Free Equity Release Calculator

Lifetime Mortgage

The most popular type of equity release plan is a lifetime mortgage. A loan is secured against your home and in return, you can release a tax-free cash lump sum. The amount of tax-free cash you can release is based on your age and the value of your home. Interest is added throughout the lifetime of the loan on a compound basis as typically you will not be required to pay regular monthly repayments. However, you can pay the interest if you want to, the choice is yours. The amount of equity released plus the interest accrued will be repaid when you die or move into long-term care.

  • Payment plans – some plans allow you to pay some or all of the interest or repay some of the capital. This could substantially reduce the amount that is owed when the plan is repaid.
  • Protected plans – with some lifetime mortgages, it is possible to protect a percentage of the propertys future value to leave behind as an inheritance, giving you peace of mind in knowing your loved ones will be taken care of.

Find out how much you could release FREE Equity Release Calculator

Drawdown Lifetime Mortgage

Drawdown plans work in a similar way to standard lifetime mortgages but with the flexibility to ‘drawdown’ cash as and when you need it. You can take a smaller initial amount and then release cash over time. This can be more cost-effective as the interest is only added as and when the amounts are released so you could pay less interest over the course of the loan.

Enhanced Lifetime Mortgage

You could be entitled to release a larger amount of equity from your home if you have certain pre-existing health conditions or lifestyle choices (e.g. smoking). There are a large number of conditions that qualify including diabetes, heart conditions, cancer, etc. Our expert advisors can talk you through the questions to see if you qualify for an enhanced plan.

Inheritance Protection

You can guarantee an inheritance for your loved ones by ring-fencing a proportion of your property value with a protected Lifetime Mortgage.

This allows you to guarantee that a percentage of the future value of your home will be left to your family when the property is sold, regardless of how much interest accrues.

Advantages of Lifetime Mortgage

  • You still own and can continue to live in your own home
  • You will never owe more than the value of your home due to the Equity Release Council’s “no negative equity guarantee”. Retirement Solutions only recommend Lifetime Mortgages that are approved by the Equity Release Council.
  • You can access tax-free cash to spend as you wish
  • Typically, there are no regular monthly payments
  • You can get access to a drawdown facility to take cash as and when you need it

Disadvantages of Lifetime Mortgage

  • It will reduce the value of your estate which will result in reduced inheritance but there are options to guarantee an inheritance for your family with some plans
  • You may be subject to financial penalties if you end the lifetime mortgage plan early
  • It may affect your entitlement to state benefits
  • Interest is added to the lifetime mortgage but only paid back when you die or go into long term care

Find out how much you could release FREE Equity Release Calculator

Retirement Solutions only recommend mortgages that are approved by the Equity Release Council. Find out more about the safeguards – is equity release safe?

Equity release may involve a home reversion plan or lifetime mortgage which is secured against your property. To understand the features and risks; ask for a personalised illustration.

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0333 212 4333

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0333 212 4333