Equity Release

All You Need to Know About Equity Release Calculator UK

You just retired and are thinking about trying this online marketing affair. You’ve been in the electronics supply industry, and now you want to use your know-how to get some money on the side. However, your pension pot and other savings don’t meet the financial requirements, and now you’re looking for other alternatives. Well, lucky for you, the financial market has been enthusiastic about the newest kid on the block, equity release. The scheme allows homeowners aged 55+, those with estates worth more than €70,000 and those who reside within the remits of the UK to unlock the equity tied up in their homes. What’s more, the product features the equity release calculator1 UK which allows you to figure out how much capital you’re eligible for comfortably.

How Equity Release Works

Equity release mortgage also features two primary options, the lifetime mortgage plan and the home reversion plan. The lifetime mortgage plan allows you to unlock the value of your home, and you get to repay the mortgage loan when you pass on or move into permanent care. Upon the end of the loan term, you refund the loan amount plus the interests accrued. The plan provider outs up your home for sale, take the loan amount and interests accumulated, and the remaining proceeds go to your beneficiaries. The plan also enables you to live in your residence until you move out or die.

The home reversion plan, on the other hand, allows homeowners to unite the value of their home by selling a part or all of their estate to the plan provider. Unlike the lifetime mortgage schemes, the home eversion plan doesn’t have any accrued interests since you get the loan in one cash lump sum. At the end of the loan term, the lender sells your house and takes the sale proceeds of his share of ownership. The balance goes to your heirs. Moreover, the plan also allows you to ring-fence a part of your estate for your beneficiaries.

What makes this one of the most worthwhile financial plans you’ll ever take out is that it offers you the financial freedom to use the capital as you wish. It doesn’t demand you to write any business plans. It allows you to make all your dreams come true. Whether you want to go on vacation to Bali, Morocco or North America, this plan has your back. It also enables you to gift your kids now rather than later and gives you the joy of seeing your kids bringing up their children without any financial hassles.

The scheme also offers you the benefit of having a warranty. It can be the warranted fixed rates for life on the lifetime mortgage plan or on the ‘No negative equity guarantee2 scheme that ensures all the equity release plans adhere to Safe Home Income Plan (SHIP) regulations. Without this guarantee, you and your family can be subjected to paying the lender more than the initial value of the estate. It ensures that your beneficiaries can’t incur any debt over and above the property market value when you took out the loan. It also protects you from incurring any penalties when transferring homes.

Currently, plan providers and financial advisors are governed and authorized by the Equity Release Council3 and adhere to regulations set by the Financial Conduct Authority4. It’s also a law that all equity release companies should abide by the principles established by these two bodies. Therefore, if you want to make it big with online marketing, equity release plans might be your best bet. So go take out an equity release plan today!