What Is an Equity Release Calculator?

An equity release calculator gives you an indication of how much money you could unlock from your home with an equity release loan. Our calendar will help you to plan your retirement.

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The Money Savings Advice Equity Release calculator is an estimate based on the information you have provided.  A full Equity Release quote can be provided by one of our hand-picked Equity Release brokers who will also help with a full affordability assessment.

Using our equity release calculator couldn’t be easier. If you’re looking into equity release as a way of freeing up some funds for you to enjoy in your retirement, our calculator can give you an estimate of just how much you could earn.

Just enter your age and the approximate value of your home, along with the outstanding balance of mortgage left to pay. Hit calculate, and we’ll work out how much you could enjoy

Remember that the older you are, the more money you could get. So, you can use the calculator to plan ahead if you’re working out when would be best for you to take out an equity release plan.

Also, be aware that our calculator can only give an estimate. The actual amount will depend on a number of factors including your health, the area in which you live, and the type of equity release plan you opt for. If you want to know more and get a more exact quote, we’ve got dedicated financial partners who can help you.

What is Equity Release?

Equity release is a loan that you take out against your home. You can unlock the equity you’ve already got tied up in your property from the mortgage payments you’ve made so far in your life. But rather than repay the loan immediately, it’s instead repaid after your death from your estate – either by selling your home or from your other assets.

As you aren’t making immediate repayments, your interest rate will compound, and you could end up owing a lot more than you borrowed. That’s why you need to make sure you consider your options and get the best deal possible. Equity release is a great option for anyone in retirement looking to free up essential funds to pay for care or some money to enjoy life, whether that’s home renovations or that dream holiday you’ve always wanted to take.

You can choose to take the whole lump sum immediately or use it as a drawdown account, making withdrawals as and when you need them. You can repay your equity release loan early if you change your mind, but there will be additional charges involved to make up for the interest you would no longer be accruing.

Who Is Eligible for Equity Release?

The main three criteria in order to be eligible for equity release are that you must be aged 55 or over, you must own your own home (though you don’t necessarily need to have paid off the mortgage), and your property must be worth at least £70,000.

There is more too it though. Some types of equity release will require a higher age limit of at least 60, with home reversion plans requiring you to be 65 years old. There will also usually be an upper age limit too, often around 90 years old, to prevent customers taking out equity release plans when they aren’t sound of mind.

The older you are, the more money you’ll be able to claim. So use our calculator to work out when would be the best time for you to take equity release.

Be aware that, if you’re applying for a joint equity release plan on a home you own with your partner, the lower age limit applies to the younger partner.

Also, the location and condition of your home is likely to be taken into consideration – if your home isn’t well maintained, or it’s in an area where rapid commercial expansion is happening, then your home may not retain its value. If it doesn’t, then the lender can’t guarantee they’ll get a return on their loan, and so may reject you.

Remember, our calculator above is an estimate. Your eligibility will dictate which plans you can take out and how much you will get.

Reasons to Take Equity Release

There are many reasons people choose equity release in retirement. Your home has a lot of money tied up in it that you may feel you’re entitled to enjoy. One of the most popular reasons is to clear other debts. As you enter retirement, your income is going to drop.

If you have financial commitments such as personal loans and credit cards, meeting the minimum payments every month may get trickier. Equity release can clear those debts and make it easier for you to enjoy money during your retirement years.

Some people use equity release as a way to buy a second home, often as a holiday property that has long been dreamt of. Because you don’t need to repay the loan immediately, you can use the Equity in your main home to make up a large portion of the new property, leaving you with a minimal mortgage to repay. If you’ve dreamed of that coastal cottage, equity release can make it happen.

Or you may just wish to remodel or renovate your current home. A cash lump sum can be the ticket to all those repairs and decorator fees that you’ve been waiting for, giving your home the makeover it needs to be your comforting space where you can peacefully enjoy your hard-earned retirement.

Need More Help?

Still, need a little more help with equity release? Don’t worry. We’ve got a comprehensive list of guides on everything related to equity release for you to read here on the site. This includes more detail on eligibility and how equity release works, to the costs involved, the pros and cons, information on early repayments, mis-sold equity release plans and more.

Every question you could have will be answered within our guides to make everything as simple as possible.

How Can Money Savings Advice Help You With Releasing Equity?

Here at Money Savings Advice, we have partnered with some of the UK’s leading Equity Release brokers. They have already helped thousands of people get the best Equity Release deal and they can do the same for you.

Choosing an independent adviser means they won’t recommend a scheme unless they are sure it is in your best interests. Their advice is also regulated by the FCA, which gives you an additional layer of protection.

If you would like to speak to one of these brokers who can provide you with a ‘whole market quote’ then click on the below and answer the very simple questions.