Interest Only Mortgage News

Facts about a Lifetime Mortgage Calculator

March 10th, 2015

Lifetime mortgage calculators have evolved from the simple concepts they were in the early days of equity release schemes. Technology has ensured that you can get more answers from these calculators as a retiree than ever before including creating an all-in-one that offers results for all equity release products on the mortgage. In fact these calculators have become so useful to the population that it is perhaps the most used online tool for equity release today. Numerous other tools are being created around these calculators including equity release comparison tables. Learn more facts about calculators to determine how they can truly be a help to you.

Lifetime Mortgage Calculator
Depending on whether it is an all-in-one calculator or specific to a type of lifetime mortgage, you will be given results based on your age, property value, and health. These calculators have become such popular tools to start research about equity release as a means of determining whether a homeowner can afford the product. It keeps you and others from talking with a lender or home reversion specialist until you are ready. You can walk into your meeting with a specialist armed with knowledge of the industry, potential equity release amounts, and make an informed decision on whether to pursue the product at all.

The home reversion calculator provides one result — the loan to value amount you can release from your home. This equity released value may be between 20% to 100% of the home value and usually taken as a lump sum, although equity release provider Bridgewater do have a flexible withdrawal home reversion plan where you can release equity in stages.

However, overall it depends on the product, your health, age, and property value. Home reversion is also a potential that does not require any repayment of the money or interest, whereas lifetime mortgages now have repayment facilities, or compounding of interest.

Your health can increase the amount of loan given based on your age. Someone age 55 could release as much as a person 65 years old if there is cancer, heart disease, or another illness that lowers their life expectancy. Equity release comparison tables which are drafted on the results of lifetime mortgage calculators show you different lender loan to values and potential enhanced funds as well as different mortgage options. For example you may have a table that shows you standard, interest only, enhanced, and home reversion values for equity release products based on the information you input into the calculator.

The next step is being able to compare different products and companies so you can make an informed decision on who offers you the best deal. This is why using the equity release comparison tables can be extremely helpful to you.

The Information Calculators Need
While some of the information you need to supply has already been discussed, it is also important to mention that your name, telephone number, and an email address may be requested. This is in addition to your age or date of birth, health issues, and property value.

Already you understand the age, property value, and health determine the amount you can release from your home based on the various lifetime mortgages and home reversion plans available to you. The equity release calculator website is also built to supply you with this information via email. With an email sent to your inbox, you have the results to go over and analyse, as you consider making a decision on which company, product, or if it is an affordable option at all.

Your name makes everything more personal to you as well as a way for the company to call you and speak directly with you if you request it. Lenders and home reversion companies are not going to hound you, but they are going to want to speak with you and go over your results. By offering to explain the results you received on the website as well as in email, they are giving you a chance to ask questions. You can always say you are not ready to speak with anyone and the company or website will not call back. The point is that you have access to a representative should you have questions about the results including how accurate those results might be.

Accuracy of Lifetime Mortgage Calculators
You need to remember that all lifetime mortgage calculators provide an estimate based on the data you give the calculator. Human error can vary the results. For example you may not be aware of your actual home value, which would alter the amount you can receive in equity release greatly depending on how off you are in that value. You may also use your age and not the age of the youngest homeowner. The youngest homeowner is the age any company works off. Take the results as an estimate and not fact and always seek independent equity release advice following the results of an equity release calculation.