Tag Archives: Equity Release Solutions

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 028 3104.

 

Where Can I Find Companies That Provide Equity Release Solutions?

Which Companies Can Provide Equity Release Solutions?

Equity release has seen a massive surge in popularity in the past few years. This growing demand has fuelled the sector and today we have more providers, with a wider portfolio of more flexible equity release plans than ever before. While equity release is not suitable for everyone, the variety of equity release plans means that it is certainly likely to be a suitable solution for a lot more people today than ever before.

Recent surveys have shown that a large number of pensioners are homeowners with a size-able amount of equity tied up in their homes are suffering from a credit crunch and are unable to fund their day-to-day expenditures or have no money for that big one-off expense. In other words, there are numerous people around the UK, who are property rich, but cash poor.

Such equity release solutions allow them a way to release some of the equity in their home in the form of conveniently usable cash. This money can be released either as a lump sum or in the form of irregular installments. The uniquely attractive feature of equity release plans is that they allow you to tap into the value in your home without the need to move out or sell the property. Irrespective of what type of equity release you choose, you can continue to live in your home until you die or move into long-term care.

Types of equity release solutions

There are two main types of equity release plans – home reversion schemes and lifetime mortgages. Home reversion involves selling a percentage of the house to the lender in exchange for the money. At the moment companies offering home reversion plans are Newlife Mortgages, Bridgewater Flexible Release Plan and Hodge’s Shared Growth option.

Lifetime mortgages offer the other type of equity release solutions – wherein instead of selling a part of the house, the lender sets up a secured 1st legal charge on the property. There are also interest only lifetime mortgages where you can repay the interest monthly, thus maintaining a level balance on the loan. Such companies offering the interest only lifetime mortgage solution is Stonehaven with its range of Interest Select plans or more2life’s interest choice plan.

Latest product development

A recent innovation in this domain of interest repayment is from Hodge Lifetime with its flexible repayment lifetime mortgage. Although the repayments of interest cannot be on a monthly basis, Hodge Lifetime do allow upto 10% of the original amount borrowed to be repaid each year without penalty. Becoming a serious player now in the equity release marketplace, Hodge Lifetime have set down the gauntlet to other companies lacking in ingenuity and ideas with their current and future plans.

The most common form of equity release are the roll-up lifetime mortgages where the interest is added to the principle amount and compounded over time. This means that the debt effectively rises yearly for the rest of your life, until you either die or move into long-term care. Hence, before entering into one of these contracts you should always discuss your intentions with your family first & then arrange an Equity Release Adviser.

There are other types of equity release schemes which do include the drawdown lifetime mortgage such as Aviva’s Lifestyle Flexible Option, designed for those who want to have the option of borrowing more in the future without any obligations. For those who want the biggest lump sum, enhanced mortgages such as more2life’s Enhanced Lifetime Mortgage may be suitable, providing they meet the health & lifestyle questionnaire.

These are some examples of equity release solutions designed to suit different needs, and some companies that offer these products. There are, of course, many more providers within each sector. The best way to find a suitable deal is to compare different equity release plans, and seek independent advice from a qualified equity release adviser.