A Guide to UK Equity Release Calculators

Picking an online equity release calculator may seem like a lottery when there are so many available, especially as it could well determine the company you release equity with. The Reader’s Digest’s equity release experts offer this guide to equity release calculators.

Why use an online calculator?

If you are just curious about equity release, an online calculator will give you an idea of your eligibility for releasing equity from your home without having to talk to anyone first.

A well maintained calculator will produce a live and accurate calculation; however, a specialist adviser will factor in more personal details to give a more accurate figure.

What does an equity release calculator tell me?

You’ll be given a quick estimate of how much you could potentially release based on your age and property value. As you have to be over 55 to release equity from your home a calculator will not accept a lower age than this so if you are just curious and not yet 55, bear in mind that entering incorrect details will give an inaccurate result but you could still receive a free posted equity release guide. If you are able to see the interest rates available in your results as it will give you an idea of how much the plan will come to over time. Some bonus features on other calculators will also allow you to see the affects equity release may have on your estate over time and give an indication of future house price value based on current predictions.

If you are offered a free guide for completing the calculator then it’s likely to be worth your time just for the guide, after all any free advice and information about equity release from a reliable source is an advantage.

Whose Equity Release Calculator should I use?

You should look for signs that the company is a member of the Equity Release Council who are the industry body. This will mean their plans carry some inbuilt guarantees such as maintaining full ownership of your property, and never owing more than the value of your home.

In Summary:

  1. An equity release calculator is a good first step to learning about equity release.
  2. A good calculator will tell you how much you could potentially release, the interest rates available and the possible effects on your estate.
  3. Look for signs that the company is an Equity Release Council member for built in guarantees and safeguards.
  4. Look for the availability of a free equity release guide as free information from a reputable source will help you make the right decision for you.

Finally, you should seek professional advice from an experienced specialist trained in equity release such as the Reader’s Digest’s equity release experts. They can clearly explain the finer details of equity release with a free initial consultation and tailor advice to suit your personal circumstances.

Whether you're curious as to how much you can release, or you want to take the initial steps towards releasing equity, our handy calculator will give you the information you require.

You can also contact us on 0800 029 1233 to discuss your needs with a view to arranging a no obligation face-to-face home visit with one of our financial advisers.

The Flexible Lifetime Mortgage is by leading insurer Aviva and is only available through qualified financial advisers such as those working with the Reader’s Digest Equity Release Service.

*(Equity Release Council Lending Figures Q3 2010 – Q3 2015)

Reader's Digest Equity Release is a trading style of Responsible Life Limited. Responsible Life Limited is authorised and regulated by the Financial Conduct Authority and is entered on the Financial Services Register (http://www.fsa.gov.uk/register/home.do) under reference 610205. In using this website I give express consent to Responsible Life Limited to contact me on the details provided from time to time. Calls may be recorded for training and quality purposes. This is a Lifetime mortgage which may reduce the value of your estate and may affect your entitlement to state benefits. To understand the features and risks ask for a personalised illustration. Any information contained herein is a personal opinion of the author and should not be considered to be advice of any kind. Inheritance Tax planning is not regulated by the FCA. Think carefully before securing other debts against your home. By consolidating your debts into a mortgage you may be required to pay more over the entire term than you would with your existing debt. Only if you choose to proceed and your case completes will Responsible Life Limited charge an advice fee, currently not exceeding £1,295. Our adviser will talk through the setting up costs of a lifetime mortgage before you make any decision to proceed.