Latest Equity Release News & Updates | Equity Release Plans

Feb

Is Using an Equity Release Calculator Dangerous?

Categories: Equity Release

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For those people struggling to manage on their pensionable income or looking for finance for a larger purchase, there can be few options for conventional finance when you reach a certain age, especially when on a restricted income. Equity release schemes have been especially designed for the over fifty-fives age group. They allow home owners to release the equity tied up in their home, without needing to move home or make monthly payments compromising their monthly disposable income. There are a number of equity release calculator tools available, these can allow you to explore equity release, compare deals tables and confirm whether you meet the eligibility criteria. However, in this age of cyber crime, many people worry about whether using an equity release calculator is dangerous.

What Are Equity Release Calculator Tools?

An equity release calculator is an online tool which is provided free of charge on the websites of equity release companies and brokers. They allow people to learn more about equity release, compare deals tables and establish whether they would qualify for an equity release scheme.

These calculator tools have been pre-programmed with qualification criteria such as:

• You need to be aged between fifty-five and ninety five
• You must be a UK home owner
• Your property value must be a minimum of £50,000.

By answering the questions posed by the equity release calculator, home owners can determine if they meet the specific criteria, learn what the maximum lump sum offered would be and receive details of the schemes and plans which are appropriate to their circumstances.

Why Would an Equity Release Calculator be Dangerous?

In order to ascertain your qualification for equity release, you will be asked questions about your personal circumstances and your property. However, there is little concern about them being dangerous. Most calculators offer complete confidentiality. In fact, many calculators will allow you to use them anonymously without providing any identifying information. Although you may be asked for your age, gender and postcode, this is not sufficient information for any type of fraud. However, you should be wary of any calculator which will not function without you providing your personal contact information.

In most cases, the calculator may prompt you with a question of whether you would like an adviser or broker to contact you, but this is an optional service. Most lenders and brokers appreciate that home owners wish to shop around with no commitment or sales pressure. This means that they allow their calculators to be used for free and will actively encourage home owners to use multiple calculators to gain a good insight into the products available on the market.

Can the Figures from an Equity Release Calculator be Relied Upon?

Many people are also wary of basing their future plans on the figures provided by an equity release calculator. Many of these calculators are extremely accurate, but there are some limitations. These include:

• They work on mathematics only: The calculators are programmed to work out a mathematical formula only. This means that they are only accurate if you have provided accurate information. They have no facility to check the market values which are current in your area, the balance of your outstanding finance or other details. This puts the responsibility on the home owner to ensure that the information they enter into the calculator is accurate.
• They are restricted to a particular product range: Calculators are only programmed to the criteria of the specific product range. Calculators on specific company websites will be tied to their particular range of products. It can provide a wider range of product information if you use a calculator from an independent broker. It is also recommended that you use more than one calculator to assess the marketplace more fully.
• Check comparison tools: It is also a good idea to check websites which offer equity release compare deals tables. These provide simple tables which allow you to compare different rates and packages. This can be a simple way to check the financial implications of equity release without giving any personal details.

If you are interested in equity release, compare deals tables and equity release calculator tools can be extremely beneficial for your research. This can enable you to move forward with a more rounded knowledge about equity release and the types of deals which are available for your circumstances. This can enable you in making informed decisions and choices about whether you would like to move forward or explore alternative avenues.

Feb

All Aboard the Income for Life Train

Categories: Equity Release

Tags: Benefits of Equity Release, Benefits to Equity Release, Care Home, Choosing Equity Release, Conventional Mortgage, Equity Release Calculator, Equity Release Loan, Equity Release Packages, Equity Release Product, Equity Release Schemes, Equity Release Sum, Inheritance Planning, Inheritance Tax, Inheritance Tax Threshold, Releasing Equity

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Many people dream of the prospect of their retirement. However, in the current economic climate with quantitative easing measures which have compromised the real world value or pensions, a great number of people are worrying about the prospects for their retirement. Once you reach retirement age, the avenues to conventional finance can sometimes be closed to you. However, equity release schemes have been specifically designed for the over fifty-fives age group. This can enable you to release funds tied up in your property. Equity release calculator programmes are readily available to check whether you would qualify and how much you could expect to receive.

