Tag Archives: Equity Release Schemes

Equity Release

Does the Saga Equity Release Calculator Show Impartiality?

Plenty of websites offer calculators, information, and other tools to help consumers seeking equity release products. Yet, these websites work in different ways. For example Saga does not provide equity release schemes. They utilise Just Retirement for equity release products. Saga has built their business on offering annuity products Just Retirement actually creates. To understand the impartiality of the Saga equity release calculator you first have to understand more about the company.

Saga and Just Retirement Partnership
The Financial Service Authority (FSA) recently became the Financial Conduct Authority (FCA) and with this a new overhaul of annuities has occurred. Saga has a strong business partnership with Just Retirement on the basis of helping the company sell their annuity based equity release schemes to retirees 55 years or older. Saga may have to re-evaluate their partnership due to government changes or wait to see if Just Retirement will make changes to remain in the equity release industry.

Saga is going to be directly affected if sales of annuity based products begin to fall, after all they are selling these products as an intermediary between consumers and Just Retirement. Saga, for their ability to generate business on their site and help Just Retirement is paid fees. These fees are paid by Just Retirement, so the relationship is not truly an independent one, but more of a symbiotic relationship.

Saga also has information regarding interest rates as they apply to more than Just Retirement products. For example the Aviva Flexible Lifetime Mortgage plan is examined by Saga. The plan Saga offers is not considered as competitive as Aviva interest rates, which are found on sites like Equity Release Supermarket and other top equity release intermediaries. Basically Aviva information might be on Saga’s site, but just as a comparison.

Other Details to Know about the Situation
Saga’s partnership with Just Retirement Solutions operates within a tied panel basis. It is independent as other brokers. There is even the option of going off panel when necessary; however, this is not always offered right away. In fact consumers have to understand how the company works before they can request independent information.

How it Ties in
With the Saga equity release calculator values are going to assess Just Retirement plans. The information on the site is going to be about the annuity plans Just Retirement has. Yet, when you consider the differences of another company and what the Aviva equity release calculator may show, you will see different results. Aviva currently offers an APR as low as 5.63%, while Saga equity release schemes are over 6%.

One of the things Saga does to get your interest is to lower costs initially such as the upfront fees to obtain the loan. Remember you are obtaining a lifetime mortgage with an annuity from Just Retirement. There is a potential to save £500 in upfront costs, but this big savings is not always going to translate throughout the rest of the lifetime mortgage.

APR is an interest rate that will add up over the years. It compounds onto the loan and principle balance. Even if you have an annuity that is working to save up money for the eventual repayment is the higher interest rate on the product itself really going to help you save enough?

The answer is not always. Going with a big savings in the beginning or having an annuity structure is not always better than the low interest rate particularly if the rate is fixed at the lower rate.

Using Tools to Discern the Truth
You should not ignore the information you can find with both the Aviva and Saga calculators. Instead, use both tools to get results. By examining the different companies and their products it is possible to make a sound decision. Of course, you want to have more information than just the calculator to base your decision on. The calculator has to be used as an estimator of potentials. It is a guide that provides you information about specific products or if you find an impartial one, a calculator that provides information on several types of equity release.

Due diligence and speaking with an independent broker with no ties to any company is going to help you find the one product that is best suited for you. As you consider using the Saga equity release calculator keep in mind the above information, gain your calculations to use as a guide, and remember to speak with an expert then make a decision.

Equity Release

Can London Commuters Influence the Maximum Equity Release?

London commuters have their pulse on the city in more ways than one. Finding great schools, having conveniences one desires, and simple transport needs have all influenced how London moves the rest of the country forward. Add in the property prices which have started to increase significantly in the last years and commuters are starting to increase UK housing prices. It takes a little longer for country areas to see the effect, but it is happening. Some generations are working at home for two days and then going into London the rest of the time. For retirees or those over 55, something else entirely different is going on which starts with the use of London online equity release calculator.

The Over 55s are Pushing for Growth
Buying a second property in the country is just one thing that Londoners over the age of 55 are doing. They want to have a rural home for relaxation, but still have their finger on the pulse of London. London commuters getting closer to retirement are also looking at the possibility of having enough money to spend in retirement and whether they need to move house using such London equity release schemes. As housing prices in London spike, many retirees looking to rest in the less busy sections of Greater London know that now is the time to sell. In selling, they can gain equity from their home and buy something a little quieter yet still next to the city they love. Once that money is used, an option is to release equity from their home.

