Realise Your Maximum with an Interest Only Lifetime Mortgage Calculator
September 25th, 2013Cultural and social changes, as well as rising financial needs during old age have contributed in an increased interest in flexible financial solutions for retirement. Interest only lifetime mortgages are some of the most popular equity release products. You can find out the maximum amount you could potentially release with the help of an interest only lifetime mortgage calculation program.
One of the most important attractions of equity release plans is that they allow you to have access to the value built up in your home without selling it. There are no constraints on what one can do with released equity and different people choose to do different things. Some of the popular uses for released equity are paying off an existing debt, a vacation, cash gift for family, and home improvement works.
Interest only lifetime mortgages have become popular due to several important reasons. They are currently the most flexible equity release products in terms of offering control on repayment. There are currently two interest only lifetime mortgage providers on the market – Stonehaven and More2Life.
However, a contender for this category must now come Hodge Lifetime with its Flexible Lifetime Mortgage Plan. Although there is no facility to repay the interest monthly, you do have the ability to repay over 10% of the original capital borrowed each year. This essentially means this can be the birth of a capital & interest equity release scheme in the making. 10% of the loan is more than the interest rate being charged on the lump scheme which has an interest rate of 5.79% monthly at present. Therefore, paying this 10% capital repayment will actually result in the balance reducing! A first in the field of lifetime mortgage schemes.
Lending criteria for interest only lifetime mortgages are mainly age and property valuation. The older you are the more you are generally likely to be able to release. This is because the longer the term of the loan, the more the risk for the lender. Generally speaking, therefore, lenders will be more reluctant to lend to a younger and healthier individual than an older individual, or someone in poor health.
The interest only lifetime mortgage calculator is an online tool offered by leading equity release providers such as Compare Equity Release.com. The tool is essentially a software programme developed to work out the maximum potential amount that could be released based on certain relevant details, including age and property valuation.
There was a time not so long ago, when finding out the maximum amount that can be released from any particular provider meant making an appointment in person or by phone with the company. Today, online calculators have made the process easy, quick and convenient.
Whether you need to release equity to fund a holiday, make a one off purchase, pay off existing debts, or to gift to loved ones, an interest only lifetime mortgage calculator can help you find out how much money you could release from your property through an interest only lifetime mortgage.
Speak to an interest only lifetime mortgage adviser today to check whether you could qualify.
Alternatively call the Compare Equity Release team on Freephone 0800 678 5169.
