Lifetime Mortgage Calculator (Aug 2022)
- CALCULATE - discover the amount of tax free cash that's locked into your property.
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How Much Cash Can You Release With a Lifetime Mortgage?
Have You Been Wondering Which Equity Release Plan to Choose? We're Here to Help You Decide. Take a Look At the Lifetime Mortgage Calculator & Find Out If It's the Right Option for You.
Contributors: Nicola Date, Katherine Read. Edited by Rachel Wait & Reviewed by Francis Hui
Discover the amount of money you might be entitled to release with our FREE lifetime mortgage calculator!
Have you considered unlocking the equity from your property?
Perhaps a lifetime mortgage is the key to making all your retirement dreams come true.
As experts in our field, we discuss the following in this article:
As experts in the field, we’ve used the latest lifetime mortgage news and technology to create one of the most accurate calculators on the market.
Discover more RIGHT now!
What are the Benefits of Using a Lifetime Mortgage Calculator?
The benefit of using a lifetime mortgage calculator is that you get an estimate of what you could unlock.
Our lifetime mortgage calculator will help:
- Create a summary of how much equity there could be to unlock in your home in Aug 2022. However, if you indicate the market value of your home, then the calculator is a fantastic starting point.
- Give you an estimate to discuss with your financial adviser. This is a fantastic starting point as a comparison of how much various lenders offer you.
What’s a Lifetime Mortgage?
A lifetime mortgage is a loan you take with your estate being collateral that’s designed for older borrowers.
It allows you to live in your home and still retain 100% ownership, while benefiting from the equity tied into the property.
How Does a Lifetime Mortgage Work?
A lifetime mortgages work by a financial adviser helping homeowners over 55 to release the equity tied up in your asset.
The loan and all compound interest accumulated will then be settled by your heirs selling your home. This will generally take place when you die or you move out of your home and into a facility for long-term care.
You can unlock the cash in a drawdown, lump sum, or a combination of both.
The amount of money you can release will depend on:
- A property valuation
- Your age
- The condition of your health
The whole lifetime mortgage process takes an average of 12 weeks.
What Features Can I Expect with a Lifetime Mortgage?
The features you can expect with a lifetime mortgage are that you’ll retain 100% ownership of your property and that no repayments are due in your lifetime.
Further features:
- Low interest rates – As things currently stand, interest rates on lifetime mortgages have increased since March 2022, but they are still quite low.
- Retain 100% homeownership – Your home will stay in your name until it’s sold when you pass on or are moved out to a care home.
- Access tax-free cash – A lifetime mortgage is counted as a loan rather than a salary, therefore making it 100% tax-free.
- Stay in your home – With a lifetime mortgage, you can live in your beloved home until you die or make the choice to move into a long-term care home.
- Inheritance Protection guarantee – There is the option to set aside a portion of your estate as an inheritance for your beneficiaries.
- No negative equity guarantee – Even if property prices plummet, your family will not have to worry about your loan amount being higher than your final estate value.
How Do You Use a Lifetime Mortgage Calculator?
You use a lifetime mortgage calculator by entering the age of the youngest applicant, the property valuation, and a few other small details. It will all take you 8 seconds and you’ll be emailed the results.
Our fantastic lifetime mortgage calculator will require you to input:
- Your estate’s estimated value – properties must have a minimum value of £70,000. It means that a higher estate value will result in a higher lifetime mortgage calculation.
- The age of the youngest applicant – you have to be over the age of 55. If you’re, however, applying as a couple, then the amount you can borrow will be calculated based on the youngest homeowner who must also be aged 55 and above
- Your postcode, to understand where you reside – according to the ERC, you must live within the remits of the UK
These are the main criteria that lifetime mortgage companies use when determining the total amount you can borrow from your lifetime mortgage.
Some lifetime mortgage providers also require you to give details of your gender and current marital status.
In addition, you could be eligible for an enhanced lifetime mortgage if you struggle with medical conditions or are in poor health.
Common Questions
Why Use Our Equity Release Lifetime Mortgage Calculator?
How Can I Use a Lifetime Mortgage Calculator?
In Conclusion
Now has never been a better time to unlock cash through a lifetime mortgage.
Between the industry being regulated and overseen by the Equity Release Council and low interest rates, you should use our lifetime mortgage calculator before heading to your financial advisor.
Editorial Note: This content has been independently collected by the SovereignBoss team and is offered on a non-advised basis. SovereignBoss may earn a commission on sales made from partner links on this page, but that doesn’t affect our editors’ opinions or evaluations. Learn more about our editorial guidelines.
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