Where can I find an Accurate Lifetime Mortgage Calculator?

There are two major questions most consumers have when they begin their search for financial products. First, they want to know what types of products are available for their situation. Second, they want to see how much money they can get because they already have an idea of how to spend it. No one goes seeking money just because lenders provide it. Rather, you already have something in mind, such as buying a new car, getting a second home for a holiday location, paying for your grandchildren’s university, clearing an old mortgage, or going on a special holiday. But can you afford the financial product that will make this happen and what product is available to help you? Lifetime mortgages and home reversions as equity releases will help, thus you need a lifetime mortgage calculator, too.

Home Equity Schemes
Several companies in the UK offer what they call home equity release schemes. They are talking about home reversion and lifetime mortgages in most cases, although equity can be obtained with a traditional mortgage too.

Home reversion is not actually a mortgage but a partial or full sale of your home. You sell a portion to live rent free in your home until death or until you decide to move. This money is yours and you do not owe it in the end. You will sell the rest of your home when you move or your beneficiaries will at your death.

With lifetime mortgages you take out a loan in either a lump sum or drawdown situation. This money is to be repaid at the end of the mortgage such as when you move or at your death. No interest and no principle balance is repaid until this time, unless you choose an interest only mortgage. There are also annuity business funding used for some equity release companies in order to provide you with such a product as a lifetime mortgage.

Each company on the market will have their own products. These products are specific to how the company obtains the funding to help you, thus you have to be aware of the companies, plus when they began their website in order to benefit from a lifetime mortgage calculator.

Finding Accurate Results is Essential
Online is the place to go for calculators of all sorts, but how often those calculators are updated is going to determine the accuracy of results, particularly with equity releases. Individual equity release companies provide you with calculators to help you determine if their products are useful to you. They are not independent calculators, which can mean the results will not translate to other products you may have found.

Many of these online calculators use an average APR, rather than letting you enter it on your own. They also look at specific parameters on age and home value the company has. Also, updating a website takes time and is not something all financial institutions will do. If you want a true reflection on the maximum amount of money you can release, it is better to check on a comparison website rather than with Pure Retirement, Aviva, or other equity release companies.

Pure Retirement just added drawdown lifetime mortgage and lump sum options based for the maximum end of the equity release market. The maximum may be offered to a certain age group, which could mean an inaccurate calculator for your situation.

This is why sourcing independent websites is important. Always check the site you are on to see when it was last updated. This can be found at the bottom with most pages. Others allow you to click on the web designer name to follow a link with update information.

Home Reversion Calculator
A home reversion calculator is another area that you can check, but be aware it is for home reversion only. Lifetime and home reversion tools are not going to produce the same results due to the differences in the products already discussed.

Concluding on Finding the Best Tool
Whether it is a new equity release lender, one that has been around, or an independent website, it is imperative you check for accuracy. Compare the tool with a couple of others you find online. Compare it to an independent site you know was recently updated. In this way you get accurate results and have a way to start looking for the financial product that will help you during retirement. The lifetime mortgage calculator is just a guideline for the maximum amount; therefore, the amount can change slightly after you start comparing products with brokers.