What Data is Required for an Equity Release Calculator UK
August 14th, 2014The Internet is full of websites trying to grab your details. Plenty of news shows, newspaper articles, and Internet articles have warned us against this. Several sites ask you to fill out a form supplying personal data, where you learn after submission that companies will email you or call you with quotes, rather than giving you the answer you want immediately and right then. You can get pretty wary of these sites and pretty irritated with repeated calls, thus this article was drafted to help you find an equity release calculator UK that will work as you hope, rather than inundating you with emails and phone calls that are unnecessary at the moment.
Two Questions are all that’s Necessary
A proper website with a proper calculator should ask you two questions, rather than ferreting out personal details that do not provide you with any results. Basically, sites that try to gain your personal details will tell you the next stage is when they will supply you with the estimated result you seek regarding equity release products and potential maximum amount lump sum details. Avoid this type of site and instead search for the one willing to give you the result after asking these two questions:
• The age of the youngest homeowner (this is the person actually named on the property title)
• Home value
Why these Two Points
In order for the equity release calculator UK to provide you with proper details, it needs the two things named above. Your age determines if you qualify for the loan, plus it determines where you are on the mortality table. Mortality tables for financial products indicate if you are younger or older and thus whether you qualify for a larger lump sum, with regards to equity releases. The premise is the older you are the less life you have left; therefore, the company will recoup their investment earlier and less interest will accrue on the loan.
You have to be at least 55 for lifetime mortgages and 65 for home reversion. Home reversion is not a loan but a partial or full sale of the house you own. You owe nothing in the end with home reversion, whereas you owe interest and a principle sum with lifetime mortgages. Learn more about the differences before you decide on a product for you. In fact, use the home reversion calculator to see differences.
The value of your home determines its worth. You need at least £60,000 in home value. The calculator will look at loan to value percentages which are derived from your age and the valuation of your home. The more accurate your home valuation is, the more accurate the results from the calculator – it really is as simple as that.
Home Reversion
The calculator will examine your age and the percentage of home you are going to sell. You can play around with the percentage you intend on selling to determine the percentage you can gain in a tax free lump sum. The more you sell the more value you get from the home, which is why the loan to value percentage differs from the standard lifetime mortgage calculation.
Interest Only Lifetime Mortgage
An interest only lifetime mortgage calculator also looks at different loan to value criteria. You pay off the interest each month as it accrues based on an APR. As you make payments, the lump sum provided in an equity release is different than the standard lifetime mortgage. This usually makes a lower loan to value result.
Enhanced Lifetime Mortgage
An enhanced lifetime mortgage calculator can be a part of a standard equity release calculator or it can be separate. Most are separate because of the criteria required. Your health is a factor here, where the calculator is assuming certain health issues. You may have more health issues than you know, thus the true amount awarded to you can differ once you fill out the health and lifestyle questionnaire. The result with enhanced lifetime products is more money in a lump sum due to the assumption you will die faster. The youngest homeowner has to be the one sick for this product to be offered.
Getting Standard Results
Most equity release calculator UK results are for standard lump sum mortgages, which can help you with drawdown mortgage results as you have an account to draw on with your lump sum. You get to use it as needed and interest only adds on to the amount you use. For a standard lump sum, interest is paid at the end. Results will vary so check to make certain of accuracy.
