One of the most important and most basic questions that customers ask when considering equity release as a potential solution is – how much will I be able to release?
This is the question that determines whether or not equity release is the right option for them. Until a few years ago, those making an equity release enquiry who wanted an answer to that question had to make an appointment with various providers in order to get an answer. Today, thanks to the development of the online equity release calculator, getting an answer to this essential question has become a matter of minutes.
An equity release calculator is essentially an application that can calculate the average maximum amount you could release based on the information you enter – this includes your age, and the current property valuation of your home. The calculator then uses this information and searches through its database of different plans to come up with the maximum that you could potentially release for your given age and property valuation.
For an equity release calculator to work correctly, it is important to provide it with the most accurate information, as this is the only way you can get an accurate answer. So let’s look at the best way to use an equity release calculator online tool.
In the case of most equity release plans, how much you can release depends on two factors – your age, or in the case of joint applicants, the age of the youngest applicant, and the current valuation of your property. Your age determines the expected term of the mortgage, and your property value determines the equity in your home. These two variables are used by the lender to calculate how much they can afford to lend you.
While filling in the equity release calculator form, it is essential to fill in information carefully and accurately. In case of enhanced lmortgages, there is another pertinent factor – and that is your health and lifestyle. Your health and your lifestyle determine any potential risks to your life and enable the lender to calculate the expected term of the loan. This allows the lender to work out how much enhanced equity you can release.
Enhanced equity release calculators entail filling in a health and lifestyle questionnaire consisting of fairly simple questions about your lifestyle choices and habits, and any existing illnesses and chronic conditions you may have. Again, it is imperative to be as accurate as possible while filling in this form as this will help you get the most accurate answer.