Tag Archives: Equity Release Expert

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.

Where Can I Find the Prudential Equity Release Calculator for Existing Plan Holders?

Is There a Prudential Equity Release Calculator for Existing Plan Holders?

Prudential is no longer offering lifetime mortgages to new customers. However, Prudential had one of the most successful lifetime mortgage schemes at the time, so there are currently plenty of existing plan holders who still have a Prudential lifetime mortgage plan.

So, can existing customers release additional equity from their property? And if so, is there a Prudential equity release calculator that can help existing plan holders understand how much they could release?

The short answer is that there isn’t a Prudential equity release calculator for existing customers. However, there is way for customers to find out if they can release additional equity from their property and also find out how much, without the need for an equity release calculator! By following some simple steps, it is possible for existing Prudential equity release customers to have additional funds in their bank in as little as two weeks.

Prudential offered their lifetime mortgage in two forms – a fixed single lump sum lifetime mortgage and a more flexible drawdown lifetime mortgage which allowed for more than one equity release lump sum. For those who have a single lump sum mortgage from Prudential, releasing additional funds on the same mortgage may not be possible.

For those who have a drawdown lifetime mortgage with Prudential, there is no need for an equity release calculator to find out how much they can release again. If they have sufficient equity left in the property they can easily release it by making a drawdown request. But first they will need to find out how much they can release.

Check your Prudential annual statement

To do this, it is necessary to check the last annual account statement from Prudential. The statement will outline how much equity is left in the property. If you’re unsure about whether you have a single lump sum or a drawdown mortgage, your statement will also clarify this or contact your local equity release adviser.

The figure you are looking for is the remaining funds left in your drawdown facility. These are unused funds that were set aside from inception of the Prudential lifetime mortgage plan. The basic calculation for remaining fund availability is:-

Total reserve facility from outset – capital withdrawn to date = cash available now

Once you have made sure you can release more funds, you can simply make a request to do so directly from the provider or with the help of an equity release adviser. The drawdown request can be made by filling in a form online, or over the phone by calling the provider.

An equity release calculator tells users if they are eligible to release more equity and how much they can release. For existing customers for the Prudential lifetime mortgage, this is exactly what your annual statement will tell you. You can consult an equity release expert or the provider if you are unsure about the type of mortgage, or need further advice about additional release.

Consider switching plans if unsuccessful

Should you be unsuccessful in your goal to raise further funds with a Prudential equity release, then you will need to consider the alternatives. It will have been over 4 years ago that the last Prudential lifetime mortgage scheme also known as the Property Value Release Plan was written.

If Prudential’s equity release calculation ‘says no’ and you do need extra cash funds then consider an equity release remortgage and analyse whether it would be worth swapping a lifetime mortgage scheme. With interest rates as low as they have ever been, it may not be a bad idea anyway!

However, before you even consider switching equity release schemes, remember the Prudential early repayment charges were linked to the Bank of England base rate which currently is only 0.5%. The latter Prudential Property Release Plans were taken when the base rate was still at 0.5% so they could effectively remortgage without any early repayment charges (ERC’s). However, early plans could have been taken out when the base rate was 4-5%, thus meaning a penalty would arise if the scheme was transferred.

Summary

It would be prudent to seek the advice of equity release remortgage professionals on this basis, as the ERC’s would need building into the switch plans calculation. However, there are analysis tools available on the internet which can do a switch plans analysis for you. This will check your break-even point & highlight the whether it maybe worthwhile to remortgage to a new equity release lender or not, should Prudential not allow additional borrowing.

For a free analysis contact Compare Equity Release on 0800 678 5169 or visit their site by clicking here for their unique switch plans tool page.

Do Your Maths and Equity Release Schemes Will Add Up!

Equity release schemes have become more and more popular in the past few years. But it is also a fact that equity release schemes still ring alarm bells in the minds of many. The main concern that people have with equity release is that it can erode your estate and leave little equity for your beneficiaries.

Another alarming scenario is where the loan could become bigger than the sale value of the property resulting in ‘negative equity’, where you could potentially owe money to the equity release provider. While these were legitimate worries until some years ago, equity release schemes today involve far fewer risks.

Equity release and regulation

All equity release schemes come with a no negative equity guarantee as schemes these days are incorporated into the Equity Release Council rules & regulations check list. This protects consumers from ever owing more than the value of their house, even if the loan did surpass the current valuation. Basically, the lender will waive any excess, with the worse case scenario being no equity for the children.

Equity release today can be used as a flexible tool to optimise your financial assets to support you during retirement. The fact is that equity release offers a way for older homeowners to access the value that has built into their home, without having to sell their property and move out. Rising costs of living, rising costs of care and ever shrinking pension funds are making it difficult for many pensioners to support their lifestyle during old age.

What can equity release be spent on?

Retirement is seen as the golden period of life, when one should be free to enjoy the fruits of their lifelong labour. Whether it is for a one-off expense such as a holiday, or a home extension, a cash gift to children or grandchildren, or a regular income supplement, many people are turning to equity release as a way to access the cash in their home without having to sell and downsize.

So, are there risks involved with equity release schemes? As with any financial product, it is important to understand the full implications of releasing equity from your home. By releasing cash from the value of the property, you essentially devalue it to a certain extent, and this is bound to have implications for your beneficiaries. However, unlike equity release schemes of the yore, no matter how large your debt, your beneficiaries will never owe anything personally to the equity release lender.

There are various equity release plans designed to suit people in varying circumstances and with different needs. It is important to understand your own needs and priorities and use your financial acumen to find out which type of equity release product suits you best. An equity release calculator can help you work out the numbers with respect to different equity release plans, and consulting an equity release expert can help you understand how different plans can work for you.

The maths can add up to the solution you are looking for, but as ever it is the details you input in the first place the determine the end result. Caveat emptor as they say!