Tag Archives: Online Equity Release Calculator

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.

How to Calculate the Maximum Equity Release

Equity release plans can offer a flexible way to optimise your financial assets. With new, more secure equity release plans available today, it is possible to manage the amount of equity in your home exactly as you intend to; while also protecting your inheritance. But after all is said and done, equity release ultimately works by devaluing your main asset – your home.

While equity release plans do provide a valuable solution to many, it is not suitable for everyone. It can involve selling a portion of your home in the case of home reversion, and having a life-long mortgage secured on your property in case of lifetime mortgages, so there are many implications to be aware of that on the face of it may not be obvious. An equity release plan is therefore something that has a major effect, not only on your life but ultimately also for your beneficiaries. As such, it is important to be fully sure that it is the best possible way to help you achieve your goals.

Just enough for your needs

The starting point is to assess where you stand in relation to the amount you actually require. Therefore, a good way to do this is to calculate the maximum equity release that you can take in the context of your individual needs and circumstances. It would therefore be prudent to discuss what you actually need the extra cash for by itemising your expenditures. Not only this but are these expenditures ALL required during the initial spending phase? Some proposals may have longer term goals which can be set aside for now, others more immediate. These later life expenditures can be incorporated into the longer term goals of your plans.

However, by at least knowing the maximum release possible, you can then either build your spending plans to fit, or curb your expenditures to fit in with this budget provided by the online equity release calculator. The tool should be used for guidance purposes only and never literally so as to pin all your hopes on the outcome of its results. There are still many variables along the way that could still affect the ultimate goal, therefore prudence should be taken.

Often people who consider a release of equity think only about which equity release plans are available and which plan would suit them best. But the more fundamental question in reality is how much can they actually release with an equity release plan, and given the amount they can release, is equity release the right way for them to go?

An independent and qualified equity release adviser can ultimately offer you the best advice and guide you through the different options available. But using an equity release calculator to find out how the maximum you can release is the first step to finding out whether equity release can help you.

Maximum enhanced lifetime mortgage calculation

An equity release calculator requires you to enter your age and property value in order to work out how much money you could potentially release. Bear in mind however, that another determinant in calculating the maximum lifetime mortgage is due to one’s health conditions; both current and past. Therefore, of the best equity release calculators around, of the online varieties, the best will be able to afford to provide two sets of answers; one for a healthy person and the other for an enhanced lifetime mortgage customer.

As you can see the equity release market is evolving at a pace and the industry tools must keep pace with these changes. For this reason, an enhanced lifetime mortgage calculation should always be included in any set of results to ensure that the full picture is presented and those who are eligible to qualify for an enhanced product are aware of its benefits. This is where a full set of tools and advice from an independent source is essential for the calculation of the maximum equity release.

Getting an idea of the largest amount they could release at their age and given their property valuation, helps many people to decide whether equity release plans may be suitable for them, and whether equity release may even help them raise the amount they need!

Using an equity release calculator to calculate a maximum release is therefore the first step to finding out whether equity release is right for you.

What Are Your Top Key Retirement Solutions?

The Top 18 Equity Release Key Retirement Solutions

As people live for longer and the cost of living increases, it is becoming more and more common for retirees to have financial difficulties during old age. However, a lot of these issues actually arose many years prior to this event, blatantly due to lack of financial planning prior to retirement.

As such, financial planning during retirement has become more important than ever before as managing on a limited budget, fault or no fault of one’s own is a harsh reality for many baby boomers. Therefore, an increasing number of people are looking for flexible ways to get the best value from their existing financial assets in order to address this retirement issue.

The rising popularity of equity release schemes illustrate how much of a growing problem financial insecurity is for many people in retirement. These type of home equity loans offer exactly this type of key retirement solutions many people seek as they usually have no effect on their monthly outgoings.

