An equity release calculator is a great tool to use if you consider releasing equity from your home. An equity release calculator will help you understand how much tax-free cash you can unlock from your home and decide if it is a good option for you.
What is an equity release calculator?
The Telegraph’s equity release calculator, provided by our partner Responsible Equity Release, sometimes called an equity calculator or a lifetime mortgage calculator, is a free online tool that provides a no-obligation estimate in seconds for a type of equity release product called a lifetime mortgage.
Using it is simple – you enter your age, the value of your property and your contact details and, if you qualify, it will give you an instant quote for four different types of lifetime mortgage products. It will explain the benefit of each product type, plus the maximum amount you could borrow with each.
If you don’t know the exact value of your property you can simply estimate it, or use an online house value calculator.
Why use an equity release calculator?
There are a number of online equity release calculators available, but this calculator allows you to firstly find out if you are eligible for equity release, then gives you an estimate of the amount you could borrow within seconds. The service is completely free and there is absolutely no obligation to proceed.
You can even see what your lifetime mortgage options may be and will also receive a free copy of The Telegraph’s comprehensive guide to equity release.
In addition, our partners, Responsible Equity Release, are on hand to answer any questions you may have about equity release plans so you can make an informed decision that is in the best interests of you and your family.
What is the difference between an equity release calculator, mortgage calculator and remortgage calculator?
Equity release calculator
With an equity release calculator, UK residents aged over 55 who have built up some property wealth can find out how much they can access without selling and moving out. It tells you how much you could borrow based on the value of your house and your age.
When you are in the market to buy a property, a mortgage calculator tells you how much you could borrow based mainly on your earnings, your debts and the deposit you have saved.
After you have bought a property you may want to free up some extra cash to renovate, extend, or to fund other expenses. This is where a remortgage calculator comes in – it helps you calculate how much extra you could borrow based on the equity you have built up in the house, your income and your outgoings.
Do I qualify for equity release?
Before using an equity release calculator you should ask yourself the following questions to see if you qualify for equity release:
- Is the youngest homeowner at least 55?
- Are you a UK resident?
- Do you own or do you want to own a property in the UK?
- Is your property worth at least £70,000?
- Are you mortgage free or able to repay in full with the equity release mortgage?
- Do you plan to release at least £10,000?
What is a lifetime mortgage?
A lifetime mortgage is a mortgage secured against your house that allows you to take a tax-free lump sum, or regular income, without the need for monthly payments. The mortgage plus interest is eventually repaid when you die or move into long-term care and the property is sold.
Lifetime mortgages offer a range of flexible options such as the ability to make regular interest payments to keep the overall cost down, to withdraw the money slowly rather than in one lump sum and to protect a certain level of inheritance for your beneficiaries.
Take expert advice
Equity release is a long-term commitment that can affect the value of your estate, as well as any means-tested benefits you may be entitled to. It is important to always seek expert advice to fully understand how equity release could help you and what effect it could have on your finances.
With the Telegraph Equity Release Service, a qualified equity release advice specialist from Responsible Equity Release will visit you for a free no-obligation consultation at a time that suits you. They can answer your questions and provide a personalised illustration showing how much your equity release plan is likely to cost over time, given the current equity release interest rates.
The adviser will talk you through the range of products available to help you decide whether equity release is your best option. They will only ever recommend products that have the highest standards of customer protection. This means you will be covered by the “no-negative-equity guarantee”, meaning you will never owe more than the value of your property.
If you would like more information on equity release or to arrange a free consultation with an adviser, simply call 0800 029 1087. Lines are open between 9am – 8pm Monday to Friday and 9am – 5pm on Saturday.
Find out more about equity release service now. Request a guide for more information or instantly calculate how much cash you could be eligible to release.
The Telegraph Equity Release Service is provided by Responsible Equity Release. Responsible Equity Release is a trading style of Responsible Life Limited. Responsible Life Limited is authorised and regulated by the Financial Conduct Authority and is entered on the Financial Services Register (https://register.fca.org.uk/) under reference 610205. Only if you choose to proceed and your case completes will Responsible Life Limited charge an advice fee, currently not exceeding £1,490.
The above article was created for Telegraph Financial Solutions, a member of The Telegraph Media Group. For more information on Telegraph Financial Solutions click here.
Information correct at date of publication.