped equity built into their property. Equity release offers a way to tap into this equity without selling the house or moving.

Today, the UK equity release sector has expanded and offers more flexible and innovative plans than before. The industry and indeed its main voice – The Equity Release Council has admitted that more providers, concepts and flexibility are required to maintain the momentum equity release & lifetime mortgages have now found. It is also much more secure now, being regulated by the Financial Conduct Authority and following strict SHIP (now under the guise of the Equity Release Council) standards of service. As the demand for equity release has grown, so have the tools designed for potential customers to understand and negotiate their way around the equity release sector.

Mechanics of the equity release calculator UK

One such tool that could be invaluable is the equity release calculator UK as it offers a simple, quick and convenient way to calculate the maximum amount of money that could be released from your property. An equity release UK calculator takes into account the information that you provide, including your age and current valuation of your property to calculate this amount based on its database of available lifetime mortgage plans.

As such, an equity release calculator UK can only work within the set eligibility criteria of equity release plans. Most equity release plans are only available to people 55 years or over. This means that the equity release calculator can only accept age values that are 55 or above. Many equity release calculators have a lower limit of 55 on their age menu, but some don’t. In any case, an equity release calculator will not work if one enters an age value of lower than 55 years or higher than 100 years! Most sites will default to a minimum age of 55 to ensure calculations are correct.

Could equity release be a possible to the under 55′s?

Whether one day the UK equity release mortgage market will accept lower ages than 55 is yet to be seen. The problem with accepting an age below 55 is the protection provided by the ‘no negative equity release guarantee’. This ensures that at the end of the day the beneficiaries will never end up owing any more than the sale price of the property upon death or moving into long-term care. The cost of this guarantee has to met and is paid for by the customer by way of a slight increase in the equity release interest rate. With no guarantee in place, then we would see lower interest rates in this sector.

However, upon meeting the standards laid down by the Equity Release Council, all equity release companies must facilitate this feature within their schemes; otherwise their scheme cannot meet the SHIP criteria. This is a mandatory requirement and has helped the industry build confidence back up within the equity release mortgage market.

Therefore, until these issues are addressed there are currently no equity release schemes for people under 55 years offered by any of the mainstream equity release providers that are certified by the Equity Release Council. Equity release UK is a good way to raise money to meet pressing demands, but releasing equity impacts your entire life savings and potential inheritance of your beneficiaries so it is always advisable to consider it very carefully – especially if you’re young and expect to live long.  P.S. Don’t we all!

 

What is an Equity Release Eligibility Calculator?

What is an Equity Release Eligibility Calculator?

As equity release has become more and more popular in recent times and the interest in equity release plans has increased, new tools are emerging to help users make sense of whether people meet the eligibility test to meet the wide variety of equity release plans available. Every bit of help is needed when trying to find the best equity release plan that could suit them and the first port of call would be to establish eligibility.

Equity release is a potentially life changing financial concept, so it is always best to seek advice from a qualified independent equity release adviser. But before you do that, let’s look at the many convenient tools that could help you negotiate your way around the world of equity release schemes.

There are two main types of equity release plans: lifetime mortgages and home reversion plans. Different plans have different eligibility criteria and terms of lending. An equity release eligibility calculator is an application that, based on the information you provide, can quickly work out whether you are eligible to apply for a certain equity release plan.

For instance, a lifetime mortgage eligibility calculator can help you understand if you are eligible to apply for a lifetime mortgage, and if so, the maximum amount you could potentially release from your home. Eligibility for a lifetime mortgage is based on the applicant’s age and property value. The longer the term of the loan, the more the value would need to be. The shorter the expected term, the lower the value of the property can be. Therefore, in general, the younger the applicant, the higher the property value will need to be.

Who offers an equity release eligibility calculator?

