An equity release mortgage is a way for you to loan money against the value of your home, without any regular payments. The institution which loans you the money will be paid back when your property is sold. You can make use of various equity release calculators on the internet to find out roughly how much you would be able to get with an equity release.
An equity release is a lifetime commitment and therefore there are a few things to consider but making use of equity release calculators is a good place to start and can act as a guideline for the decision you make in the end.
When using an equity release calculator, there are a few simple questions you would need to answer in order to get a outcome. You will most likely be asked what the estimated value of your property is, the age of the homeowner, and the value of any loan or mortgage currently secured on the property. They could also ask you where the property is based and what type of property it is as some equity release plans will not offer you their services with certain types of properties.
As an example, Aviva will only take into account 75% of a leasehold flat. Therefore, should you have a leasehold flat with lease term in excess of 75 years & valued at £200,000, then Aviva would only calculator on £150,000 of its value. For someone aged 65 this would calculate at a mximum equity release figure currently of £43,500, instead of £58,000, if this was a freehold house.
You need to have a look around at as many equity release schemes as possible to find the right deal for you. Many of them are all over the internet with handy, easy to access equity release calculators so that you are able to view all your options from the comfort of your own home.
Do not be fooled or hoodwinked by websites that ask for your details before you have even applied for a calculation and/or done an online equity release calculation. These companies have you walking into a practice of data gathering to pass onwards.
An equity release mortgage can provide you with a lump sum of cash or you can opt for a plan that gives you monthly payments as regular income and an equity release calculator will be able to show you how much you will get. Some websites offer you a list of different equity release plans that you can choose from and also various calculators from these different plans so that you can compare them all in one place.