Several reasons can be used for why growth of the housing market is being pushed not only in London, but outside of it. One main factor with regard to commuters is that they are hoping to increase their equity release as a means of taking advantage of better London real estate, which helps push the growth of the maximum equity release.

On the flip side when housing prices increase in areas like London and Greater London there is a potential to tap into more equity in the existing home. Rather than moving house this is the main focus. Commuters wish to have more income for when they go into the city. In order to gain this income they turn to equity release schemes. As bringing wealth into the economy is mainly through equity releases right now this pushes for the growth of housing values. As housing market values increase the maximum equity release amount increases as well.

Calculating the Potential
With a website specifically tailored towards London themes and aided and abetted by an equity release calculator, it is possible for anyone over 55 to start calculating their chances of increasing their maximum equity release. The online calculator is going to take the value of your home, your potential life expectancy based on current age and health, and determine the maximum lump sum you can take out in a lifetime mortgage.

Only a certain percentage of equity can be released from a property with these products. There is no repayment of capital sum during the lifetime of the owner. Instead, it is the beneficiary that will have to make arrangements for the repayment. This is because no monthly payment is needed. Of course, if the homeowner moves out of the home then the loan has to be repaid then. But on the assumption a London homeowner decides to pass away at home, the compounded fixed interest rate adds onto the capital sum borrowed. This can never be greater than the housing market value.

As the London housing market is increasing in value right now, it means there is a potential to tap into more equity from the home. With Londoners calculating potential lump sums it helps push the value even higher in several London areas, thus helping the entire UK.

How are Homeowners Using this Money?
Already it has been discussed that other properties might be purchased which helps the growth of the property market. It is not the only reason, though. For some Londoners, getting more equity released from their home is about obtaining a lump sum they can gift to their children. This gift is then used for a down payment on a property perhaps outside or near London. Again over 55s are helping the housing market improve even indirectly by taking out an equity release mortgage and allowing their children to use the proceeds from it.

Whether you decide to use your equity release for this matter or you hope to increase the equity release maximum, take advantage of the information you can learn via the www.EnhancedLifetimeMortgage.co.uk website.

Equity Release

The Most Popular Lifetime Mortgage Scheme

Features of lifetime mortgages have evolved over the recent past and a lot of changes have taken place. Equity release schemes provide a number of benefits that enable you to take advantage of your home value. An example is the ability to repay the mortgage without fear of penalty payments. Another is the option of saving a portion of your home without selling it or using the equity in it to provide an inheritance. Other schemes like the drawdown lifetime mortgage offer you away to take out only the money you need and the ability to take more later should your needs increase.

The drawdown lifetime mortgage is the most popular type of equity release scheme in 2012. This is due to the flexibility of the schemes as funds can be taken on a drip basis from an overall reserve facility. What normally happens is that interest is calculated on the basis of the initial amount borrowed and it compounds as time goes by. Therefore, if a huge lump sum is taken from the beginning, interest charges will be high and will remain on the upward scale.

The drawdown plan has a host of benefits in lifetime mortgage but the most significant one is that they provide a pre-contract agreement whereby a limit is put on charges according to the value of your property. In most equity release plans the lender comes up with the amount to be deducted from the start, and normally it is somewhere around £10,000 and £25,000. The drawdown balance is available for the duration of the term, but terms are subject to change if the market changes.

Today there are so many lenders in different forms who have come up with customised terms in order to lure clients. The borrower of the mortgage must be clear with the terms beforehand because if there is one tricky field in financing, it has to be mortgage and loans. People often get themselves in situations they can barely get out of, which can give you a lot of headaches.

When you have a lot of information it can be best to look at a list of advantages and disadvantages. You also have to realise that drawdown lifetime mortgage plans can vary from provider to provider thus this generalised information can improve upon speaking with an agent or turn you off the idea altogether. It depends on who you speak with and how many agents you speak with. Always get three opinions when it comes to your financial planning regarding your retirement and lifetime mortgages.