Let’s look at the Aviva lifetime mortgage as an example. The minimum age to apply for this is 55 years, and the minimum property valuation is £75,000. Aviva’s lifetime mortgage eligibility calculator requires the user to enter their age, the value of the property, whether it is a single or joint application, certain details about the property, and whether you want to set any percentage of the equity as an inheritance.

Based on these details the eligibility calculator can tell you not only if you are eligible to apply for this lifetime mortgage but it also works as an equity release calculator and can tell you the maximum amount you could release through a lifetime mortgage. An equity release eligibility calculator is therefore simply a quick and convenient way to find out if you qualify to apply for a certain equity release scheme, and if so, how much you could potentially release.

Another equity release eligibility calculator is offered by another of the prominent equity release companies – Hodge Lifetime. They provide an equity release eligibility calculation to provide information on whether they could qualify for any of the Hodge Lifetime flexible lifetime mortgage products. Additionally, the calculator will provide not only the amount one can borrow, but also what the future balance is likely to be. This is ideal if you wish to see the effect the compounding yearly interest will have on your inheritance when the house is eventually sold.

For a free check to establish eligibility for any of the current range of equity release schemes from the whole of the market, call Freephone 0800 471 4796.

 

Will a Free Equity Release Calculator be Truly Free?

Will a Free Equity Release Calculator be Truly Free?

Equity release schemes have gained much popularity in recent years, and this demand has fuelled the arrival of several new flexible and secure schemes on the market. This surge in demand and popularity can be illustrated by a simple fact – until a few years ago, clients would have had to visit the equity release provider just to find out the maximum amount they could release.

Then, leading comparison websites like Equity Release Supermarket started offering equity release calculators on their website that allows users to quickly find out the lifetime mortgage and enhanced lifetime mortgage maximum availability; and now more websites offer this nifty little application to the potential customers.

What’s the point?

The point of an equity release calculator is to have a simple way for users to get a rough idea of the maximum amount they can release with a particular provider, or through a particular equity release specialist. By having a free and transparent system, not only do users get a fair idea, but providers and specialists also gain from being able to show users how much money they could potentially raise by doing business with them. So providing a truly free, fair and honest service by way of an equity release calculator benefits all parties.

The equity release calculator is always marketed as a free, impartial and very convenient tool. As such, one simply needs to enter some basic information and the calculator shows you the maximums you could release. But while many reputable companies do provide a transparent and objective service, are all equity release calculators equally transparent? For one, what do companies use your personal data for?

The fact is that some lenders and equity release providers misuse the equity release calculator and use it to gain valuable personal data from unsuspecting users. Your personal details are then used for unsolicited marketing and advertising! While this is a commonly used marketing strategy, it is imperative that these motives be made clear to the public, and not many companies do this.

Thus, equity release calculators are potentially a very convenient, objective and free way to get an approximate idea of how equity release could work for you; but some companies misuse this application for data mining and luring potential customers into their marketing ploy. However, there are reputable companies like Lifetime Mortgages.org.uk that do offer a fair, objective and truly free equity release calculator service.

Multi-functional calculators

However, Compare Equity Release.com also offer two calculators, but uniquely provide their customers with 3 equity release solutions in their answers. Firstly, they offer the standard maximum equity release based on a healthy person and at the same time offer the maximum enhanced lifetime mortgage maximum release aswell. This helps people with adverse health conditions to see the ‘benefit’ in equity release terms that impaired health can offer them by way of an extra tax-free lump sum.

Lastly, Compare Equity Release.com will also offer the usage of their interest only lifetime mortgage calculator. So if you are over age 55 and looking to find out how much an interest only retirement mortgage from the likes of Stonehaven, more2life and now Hodge Retirement Mortgage Plan can offer then visit their website at www.compareequityrelease.com or call them on 0800 678 5169.

 

What is the Formula for a Home Reversion Plan Calculator?

What is the Formula for a Home Reversion Plan Calculation?

Equity release schemes have seen a massive surge in popularity in recent years with figures continuing to rise in 2013. Year to date figures for October shows there has been over £800 million of new equity release funds released, and is set to reach an all-time high of possibly £1 billion by year-end.

