Tag Archives: Lifetime Mortgage

Compare the Best Equity Release Calculators to Find the Road to Financial Freedom

You want to be finally set for your retirement years. Most people do. Sometimes the best laid plans do not work out. For example you might have a retirement fund, but it got hit severely with stock market issues. You may have needed to use some funds to help out your children or grandchildren. The point is you are here because you want to have financial freedom and hope that the best equity release calculators can help you. Yet, you might be hesitant to even use the calculators online when you see what they ask for. Find out how to differentiate the best calculators from those that are data mining.

Does the Website Look Professional?
Some websites look more professional than others even when dealing with equity release calculators. There are several ways you can tell whether the website is actually a decent information site and worthy of your attention. The first thing you want to do is look at the ‘About Us’ page. If the page offers an exact date for when the website was launched, plus a decent history of the company or people running the site you can trust they are professional. Take a look at their blog, news, or article area to see what types of information they provide to you. Is the writing on the site professional or filled with grammatical errors one after another? Do you learn something from the content of the site or is it just marketing? A professional site will have more than looks it will have depth in all areas as well as provide you the data you want to know from the calculator.

Are Equity Release Websites Just Acquiring Your Data?
A part of determine whether a website is worthy of your information for calculating potential equity release amounts is the data and information you are asked for. For example, say you pull up a website and all it has on the home page is the calculator asking for your name, phone, email, address, sex, age, and property value. There is also a field to fill out with contact information to log-in or sign-up, but there is no information given to you about how the calculator works or what it will provide. This type of site is just asking for your data and not giving you information in return. An equity release calculator should work both ways – provide the calculation you require to establish the maximum release of equity and for the equity release broker to have a chance to discuss the potential of doing your business with one of their equity release advisers.

Are Mandatory Fields Relevant to the Information you Want?
You want certain information. In fact you want to know if you can afford to take out equity from your home, whether it is in the form of a lifetime mortgage or home reversion. You ultimately want to get results from the data you input. This goes along with separating data mining sites out from the information sites. If the mandatory fields as just about your name, email, and telephone and not about your age, health, and property value the site is just trying to get your information. Another consideration is if you fill out the mandatory information with fake data do you still get results from the calculator. This is a great way to test the site.

Some sites are extremely smart and know when you have not entered a proper name, email, or telephone number. For instance if you put xxxxxx xxxxx for your first and last name plus xxxxx@xxxx.com and 010000000 for the telephone number and you receive results they are not data mining, but trying to give accurate estimates of your lifetime mortgage options. If the site says you have not provided correct data in the mandatory fields and withhold the calculation result it is a data mining site.

Is the Website just Marketing Equity Releases?
When a website is just trying to market to you it means they are data mining. They are trying to get your information so they can market to you and what your interests are rather than supply you with relevant accurate details. Always check their privacy policy and T&C’s to see if this is genuinely allowed.

A good website is going to work for your and the other side. Each party will provide information that is helpful to the other person. For the website they get marketing details and learn what you are most interested in as a means of sending you information based on your needs. You get the data results you wanted to see, in other words the calculation of loan to value the company or companies are willing to provide you with for equity. Since you made an enquiry the website can then make their enquiry and help answer any questions you might have about the results.

The Results
The equity release results you receive from the equity release calculator can help you find the solution you are looking for with regards to your financial needs. You know what you hope to gain from an equity release mortgage or at least you have a basic idea. You want enough funds to live your life comfortably. You know whether there are health issues that may require you to sell your home and seek assisted living. You understand what your current retirement funding offers and if you wish to provide your children and grandchildren with their inheritance while you are still alive.

The results can tell you what is possible. It will not tell you how you can use it or give you a “set in stone” loan to value result. This is an important distinction when talking about calculators. You cannot believe that the results you receive are wholly accurate and will not change. A lot of factors can affect the results you received from the calculator. You use the results to your advantage & gain a sense of perspective as to how much you can look forward to achieving in your retirement.

For instance, if you ball-parked the property value based on current home sales found on Zoopla you could be out by £50,000 either over or under valuing your property. This means the estimate of available funds will also be over or under the actual amount a company can truly provide you. This is where finding a professional website with helpful advisers can come in handy, particularly when you are ready to talk numbers and potential lifetime mortgages.

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What Results does an Online Equity Release Calculator Show?

An online equity release calculator is pretty smart now that we have a good number of technology and website designers willing to provide you with as much information as you can get all from one site. You can get up to four results using an equity release calculator. Some websites may offer only one; another might offer lifetime mortgage standards versus home reversion; while the last one you visit offers up to three. The results you may receive will be explained, but first be wary.

Most websites are trying to get your information. They want to look at the results for marketing purposes, as well as to get you on the phone or via email to sell you their product, versus one of the other company’s on the market. You will want to be careful who you give your information to. Make certain you trust the website and avoid any that say they will show you the results in the next step. In reality, all the calculator needs to know is your age and your home value.

Home Reversion Determiners
Home reversion is a sale of a home you own. It has to be your primary home or at least the home you use as your main residence. You must be 65 years of age. You cannot have a mortgage outstanding on the home or some companies will allow you to use the home reversion funds you receive to pay it off.

