Check Out Finance Online With an Equity Release Calculator

With the development of the internet, more and more people are interested in exploring their financial options online. The equity release marketplace is no different from any other area of financial services and there are numerous online equity release calculators available for people to research and assess their options.

The Advantages of Online Equity Release Calculators

Online equity release calculators have a number of advantages. They are free to use and confidential, which means that you can research your options in your own time without worrying about sales calls or emails. They can provide a fast answer to the question of whether you meet the minimum criteria for qualification. They can also provide a maximum lump sum available figure in order for you to assess whether this is sufficient for your needs.

Many people have used online equity release calculators to obtain equity release figures and information which could be relied upon when moving forward. A great many people worry about feeling pressured by brokers or wasting their time applying for finance which they would not qualify for. Online equity release calculators can reassure people about their concerns and allow them access to all the information they would need to make an informed decision about whether they wish to proceed with an equity release application.

The Limitations of Online Equity Release Calculators

Although online equity release calculators are a great research tool, it is important to be aware of their limitations. There are several points which you should consider when using one of these tools. These include:

• The calculator is purely mathematical: These types of tools are pre programmed to take the information you supply and collate it into the formula to determine equity release qualification and amounts. They have no facility to check the information you have provided, so if your figures are inaccurate, the amount of release figure cannot be relied upon when moving forward. It is best to double check your information including asking your current mortgage lender for an up to date balance and properly researching the value of your home.
• They are linked to a certain set of products: Online equity release calculators are linked to certain product ranges. In the case of calculators on providers websites, they will only be able to supply details based on the provider’s criteria and product range. The only way to overcome this issue, is to use multiple different online equity release calculators and try to choose ones from independent brokers, who will have wider access to the various products available in the marketplace.

Questions to Expect with Online Equity Release Mortgage Calculators

When using online equity release calculators, you should be prepared to answer personal and financial questions. This will include details such as your age and gender. However, it may also ask specific questions about your property including the location, whether it is freehold or leasehold, the general condition, value and what amount of mortgage is currently outstanding against the property.

Many people worry that equity release will not be available to them when they have an existing mortgage; however, this is not necessarily the case. Generally, the existing mortgage would need to be repaid before the equity release can be completed. It is important to provide accurate information regarding your current mortgage. This will enable the calculator to deduct the balance of your existing mortgage from the value of your property to determine the available equity.

You may also be asked questions about your health and medical history. This is because some providers have enhanced schemes available for those with a terminal illness or history of poor health. They will base their calculations on an impaired life expectancy and you may be able to obtain a greater amount of equity release. Generally, with this type of scheme a person with a terminal illness could be offered a significantly higher amount of equity release sum when compared with someone with a similar property and of the same age but in good general health. It is important to answer the questions regarding your health as accurately as possible, as unlike other financial products which may penalise you for a history of ill health, you may actually benefit from a higher amount of equity release.

When considering equity release, online equity release calculators can provide an essential research tool. They can assist you with the information needed to decide whether or not you should proceed with an application. However, it is important to consult professional specialist advice before making any final decisions. This will enable you to move forward, confident that it is the right decision for your circumstances.