Equity release schemes have been increasing in popularity over the last few years. With the ageing population in the UK, there are increasing numbers of retired people who are struggling to maintain their lifestyle with the increasing costs of living. While there are many finance options available for those who are employed, once you have retired, you may have difficulty obtaining conventional finance. However, equity release schemes have been specifically designed to cater for those aged fifty-five and older. Although some people may be hesitant to speak directly to a broker for fear of being pressured, there are a number of online calculators which can provide some helpful and important information. It is worth taking the time to research your options and ensure that your online tool includes an enhanced lifetime mortgage calculator.
What Do the Calculators Do?
The online calculators offered on equity release providers’ and brokers’ websites allow home owners to assess their qualification for equity release and find out how much of a lump sum may be available to them. They collate the information you provide about your age, gender and property details to assess whether you have sufficient equity in your home for an equity release scheme and the anticipated duration of one of these products.
Unlike a conventional mortgage, where the loan is agreed for a set period of time, equity release is designed to be a lifetime product. Therefore the providers need to calculate your estimated life expectancy to anticipate the duration of the loan.
What is an Enhanced Lifetime Mortgage Calculator?
There are many basic online equity release calculators (Equity Release Calculator.net) which offer information based on your age, gender and property value. However, in the last few years a number of companies and providers have begun to offer enhanced lifetime mortgage plans. These plans are designed to help those people who are suffering from poor health and are in need of raising some cash.
The plans take into consideration that those who have a history of poor health are likely to need a lifetime mortgage with a shorter duration than those people in excellent health of the same age. With this additional factor added into the formula for calculating the maximum equity release, the lender will often offer a greater sum. This would mean that someone in their sixties may be offered a similar sum to someone who is older because of their history of poor health.
Enhanced lifetime mortgage calculators will ask more detailed questions about your health and lifestyle to determine whether or not you would qualify for an enhanced scheme. Some of these questions may seem a little personal or intrusive but they will establish whether your medical history or current condition(s) would qualify you for an enhanced scheme and a larger equity release sum.
Why an Equity Release Calculator is So Important
Although there are a number of specialist advisers and brokers readily available throughout the country, many people are reluctant to seek out professional advice until they are sure they would like to proceed. Many people think of financial advisers as sales people who will try to pressurise you into a product. This could not be further from the truth and there are a number of regulations in the industry to protect consumers from feeling pressured.
However, equity release calculators allow home owners to explore their options in the comfort of their own home with no pressure what so ever. They can find out whether they would qualify for a scheme and the amount of money which could be released. Some people will immediately find that equity release is not possible for them or would not meet their requirements, so they will waste no time making appointments or speaking to specialist brokers. For those who do qualify, the calculators can provide important comparison information about the available products including the possibility of an enhanced lifetime mortgage. Calculators are free to use and you are free to use as many as you like to develop a broad picture of the equity release market.
If you are interested in equity release, online tools and calculators can be an excellent place to start. However, in order to be assured that you are seeing a wide variety of products which may be suited to your circumstances, it is important that you check an enhanced lifetime mortgage calculator. This will ensure that you are aware of all your options and can make an informed choice about whether you would like to proceed and speak to an adviser. Any information produced by the calculator should be shared with your adviser, who may be able to source an even better deal.
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