All posts tagged About Equity Release

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.