Advantages of Drawdown Mortgages
1. You can be 55 and apply for this mortgage.
2. You can decide how much you withdraw on a monthly, quarterly, or annual basis. Typically the provider will require an initial lump sum at a certain amount, then you can take as much or as little as you want from the account. Obviously you cannot take more than the account has available.
3. Every 3 to 5 years you may need to reassess your drawdown mortgage to see if you should increase the amount of equity you use. This is an option with most providers.
4. The cash you receive is tax free.
5. You can use the cash as you wish for expenses, house repairs, emergencies, holidays or other special things you wish in your retirement.
6. You do not pay interest or any principle balance until the end of your life or you move to a care facility.
7. You only pay interest on the amount of money you withdrew from the account, not the funds available to you in the account.

Disadvantages of Drawdown
1. Drawdown lifetime mortgage is a mortgage.
2. You will owe money at the end of the mortgage including any interest that has accrued.
3. Most providers require the house to be sold within 12 months for their repayment or immediate repayment if your beneficiaries do not wish to sell the home.
4. It can be difficult to leave an inheritance behind if the housing value drops into negative equity.
One important clause to write in your contract is a negative equity clause. The clause should state you or your beneficiaries are not liable if your home is in negative equity at the time of your death or removal to a care facility.

To be safe with your lifetime mortgage plan, shop around for the most suitable choice. You can gather information from the internet or try to seek professional advice from a mortgage expert. This will save you a lot of headaches after your retirement.

Equity Release

Where to Find an Accurate UK Equity Release Calculator

The development and expansion of the internet has made it far easier to access financial products and services. Consumers of today can easily type a question into a search engine and receive pages and pages of information, with sources readily available to access instantly. When considering financing or re-financing, there are quite literally hundreds of sites to source the information that you need to answer your question. This is especially the case in the equity release marketplace. With the plethora of different equity release calculator, UK residents can explore all the options available to them. There are even equity release supermarket calculators which allow comparisons between different products and services.

Using an Equity Release Calculator

When using an equity release calculator, UK residents can quickly determine their eligibility for equity release and the amount of release possible. These online tools can deliver instant results which are accurate enough to be relied upon when moving forward. By supplying a few basic details such as your age, gender, totals of any mortgages or secured finance currently in place and the value of your home, the calculator will assess your eligibility against the set criteria and determine the amount of release possible.

Some of the more sophisticated tools such as the equity release supermarket calculators will also ask questions about the state of your health. This is because they have access to enhanced plans and schemes which offer additional release sums based on the impaired lifespan of the applicant due to poor health history, terminal condition or even habits such as smoking.

With a number of forms of equity release calculator, UK residents can also explore a number of different equity release options. Some calculators can only supply details based on a specific range of products. However, in depth models such as the Equity Release Supermarket Calculators will provide details on alternative schemes such as drawdown lifetime mortgages. A draw down lifetime mortgage allows the home owner to receive a smaller initial lump sum but have a draw down facility available to them. This allows for funds to be called down as and when they are needed. The main benefit to this type of scheme is that you would only begin to pay interest on funds when they are drawn down. This can save a great deal in interest charges in the long term and prevent you from losing your eligibility of means tested state assistance and benefits.

Tips for Finding an Accurate UK Equity Release Calculator

Finding an accurate equity release calculator UK, need not be stressful or difficult. There are a great number of accurate online equity release calculators. However, there are a number of tips to ensure that you find the best possible tools.

• Look for independence: Independent brokers have calculators which are linked to a great number of products in the equity release marketplace. For example, the Equity Release Supermarket calculators are not tied to a specific company or provider. They offer wider access to a larger range of schemes and plans including enhanced schemes and other types of lifetime mortgage. Calculators on company websites are limited by the product range offered by the specific company, which may not represent the best possible choice for you.
• Use more than one different calculator: With an equity release calculator, UK residents are not committed. They can use more than one different calculator and in fact are advised to do so. In order to be assured that you have gained an accurate insight into the marketplace, you should use several different calculators and compare the results.
• Be wary of providing personal contact information: Most calculators will allow people to use them anonymously without providing any contact information. Some may ask if you would like an adviser to contact you, but you should be wary of any calculator which will not permit you to use it unless you provide contact details. In a best case scenario you are likely to be badgered by sales calls or spam e-mails, but in a worst case scenario, you may make yourself vulnerable to internet fraud or cyber crime.

With an equity release calculator, UK residents can have a greater degree of control over their research of equity release schemes and solutions. The popularity of these tools has encouraged brokers and companies to develop more sophisticated tools such as the Equity Release Supermarket calculators. This ensures that people have a greater access to information which will allow them to make informed choices and decisions about their financial future and whether equity release is best suited to their needs.