This will be a landmark for the equity release industry after years of care in building its reputation through regulation, financial advice and more innovation in product design from the equity release companies themselves. The main growth area in the types of equity release schemes available has been in the field of lifetime mortgage schemes market. Nevertheless, it is the home reversion plans the London equity release mortgage market has to thank. For this is how back in the 1960’s when the former property equity release schemes were invented.

Why the decline in home reversion sales?

Home reversion schemes in comparison to lifetime mortgages have not seen much change in design or structure since their inception. In fact less than 1% of all equity release schemes written in Q3 of 2013 were a home reversion plan! So what is the reason for their significant decline? One word – Flexibility.

Within the equity release sector, there have been products such as home reversion plans that have lost out to other more flexible and secure options that are now becoming available. Flexible terms of lending such as new interest only lifetime mortgages and the enhanced lifetime mortgage UK are now more popular & freely available. Where a release of equity is necessary and advice is required more than 9 times out of 10 advisers will favour lifetime mortgages & for this reason they have effectively made home reversion plans near obsolete.

After all, demand creates supply, and there seems to be little demand for home reversion schemes on the whole. This is perhaps the reason why several companies that used to have a home reversion calculator have now withdrawn the application from their website.

Where can I find a home reversion calculator?

Old home reversion companies of the past had tools such as a home reversion plan calculator which could help people over the age of 65 assess the maximum they could borrow. Two such companies were Retirement Plus of which they provided the data for companies like Equity Release Supermarket to use on their own website.

Alas when Retirement Plus withdrew their hybrid home reversion/lifetime mortgage plan these calculators were pulled. Unfortunately this left a void in the market. More recently Bridgewater have provided a home reversion calculator for advisers to use, but is also accessible to the general public to use with the right-click!

There are some specific reasons for this decline in popularity. The first reason probably is that home reversion involves selling a part of your home, and not many people are comfortable with that thought. The main advantage of home reversion was that it involved no repayment over the loan term; however, with the arrival of flexible new interest only lifetime mortgages home reversion no longer offers something unique.

Advantages and disadvantages of home reversion plans UK

Another reason is perhaps that home reversion involves this selling a part of house at a highly discounted price, so that you not only lose out on the market value when you start the plan, but also do not benefit from any property price rise on that percentage of the equity when the house is finally sold.

Another significant drawback of home reversion plans is that in case you die early and the plan ends, you potentially lose a valuable chunk of your property in exchange for a highly subsidised price. This can be a big risk for your beneficiaries. But with certain new lifetime mortgages, you can get guaranteed inheritance protection in case of early closure, which is a significant improvement.

Home reversion plans are still very much available however, so there are clearly some advantages to these schemes and they suit some clients. They do offer a large lump sum release, there are no monthly repayments to be made, and by selling only a small portion of the home, you can still protect any inheritance you may wish to leave behind. However, enhanced lifetime mortgages available today can surpass the release allowed by home reversion schemes, and still allow you to retain full ownership of your home.

Home reversion summarised

Companies such as Retirement Plus, Aviva, Home and Capital, and Partnership did offer enhanced home reversion plans, which seem to have now been withdrawn. As stated historically, several reversion companies had home reversion calculators on their websites, but with the decline in demand for these schemes and the availability of new more flexible lifetime mortgages, it is difficult to find a home reversion plan calculator today.

However, the home reversion plan in the UK is not dead & buried and still must have a part to play in the overall equity release advice service offered by any qualified adviser.

You can calculator standard results on the best home reversion deals by visiting specialist equity release broker websites such as – www.homereversion.org

 

How Can the Proceeds from Equity Release Schemes Be Spent?

How Can the Proceeds from Equity Release Schemes Be Spent?

