The best tools are always the ones that give you the most accurate and trustworthy information including a free equity release calculator. There are dozens of calculators for mortgages and equity release products online. These calculators work in different ways depending on where you find them. Obviously a calculator that is simple to use and easy to find on the Internet is going to be a great way to start. But there is a lot more to the situation than just simply finding the tool.
Trusting the Tool you Find
Companies like Saga offer equity release calculators. Even Aviva has one. Yet these two calculators work in different ways because of the companies. Aviva has one product their calculator offers results for, the Aviva lump sum max plan. Saga works with Just Retirement and does not provide any of their own products, which makes a difference regarding the results from the calculator.
Just typing in free equity release calculator into a search engine is not enough. You want to look for reputable firms which offer independent advice as well as independent products. This ensures you are able to get information from the calculator that is wholly independent of another company. You can trust the details because you are not being tied to certain parameters. There are at least two firms that can be named which are reputable and accurate with regards to calculator tools: Manchester Equity Release.com and CompareEquityRelease.com.
Beyond receiving accurate information from the lifetime mortgage calculator you also want to ensure the information needed to fill out the form is not going to be your entire list of personal details. You want to receive a quote without being hounded by emails and phone calls.
Plenty of online sites offering quotes take your information and promise results in the next step; however, you receive emails instead of instant results. They have done this as a marketing ploy to send you information.
This is not to say the two named companies won’t ask for information, but they ask for less, provide a complete quote, and if necessary you can follow up with an equity release advice team member to check the results. It is up to you to make an additional enquiry to ensure the results are accurate.
Doubling checking the results allows you to see if you missed something during the calculation process that could increase the maximum equity release sum higher. Only after you have information is it easier to speak with an adviser and move on to the next stage of the process to gain the funds you need in retirement.
How the Best Calculator Works
Now that you know where to find the calculators and how to search for others, it is best to know what type of information the calculator should be asking for. Independent sites like Equity Release Supermarket ask for your age and the home value in order to outline a quote for you.
Your age determines if you qualify for the equity release product since you need to be 55 years of age at least for lifetime mortgages and 65 years old to start the home reversion process. Age also determines the mortality index with regard to life expectancy.
Equity release companies work on the assumption that if you are older there is less life left. It allows for a larger release of equity because the repayment should be earlier than someone who is younger. These companies also have products for those with ill health, so the online calculator may ask you a list of questions regarding any health concerns you have such as diabetes, heart disease or if you have ever smoked.
Valuing your Home
Home value is the second piece of information the equity release calculator will need. The amount of equity you can release is dependent on whether you have it tied up in your home. The more value to your home the more that can be released based on a loan to value percentage. The loan to value percentage is based on age plus value and thus determines the monetary maximum amount you can receive in tax free cash.
As soon as you have conducted your research, feel comfortable about the estimates you received, you can begin double checking the free equity release calculator results with an independent adviser. They do need to be qualified and regulated by the Financial Conduct Authority to ensure you are receiving proper information, which CompareEquityRelease.com and Equity Release Supermarket do provide.