The useful tool of an enhanced lifetime mortgage calculator has a range of benefits that will determine the amount of enhanced mortgage amount you can borrow against the value of your property. The Lifetime Mortgage Calculator is essentially a tool to give you a good guide that will help you to establish what your final figure might be. Calculation is based on an assumption of your health and the estimated value of your home and it is important to stress that some companies may use this as a data collection tool to offer you other financial products that you may not need or want. Many of these tools that are available are simply a marketing tool that sends out your information to associated companies so be very careful which equity release calculator you choose.
How the calculation is worked out is based on the information you enter. Remember, the figures such as the valuation of your property, may only be used as a guide and the health information entered is used to calculate what the ultimate loan amount will be and can only make certain assumptions. The lifetime mortgage calculator cannot give you a definitive amount, only a guide on what you can expect to receive. This is why it is always beneficial to use a specialist financial advisor who will be able to assess your loan amount in real time and will work through the figures with you. The usefulness of an equity release calculator is not to be underestimated but it is only a specialist financial advisor who can offer you accurate figures and interest rates.
The Equity Release Calculator will only assume your health details. There are no clever ‘behind the scenes doctors’ to throw out results and the calculation cannot possibly base the information on anything other than the property value of your home which is what the calculation is based upon. Your age is also taken into account and if a joint plan is being considered then you must remember to enter the age of the youngest member of the joint plan.
When your enhanced mortgage is worked out in real time figures in a joint plan, it is always the health and age of the youngest person the amount of loan is based on. Therefore, if you are considering a joint plan and the younger of the two is healthy and does not have a shorter life expectancy then an enhanced mortgage plan may be refused and a standard one offered instead.
Lifetime mortgage calculators are designed by providers to instigate a plan and are only ever used as a tool to estimate a calculation to give you a general outline of your eventual enhanced equity release mortgage and must be taken as a general guideline only. Be aware of which calculation you might be tempted to base your research on as some companies may well use your details to offer other financially-based products.
Always seek the advice of a specialist equity release advisor when it comes to sourcing the best product on the market for your individual, personal circumstances. An accurate calculation can be achieved with an advisor who is specially trained in the area of such financial products. A lifetime mortgage is a one-off product and once completed can be difficult (even impossible!) to be reversed and must be considered with the correct advice.
Equity release calculators are useful tools and are designed to give you a rough outline of the possible amounts and to enable the tool’s owner to contact you about enhanced lifetime mortgages. By completing one you are possibly inviting other companies who could contact you directly with the purpose of bringing to your attention the other products available on the market.