The idea is that you live rent free under a lifetime tenancy agreement in your home until death. If you need to leave the home, you will sell the remaining part and you cannot move back in. The home is sold in full to the buyer, a home reversion company. This company offers you a percentage for the home based on the full value of the home, less the percentage they consider as their investment. You never receive full value for the home whether you sell in part or full. The idea is that the money you are given, less the full value, is the investment the company gains from you plus any appreciation that occurs while you are living in the home. If the house is not sold in full and it appreciates you benefit too.

So the older you are, the higher the percentage you gain in funds on the premise that the investment will not be outstanding for as long. There is no interest involved.

Lifetime Mortgage Determiners
For an online equity release calculator offering lifetime mortgage results, there are differences from a home reversion calculator including the fact that you are now dealing with interest. It is not a percentage of the home you decide to sell, but a percentage you can gain in return for making a capital lump sum payment, plus interest at your death or when you decide to sell and move out of the house.

If you are in perfect health, you will want to use the standard ER model as this shows you what a healthy adult, at your age, with your home value, can get as a maximum capital sum.

A person that is in ill health is expected to die earlier than most, which means they will pay back the loan quicker and thus the investment is not outstanding for as long. With interest accrual to factor in and a company wanting to make as much as possible, they are willing to increase the lump sum awarded due to your lower life expectancy.

The third type of result is with an interest only mortgage. This is provided to borrowers who have money to make a monthly payment. The payment is only the interest accruing in a month based on an APR. It keeps the capital lump sum the same throughout the loan. Again, age and home value factor in. With an interest only loan there is concern over the individual being able to keep paying on the mortgage, so usually the amount is lower. It leaves the option of converting to a standard lump sum product open for the future.

Do Your Research and Get Armed with Information
There is nothing better than being armed with information when you go to speak with an independent broker regarding possible products and actual maximum amounts available to you. Always remember the online equity release calculator provides an estimate to use as a guide. It simply states whether it is possible to get a loan at affordable terms for your retirement, versus something that is not feasible.

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Which Equity Release Company offers Maximum Equity Release from your Home?

Retirement is a difficult time in the current economic situation due to inflation, the ending of the recession, and lower wages. While the economy is repairing itself, many families in retirement or about to retire do not have enough savings to last until death. There is a solution in retirement products including equity release. To gain the maximum equity release from your home there are a few factors that will matter: property value and age of homeowners.

Examining the Factors
Your property’s value determines what you have available in equity. Equity is usually defined as the total value of your home minus any existing loans. Therefore, if you have no loan and the value is £300,000, you have £300,000 in equity.

No mortgage company is going to offer 100% loan to value. They will offer a percentage of the loan to value based on the type of equity release you choose. A standard equity loan has monthly repayments with interest. A lifetime mortgage equity release scheme holds the repayment until the end, including interest you may owe. The interest compounds onto the back of the loan, so in 10 to 12 years, the initial lump sum you received for the loan could double. If you take out £100,000 then it could become £200,000 in 10 or 12 years.

The next part of this retirement product is age. A qualification of most companies offering lifetime mortgages requires any borrower to be 55 years of age at least. There are a few companies requiring an age of 65. In the case of dual ownership, with a spouse or civil partner, the lender will look at the age of the youngest borrower to determine the amount of the loan and if you qualify at all. The idea is the youngest borrower will live longer and will compound interest longer; therefore, the total loan amount needs to reflect the time the loan is outstanding and gaining interest.

Specialist Equity Release Companies
There are companies which target this niche market as a way to provide the maximum equity release to you. Aviva Lump Sum Max, Pure Retirement, and Just Retirement are three such companies offering the maximum amount possible. Aviva’s Lump Sum Max is currently at 5.63% with a fixed interest rate. Pure Retirement offers a product at a fixed base rate of 6.55%. Just Retirement is higher at a fixed interest rate of 6.75%. Aviva and Pure Retirement are two companies offering an incentive for retirees to sign up.

It is up to you, the borrower, to determine which product is best for you and your family. Each company has specific details, which tend to target consumers specifically. One company may not be best for all ages i.e. they may be better for older individuals, versus those just entering retirement.

Independent Advice and Due Diligence
Given the different products on the market, it is up to you to conduct due diligence by finding an independent adviser who can help you research the market and provide you with an equity calculator UK. By using a calculator it is possible to determine the maximum amount available to you. Remember, this is just to give you an idea of potential options. The company still has a say in whether they lend the maximum amount based on your qualifications. An equity release broker is ultimately going to determine the maximum release they will provide.

Also, there is a potential that your ill health could help you receive a larger than typical maximum. If you suffer from an illness, there is a product that provides an increase over the standard terms allowable to most retirees. Companies use theory of mortality tables to determine if someone will potentially die earlier than the average person, thus some of the newer schemes take this into account and will revise the maximum they are willing to offer you.

Aviva, Just Retirement, More2Life and Partnership provide variable levels of enhancement to offer you the maximum equity release possible if you have ill health. By checking with an independent adviser you can conduct research, examine their information, and determine what might be best for you and your family.

Even if you do not have ill health it is possible to get the maximum allowable for your age in a standard product. There are disadvantages with this product. Be aware of these negatives before signing a contract. It is another area your independent adviser can help you with. As always, when looking at financial products, start out with research, calculating possibilities, and then find a product that suits you rather than the lender.

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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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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.