Use an Equity Release Calculator UK for Quick Results

For people at the age of fifty-five or over, there can be limited finance options available. In the last few years, the equity release marketplace has grown significantly and now is one of the most popular sources for finance in this age group. Equity release has been shown to be a popular method for older people to use the equity which has built up in their home to obtain a tax free lump sum which can be used for uncertain times, long term planning, supplementing their pension or assisting children or grandchildren to start on the property ladder. Many people have found that with an equity release calculator, UK residents can quickly obtain important information which can help them to make the decision about whether equity release is suited to their needs. 

Are there restrictions to what the lump sum can be used for?

The lump sum from Stonehaven equity release is tax free and can be used for any purpose whatsoever. Many people use their lump sum for a variety of purposes from purchasing a new holiday home, paying off debts, through to improving their lifestyle in a way their current income would not allow. Some plans even offer flexibility in how you receive the equity release, offering a maximum lump sum or a smaller initial amount and an additional monthly income. For a great number of people, equity release allows them to relax and enjoy their retirement without worrying about money. 

How does equity release work?

The equity release schemes focus on the equity which has accumulated in your property. This is the current market value of the property less any existing mortgage balance. For people who have owned their home for many years without increasing their mortgage, as the market value of the property has increased, the equity tied into the property has also increased. This can create a good fund of finance which would normally only be available if the property were to be sold. However, with equity release you can release funds from the home but you will be granted the ability to live in the property for the remainder of your life. The property is only sold upon your death or in the event that you move into a facility for long term care.

How is the release figure calculated?

Unlike conventional repayment mortgages which consider your annual income in addition to the value of your property, equity release schemes have a number of other factors which are considered. Since the schemes are designed to be a lifetime mortgage for the remainder of your lifespan, the figure for equity release is based on your age, gender and value of your property. This can be a fairly complex formula, which is why many people utilise an equity calculator. UK home owners can quickly gain a release amount figure which can be assessed against their requirements in order to make the decision of whether they should proceed or not. 

What information is needed for the calculator?

There are a number of different forms of equity calculator UK home owners may find on the internet (http://www.equityreleasehome.com). There are some which provide a more basic calculation based on your age and value of your property. However, there are also others which are more sophisticated and offer a tailored quotation. For these calculators, you will need to be prepared to supply some personal and financial information. This may include:

• Your age

• Your current mortgage balance

• The current market value of your property

• Details of your health and lifestyle.

This information is used to calculate an estimated lifespan in order to assess the potential duration of the scheme. With these types of equity calculator, UK home owners can determine if they meet the minimum requirements, the amount of release available and if they qualify for any enhanced plans based on their age and state of health. Most people will be offered standard rates based on their age but if you qualify you may be offered the enhanced plan available through the provider. 

With an equity calculator, UK home owners can obtain a quick result with their maximum possible equity release figure, rates and terms which would be available. This can prove invaluable for initial research as to whether equity release would meet your needs. This can help you to decide if you would like to proceed to an equity release application to assist with your requirements for finance, or if you should look for another alternative instead. While these calculators can provide accurate information, it is important to realise that you will still need to consult with a professional equity release adviser in order to be assured that you have secured the best deal possible.