There are two main reasons why equity has caught on and become increasingly popular in the past few years. Firstly, it allows homeowners to access the cash value of their asset without having to sell it or move out, and secondly, there are no constraints placed by equity release providers on how the money can be spent.

Different people have different reasons for wanting to release equity from their home. Most equity release schemes allow for release either options in the form of a single lump sum or as regular withdrawals from a drawdown facility which can then be utilised as an income. This makes it a flexible option for people with a variety of needs, whether it is someone who needs cash for funding a holiday or someone who needs a supplementary income during retirement.

Having said that, it is important to note that there are some things outlined in the equity release plan contract that one cannot do, for instance make major alterations to the property that could have a significant impact on its value etc. Also, should anyone else move into the property, then the lender needs informing. The lender with then require an equity release waiver form must be signed by the new occupant so as to waive their rights behind the lenders, in case the main party died in the meantime.

In such situations it is always advisable to check with the lender beforehand to gain acceptance of the plans, otherwise should the lender find out any other way you could be in breach of the equity release terms and conditions.

Check the alternatives

Equity release is a flexible tool that allows people to use the released money to meet their individual goals. The key factor in deciding whether one needs to release equity from their property to meet these goals is whether there are other options that could help you achieve the same aims. Therefore, it is the duty of the lifetime mortgage adviser to consider all the alternative solutions that may exist before proceeding with any recommendation for an equity release scheme.

Once these alternatives have been eliminated it is only then that your lifetime mortgage financial adviser can then help you understand if equity release is the best way for you to meet your needs and attain your goals. Discussing your goals with your adviser can also help you understand if there could be another better way to achieve the same thing without incurring the same risks.

For instance, has your adviser consider ALL of the following: –

  • Would you be better off downsizing to a smaller property instead of releasing equity?
  • Could you use any existing savings or investments before taking any release of equity?
  • Be eligible for any means tested benefits that could help you?
  • Ask your children or relatives for financial assistance?
  • If home improvements are planned, are there any grants available that could cover the costs?
  • Consider other types of finance such as personal loans, credit cards, hire purchase, interest only mortgage?
  • Take in a lodger which could provide a source of extra income?
  • Reduce one’s expenses to provide additional disposable income?

A financial adviser could help you explore all the possible options and find the optimum solution.

For those who find that equity release is the best option for them, there are many ways in which the released equity can be used and there are no constraints on how the money can be spent. As mentioned above, everyone has their individual reasons for releasing equity, but some popular uses for released equity include a cash gift to the kids or grandchildren, funding a holiday, home improvement works, a new car, repaying an existing mortgage or debt consolidation or even buying a second property such as a holiday home.

Equity release schemes provide the freedom to carry out your long-term desires, something that wouldn’t have otherwise have been possible. However, there is always a word of caution which is that equity release schemes are not suitable for everyone & do come with a health warning – it will reduce your inheritance!

 

How Could An Equity Release Calculation Help My Retirement Plans?

An Equity Release Calculation Could Help Your Retirement Plans

Financial planning during retirement is becoming increasingly important. With rising living costs, growing costs of care, and a shrinking public expenditure budget, it is only wise to use your financial assets optimally to provide for you during retirement. It is no surprise then that equity release plans have become so popular among older homeowners in recent times.

Equity release plans offer a way to tap into the equity tied up into a home in the form of a cash lump sum or monthly cash payments and use it towards anything you wish. The money is repaid only when the property is sold, which is usually upon death or when you move into permanent long-term care. There are no restrictions on what the money can be used for, and it allows a way to use the cash from your home without the need to sell and move out. Equity release therefore offers a way to optimise your property value without any restrictions on what the money can be used for.

Reasons for releasing equity

Different people may use the release of equity for different purposes. For instance, someone may need a cash lump sum for a holiday, home repairs, or for a cash gift for grandchildren. Cash flow can often be a problem during retirement, and some people may need a regular income to supplement their retirement income in order to maintain a comfortable lifestyle.