Let’s look at some of the most significant facts surrounding an equity release mortgage:

Equity release plans allow you to release some of the equity built into your home as usable cash. Both home reversion & lifetime mortgages allow you to do this without the need to sell the house or move out. So, even as you use some of the value of your property, you can continue to live in the house until the end of life, or until you move into a long-term care home
There are two main types of equity release plans – lifetime mortgages and home reversion plans. Lifetime mortgages are like regular mortgages, but only available to people over the age of 55, and have no fixed term. They allow you to release a lump sum of equity from your property which even then remains 100% in your own name. There are usually no monthly payments and the interest charged is added to loan & compounds on a monthly or annual basis. This differs from a home reversion plan where you actually sell a percentage of the property to the reversion provider. In return they provide a tax-free lump sum & a lifetime tenancy agreement is made. Both mortgages will then run on until the end of life, or until you move into care. Most lenders provide a window of 12 months to then sell the property so that the equity release mortgage can be paid off.
A home equity loan calculator can be useful to find out how much equity will be built into your home after a certain period of time. A home equity loan calculator can be useful in a variety of scenarios and is available on a number of financial, comparison and advice websites. A home equity loan calculator is not the same as an equity release calculator and is designed to give you a slightly different information calculus.
A home equity calculator will need some basic information about your property, including the current value of the property, its location, and the yearly rise and fall in the property, in order to work out the equity built into your home. A home equity calculator is therefore a way to calculate simply the amount of equity expected to be built into your home over a certain period of time.
However, an online equity release calculator is a different tool in that it can calculate how much equity one could potentially release from their property. An online equity release calculator UK therefore needs to work out the maximum amount an equity release mortgage provider could potentially afford to lend, based on the expected term of the loan, and the value of your home.
A free equity release calculator is therefore likely to require some basic information about you and your property in order to provide such a calculation. This includes, the age of the youngest enquirer and the current valuation of the property. The free equity release calculator can use this information and based on its database of equity release plans available, can give you a fairly good idea of the maximum release available to you.
An equity release calculator is an application designed specifically to calculate maximum potential release of equity, but there are many other financial tools designed to calculate different things. For instance, there are mortgage repayment calculators that, based on the loan amount, the rate of interest, and term of the loan can calculate how much your payments will be.
There is also a general lifetime mortgage calculator based on the age and income of the enquirer which can work out how much they could potentially borrow. Newer calculus allows some more advanced equity release brokerage’s to offer the interest only mortgage calculator which requires slightly more information such as income details, and details of any adverse credit, in order to ascertain eligibility.
A lifetime mortgage calculator is therefore just one of the many calculation tools available today within the mortgage sector. Depending on what type of application you are using, you may be needed to enter different information relating to your age, health and property, which is relevant to that particular calculation.
Home equity loans provide one of the key retirement solutions to happiness in retirement. There are different borrowing allowances from all the equity release companies, therefore always consult a home loans specialist who can advise on the many forms of home equity mortgages available.
Home reversion equity release plans involve selling a proportion of your home to the equity release lender. There are no monthly repayments with home reversion plans, and the entire amount is recovered when the house is sold, when the proportional share of the equity goes to the lender.
All equity release plans today come with a no negative equity guarantee, which means that your beneficiaries never have to pay anything to the lender even if the equity release loan gets bigger than the property value. This no negative equity guarantee is provided free of charge by the equity release companies, however it is costed into the overall costs and charges of the plan. Should the guarantee not be provided however, the interest rates would be lower on equity release schemes. Therefore any implication of it being free is not entirely true.
Equity release plans are regulated by the FCA (Financial Conduct Authority) and the Equity Release Council (ERC) is the industry trade body that represents everyone that works in the sector, including qualified advisers, providers, lawyers, solicitors etc. Membership of the FCA is mandatory as they provide the licence upon which advisers are able to provide equity release advice. However, membership of the Equity Release Council is not mandatory for advisers or solicitors, however it is for the mortgage providers who offer lifetime mortgage & home reversion products.
Recent research has shown that over 80% of the country’s wealth belongs to people over the age of 60, with over £1 trillion in untapped equity. It also shows that many homeowners over the age of 60 have cash flow problems, and are in fact unable to meet their daily costs. The simple equation for their key retirement solutions lies in the equity tied up in their home. Equity release schemes therefore provides one type of solution, however many such as downsizing property still remain & consequently should always be considered.
According to a recent study by the leading charity Age UK, the two most common ways that people were using their released equity were – home repair or maintenance projects at 46% and paying off existing debts at 35%. Following this statistic come the other lesser reasons to release equity in retirement. These would include holidays, new car, caravan, holiday home, financial assistance for the children, long-term care costs or to create an emergency fund in the bank.
Equity release plans have become increasingly popular after the Financial Services Authority (now FCA) started regulating the equity release sector. This initially started with the regulation of lifetime mortgages in 2004, which later then incorporated home reversion plans from April 2007. All advisers practicing in equity release must have the appropriate qualifications either through the CII (The Chartered Insurance Institute) or the IFS (Institute of Financial Services).
There are a number of independent and comparison websites that offer qualified advice about equity release products, and help users understand which equity release plan could suit them best. Search engines, such as Google, Bing or Yahoo will help you search for any related equity release information needed to enable you to conduct your own research. However, even if you decide which equity release scheme you require you would be unable to go direct to the lender as plans can only be completed by qualified advisers. This offers protection to the lenders to ensure the correct plan is taken out.
The latest type of new equity release mortgage to be invented is the enhanced lifetime mortgage where health can affect the maximum loan you can borrow. Therefore, equity release underwriters assess an enhanced lifetime mortgage as they do with an enhanced annuity plan where a health and lifestyle questionnaire is completed. Depending on the answers & severity of the health conditions, will determine the amount they will lend out. Simply put, the worse the state of health, the greater the maximum release.

