Tag Archives: Equity Release Calculator

Why Equity Release Calculator Interest is on the Increase

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Financial markets change based on interest in the market. During the recessions England just went through, a few things occurred. One, no one was spending any money. Secondly, money was tight due to lost jobs, lost investments, and overall many foreclosures occurred. This created an issue for all financial products including equity release. Most needed money, but the outlook was not too great. This has changed with equity release calculator interest on the rise. In the first half of 2014, 10,000 equity release products have been sold according to recent news releases. Furthermore, websites are showing more traffic to their equity release calculators, as more people rush to see if there is a potential product available for them.

Calculating the Interest of Consumers
Lifetime mortgage and a home reversion company are seeing renewed interest in their products. Already for the first half of 2014 approximately £641 million has been attained in equity release with about half of that amount in quarter 2. This is about the same as ten years ago, and the highest numbers seen since the subprime mortgage crash occurred.

All of these stats are coming from the Equity Release Council which prove there is a reason you might wish to look at equity release if you are having issues with funding your retirement.

Funding your Retirement Better
Most individuals have sustained such losses in the last few years that retirement is going to be hard when it comes to money. While there is enough now, as the person lives longer they will run out of cash. Being cash poor, but property rich is a good thing. If you have yet to hit this point but know it is coming, you can do something about it by using the equity release calculator. The fact that equity release calculator interest is up is also a good thing for other reasons.

Interest in these calculators ensures they are online for you to use and they are free. It also means the websites supplying the calculators are going to keep up to date information handy for you. While some websites might stagnate and not update for current market products, there are those which continue to ensure you have more accurate details.

It allows you to find products of use to you, get an accurate picture of equity you can release, and then decide if you want to speak with a broker.

Benefits of Calculators
Besides the obvious result in figuring out if equity release is right for you, these calculators are available 24/7. You can do research in your own time. It makes it easy to get answers when a brokerage firm is closed. You cannot always reach a broker qualified in equity release because they close the office and go home for the night.

It also gives you a chance to figure out if the product is right for you or if you need to consider other alternatives. There is nothing fun about going through an entire process with a broker to find out in the end they cannot help you. It can still happen even using the calculator but it definitely happens less often.

Entering Information Appropriately
It is up to you to enter the information into the equity release calculator that is accurate if you want a depiction of actual options. You will need to use the youngest homeowner’s age. Even if you are 65, if your spouse or significant other is 55, you need to use that age providing they are able to sign a loan or have to be involved for home reversion to work. It all depends on who actually owns the property. If you are a single home owner and your other family is not mentioned on the property title then you can use your age.

Next you need proper home values. You can get these online as well by searching Zoopla and other sites for recent sales that are similar to your home. This value needs to be as accurate as possible because the property value of your home is going to determine the amount of equity you actually have to release.

As long as you have these numbers, you can use the calculator and then seek out independent broker advice when you are ready for the next step. The above are reasons equity release calculator interest is on the rise particularly because there is a possibility for you to get funds in retirement that will help you keep your current lifestyle without being too costly.

Can I top-up my Equity Release Mortgage?

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An equity release scheme works out to be the best option for many people who own a valuable property, and need additional cash but do not wish to sell the property. Equity release is fast becoming popular as a way to add to your income during retirement. Interest rates are very competitive today, and the market has some of the most flexible equity release schemes on offer. As such, this may be a good time to explore the option of an equity release loan on your property.

For those who already have an equity release scheme in place, it may still be a good idea to shop around for alternate equity release schemes for two possible reasons. One, it may be possible to get a more competitive mortgage and make significant savings by switching, and two, because you may have exhausted your existing loan and may need an additional loan.

Some lenders do offer top up loans on existing equity release plans. If you have had your existing equity release mortgage in place for more than five years, you may be eligible to apply for a top up. There are independent advisers who can give you advice on equity release top up loans, and alternate schemes.

Some equity release lenders charge early repayment penalties if you repay the loan earlier than a certain period of time. These penalties, if any, vary with each equity release scheme but may be quite high. However, more competitive terms of modern equity release schemes may mean that in spite of an ERC you could still stand to make savings by swapping your existing mortgage for a new one.

If you have had an equity release scheme and are considering shopping around for an alternate scheme, it may be advisable to seek the guidance of an independent financial expert. Independent advice is invaluable in matters such as financial loans, and many financial advisers also handle the entire process of dealing with your existing lender and setting up the new loan.

The internet has some good resources for equity release information and comparison. You can find companies that offer financial advice and information and there are equity release calculator tools available online which may help you get a rough idea of how much additional loan you are eligible to get. Online comparison sites are also useful for equity release comparison and to find the best equity release scheme available now.

Are Equity Release Schemes available on a buy-to-let, 2nd home or holiday home basis?

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Equity release is a popular way of raising money on your property without having to sell the house. There are different types of equity release mortgages, but essentially it is a loan taken against the value of the home, and is repaid when the house is sold, after the owner has died or moved into care. If you have more than one property, it may be possible to release equity on the second home as well. Buy to let equity release is now available from certain equity release lenders.

Some lenders offer equity release loans on multiple holiday homes as well as buy to let homes. Loans are usually offered only if the landlord or the landlords’ family does not rent or live in the property. Buy to let equity release rates are different from home equity release interest rates so it’s worth using an equity release calculator specially designed for buy to let equity release.

Of course, most lenders do not lend if there is an existing large mortgage on the property. The mortgage, if any, must be smaller than the equity that can be released on the property. The amount of equity that can be released on a holiday home depends on several factors, including the age of the applicant. Buy to let equity release is generally only offered if the youngest applicant is over 55 years of age. Landlords with up to 5 buy to let properties can potentially release a proportion of the equity on each property.

The amount of the loan generally varies with age. The more the age of the applicant or the age of the youngest applicant in case of joint applications, the more the proportion of equity that can be borrowed. Also, loans are generally offered in lump sums as opposed to monthly borrowing. Buy to let equity release schemes are becoming increasingly popular, especially among landlords with an extensive property portfolio, as it opens up many possibilities for them in terms of financial planning and further investment.

As with any equity release mortgages, buy to let equity release mortgages involve some setting up costs. These include professional valuation fees which are usually in proportion to the value of the property, application fees, and solicitors’ fees. In addition, if you go to an independent financial adviser, setting up costs also include any fees charged by the adviser.

Individual buy to let equity release schemes may also have additional costs such as early repayment charges. These vary with each policy and as with any financial loan, it is important to find out about all the associated costs before entering into any legally binding contract.