Just as there are various reasons for people to want to access the equity tied into their home, there are different equity release plans available on the market to suit different client’s retirement needs. Obtaining an equity release calculation can help one not only to work out the maximum borrowing through any given equity release plan, but also to understand how the money can be borrowed. For instance, whether it can be borrowed as a single lump sum, as regular monthly payments, or as and when required, through a drawdown lifetime mortgage scheme.

Facilities for monthly income?

Most people use an equity release calculation to work out the maximum amount they could borrow, and to understand how this money can be used optimally to get the best returns. While some people may best benefit by borrowing in the form of monthly installments, unfortunately this is not an available option with any of the current drop of equity release companies. The only previous lifetime mortgage provider that offered a monthly income option was from Northern Rock & we all know about their demise!

Therefore, if a regular income is required borrowers will need to consider other options. This may come in the form of the more flexible lifetime mortgage schemes and may choose to borrow through a drawdown lifetime mortgage scheme. Some may also choose to borrow the maximum amount and use it to purchase an annuity or other investment product, although using equity release to purchase a market linked investment product could be potentially risky due to the uncertain returns available in the markets. In fact, other than to create an emergency fund, equity release schemes should never be used for investment purposes and is something a qualified equity release adviser should never recommend.

A qualified equity release adviser can help you understand how an equity release calculation can be performed and the money released best used. The first step to understand how releasing equity could potentially help you during your retirement would be to use an equity release calculator to work out how much money you could release through different equity release plans, and how it could be used optimally to plan for your retirement. Once the parameters have been established & monetary figures confirmed the application process can begin in order to convert your wishes into reality & retirement plans fulfilled.

 

What About Life Before the Equity Release Calculator?

What about life before the Equity Release Calculator?

The growing popularity of equity release schemes has driven a sea of change in the world of retirement mortgages. For one, increases in demand from customers has led to more flexible, innovative and secure equity release solutions being developed all the time. As more and more players enter the market, there has also been an increase in the number of comparison and information websites whom themselves are innovating to provide new tools to help in conducting equity release research.

One of these latest tools is the equity release calculator which was once a novel tool offered only by pioneering websites like Equity Release Supermarket. Today however, the equity release calculator has become a common sight and very common across the marketplace.

What is an equity release calculator?

An equity release calculator is a highly useful application as it allows users to get a fairly good idea of how much you can borrow from the whole of the equity release market. Useful as it is, though, it is a fairly recent development. Prior to the availability of this simple tool, the only way for potential clients to find out the maximum release available on any particular plan would be to contact the equity release provider either by phone, or in person!

This seemed like an awfully tedious way to find out something that could be calculated rather quickly based on a few simple facts. Companies like Equity Release Supermarket therefore invested in a simple application that, once users entered certain basic facts such as age and property value, could calculate maximum borrowing based on a simple algorithm used by equity release companies to calculate borrowing. This application provided the client with the equity release calculation upon which they could base their spending plans.

Today, numerous websites have an equity release calculator. While this is a good thing that enables users to quickly find out maximum borrowing, equity release calculators are now also being used as a form of marketing or advertising to attract potential customers by only promoting certain equity release plans over others. The point of an equity release calculator is to provide a functional and entirely unbiased tool for users to work out the maximum average amount they could release. And the role of equity release comparison websites is to provide impartial information and objective advice about the different options available.

Using an equity release calculator as a marketing ploy seems not only to compromise the ethics behind providing impartial advice and information on websites, but also undermines the entire point of offering such a calculation application to users.

Nevertheless, the fact is that the equity release calculator offered by reputable comparison sites has provided a hassle free and quick way for users to calculate maximum borrowing from an equity release plan. This can form part of the initial equity release research into lifetime mortgage schemes and act as an in-road into preliminary discussions with your lifetime mortgage adviser.

For further information on how to calculate the maximum equity release lump sum call the Equity Release Supermarket lifetime mortgage department on Freephone 0800 678 5159.