There are many facts on equity release offering more concepts for key retirement solutions, as well as about how and why equity release plans have become so popular recently. They also talk about different types of equity release plans that are currently available. For more information visit independent advice websites or consult a qualified equity release adviser.

What Criteria is Required for a Home Equity Calculator?

A home equity loan calculator can be useful to find out how much equity will be built into your home after a certain period of time over the short and long-term. An equity calculator can be useful in a variety of scenarios and is available on a number of financial, comparison and advice websites. A home equity calculator is not the same as an equity release calculator and is designed to give you a slightly different information calculus.

A home equity calculator will need some basic information about your property, including the current value of the property, its location, and the yearly rise and fall in the property, in order to work out the equity built into your home. A home equity calculator is therefore a way to calculate simply the amount of equity expected to be built into your home over a certain period of time.

Online equity release calculators

However, an online equity release calculator is a different tool in that it can calculate how much equity one could potentially release from their property. An online equity release calculator therefore needs to work out the maximum amount an equity release mortgage provider could potentially afford to lend, based on the expected term of the loan, and the value of your home.

An equity release calculator is therefore likely to require some basic information about you and your property in order to provide such a calculation. This includes, the age of the youngest enquirer and the current valuation of the property. The calculator can use this information and based on its database of equity release plans available, can give you a fairly good idea of the maximum release available to you.

An equity release calculator is an application designed specifically to calculate maximum potential release of equity, but there are many other financial tools designed to calculate different things. For instance, there are mortgage repayment calculators that, based on the loan amount, the rate of interest, and term of the loan can calculate how much your payments will be.

There is also a general lifetime mortgage calculator based on the age and income of the enquirer which can work out how much they could potentially borrow. Newer calculus allows some more advanced equity release brokerage’s to offer the interest only mortgage calculator which requires slightly more information such as income details, and details of any adverse credit, in order to ascertain eligibility.

An equity release calculator is therefore just one of the many calculation tools available today within the mortgage sector. Depending on what type of application you are using, you may be needed to enter different information relating to your age, health and property, which is relevant to that particular calculation.

With home loans equity is key to the borrowing allowance, therefore always consult a home loans specialist who can advise on the many forms of home equity mortgages available.