The current global financial crisis has affected everyone in many ways. For those who have retired or were planning to retire, the credit crunch and related crash in the markets have wiped £billions from pension funds. For many, savings and pensions that were once thought to provide a strong foundation for retirement have been compromised, and these people will need to supplement their pensions with other financial products.
X
A great option for these people is to look into equity release schemes. A great place to start researching how best to conduct the release of equity from their property is to start with equity release calculators; also known as lifetime mortgage calculators. These online tools are very helpful for providing basic information to start a discussion over the potential options available for those looking for equity release schemes and products.
X
The equity release calculator, or lifetime mortgage calculator, is the first stop for many researching equity release schemes. The great thing about these easy-to-use online tools is that they provide an idea of what is possible. This popular online equity release calculator does just that.
X
The equity release calculator asks for the age of the youngest homeowner. This is important, as equity release schemes are only available to those over the age of 55, and age bears an important part of the value of equity release. The value of the property is also required, for obvious reason as equity release schemes are generally based on the principles of the interest only home mortgage.
If there is any other mortgage or loan that uses the property asset as collateral, the outstanding value of these should be included as well, as they affect the overall value of what is available in an equity release scheme. Therefore any existing security on the property such as a mortgage or secured MUST be paid off prior to completion. This is usually resolved by using monies from the equity release itself, as the process can be completed by a simultaneous transaction at the solicitors.
X
The first option presented through this equity release calculator is for the most common and standard plan. This is based on a person in good health, starting from age 55. For those who have suffered from ill health may be entitled to an enhanced lifetime mortgage programme. The total potential maximum amounts for each health option is listed for each. The equity release calculator provides a clear understanding of what the boundaries of the financial package will look like. Then it is a matter of discussing what the options for finance are within that value. The calculators will provide a maximum release of equity figure. Bear in mind this should not always be an indication of how much should be taken. Best advice would be to plump for the optimum amount based on your requirements instead.
X
Alternative options than roll-up equity release schemes could include an interest only home mortgage, or a more specialist Stonehaven interest only mortgage scheme. The equity release calculator is linked to an accredited financial institution, so it is possible to start discussing that figure right away with a financial expert. However, for those looking to shop around, the figures will be helpful in their research.
X
The calculator noted above is a lifetime mortgage calculator, and is tailored toward those specific kinds of equity release schemes.
X
Home Reversion Plans have different criteria which include more details about the gender of the applicant and his or her state of health. Both have an important impact on this kind of equity release product value.
X
The current global financial crisis has been hard on pensions, and many who thought they had enough money stored in savings and pensions are now looking for alternative financial supplements for their retirement. Equity release is one such supplement, and equity release schemes can really help those looking for a release of equity from their property investments, without having to sell.
This allows the property assets to remain in the inheritance chain, but still provides a way of recovering some of the value in the asset for today’s needs – in the form of an interest only mortgage or other financial solution. A great way to start on the search for the right equity release product is through the use of equity release calculators which show the monetary options available.
X
To discuss your retirement mortgage queries, please contact the Mark on 0800 678 5159 or email mark@equityreleasesupermarket.co.uk