How Equity is Defined
Equity could be described as your stake in your property. Equity release calculator tools essentially calculate your equity by taking the balance of any outstanding mortgage from the value of your home. When you first purchased your property, you may have borrowed ninety per cent of the property price from the bank as a conventional mortgage. This would mean that you would have had ten per cent equity. As time passes and you pay off more of your mortgage, together with property prices increasing, you would find that you have more and more equity tied up in your home. For many retired people, they have little to no mortgage on their home, but may be struggling for actual cash.

For the purposes of equity release, many people can expect to release between thirty and fifty per cent of their equity as a lump sum or additional income. The reason for this is that the equity release loan requires no monthly payments. The interest on the loan is accrued and added to the balance of the loan in the form of compound interest. You are guaranteed the right to residency in your home for the rest of your life and the balance of the loan is only repaid once you have passed away, or if you move into a care home for the long term.

The Benefits of Equity Release
When considering equity release from your property, equity release calculator tools can highlight a number of benefits from specific equity release packages. However, there are numerous benefits to equity release which apply to the majority of schemes. These include:

Obtain a lump sum or an additional income stream: When choosing equity release, you will have the option of obtaining a tax free lump sum or an additional income. The equity release product allows you to borrow money against the value of your property to finance this sum. This can be very helpful if you are planning a large purchase such as a second home, need to supplement your pension or are looking to financially assist your children or grandchildren. There is no restriction to how you spend the lump sum or income; it is yours to do with as you please.
Improved lifestyle: For many people equity release is an effective method of improving their lifestyle. Essentially you have leveraged the value of your property in order to live off your investment. This can mean that you have additional disposable income without compromising your existing income. This could mean that you could take a once in a lifetime dream holiday or simply spend more time with your family. This type of scheme can allow you to fully enjoy your retirement without worrying about bills and finances.
Effective tax planning: Not only is your equity release sum tax free but you can use the funds to plan tax effectively. Many people opt for an income or draw down facility rather than a lump sum so that they can minimise their tax risk and not compromise their eligibility for certain means tested financial assistance. However, some people utilise equity release as a method of inheritance planning. By gifting money to your beneficiaries while you are still alive, you reduce the risk that they will need to pay inheritance tax when you pass away. The current inheritance tax threshold is set at £325,000. This may seem like a high amount but it will include the value of your property. By releasing the equity from your home, you can continue to live in your home but financially assist your family and help them to avoid paying inheritance tax in the future.

If you are interested in releasing equity from your property, equity release calculator tools can provide a good starting point for your research. They can provide you with details of schemes which you would qualify for and provide an insight into the maximum lump sum you would receive. This will enable you to have the information necessary to make an informed choice about proceeding forward with an application.

Oct

Comparing Equity Release Plans and Providers

Categories: Equity Release

Tags: Compare Equity Release, Compare Equity Release Plans, Equity Release, Equity Release Calculator, Equity Release Morgages, Equity Release Plans, Equity Release Providers, Equity Release Schemes, Long Term Care, Pension, Releasing Equity

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As a pensioner, it is not always possible to meet your daily needs with the little pension amount that you receive on a monthly basis. With an equity release plan, you might just be able to secure your retired life; however, you will need to have ownership of a property. There are many different types of equity release schemes which will make it possible for you to release money from all or a portion of your property.

The great thing about equity release plans is that you do not have to leave your home even if you sell it to an equity release provider. Eventually, when you die or move into long term care, your property will be sold to repay the equity release provider.

In order to choose the right equity release plan or the right equity release provider, you will need to compare equity release mortgages. The internet is filled with many different useful websites such as www.EquityReleasePlans.net who make it possible for you to compare and analyze the different equity release plans and providers so that you can chose the plan and provider that are best suited to meet your needs and requirements. They can be contacted on 0800 678 5169

These websites are free, interactive and can be of great assistance when conducting your own research on equity release. These websites make it possible for you to easily compare equity release plans and providers through the use of equity release calculators. Equity release calculators make it possible for you to instantly determine how much money you can borrow from a specific provider. Equity release calculators are the perfect way to compare equity release plans and providers.

When comparing equity release providers, you should make sure that you check the reliability and the credibility of each company as well as the total amount of years that it has been in business. One of the most important factors to focus on when comparing equity release providers is the interest rate that they offer. Based on its reliability, credibility, and experience, you will be able to choose an equity release provider that offers the highest returns from releasing equity from your property.