Equity Release

How to Use the Equity Release Calculator to Determine Your Financial Standing

In the 21st Century of technology, most people just want to find ways that make their lives more comfortable. Thus, companies have gone to manufacture robotic vacuum cleaners to help you make your home spotless. There’s the delivery of products, techniques and services through the internet and the most outstanding inventions of all, cryptocurrency1 – a service that allows you to not only make payments but also trade.

With the Global Cryptocurrency Market industry being valued at more than €294 million, it’s no wonder that everyone is rushing to have a piece of the pie. However, most people don’t have the funds required to make a Bitcoin2 investment. That’s where equity release comes in, and with the equity release calculator being accessible to you, you can now figure out how much equity you’re eligible for.

Breaking Down Equity Release Products

If you have no idea what this financial product is, then get ready to discover your financial knight in shining armour. The plan is meant for retirees aged 55+ and homeowners within the remits of the UK and owns an estate worth more than €70,00. What’s incredible about this plan, other than allowing you to make life-changing investments is that you don’t have to repay the loan until you die or move into residential care. It also offers you the financial freedom to use the cash as you wish – meaning you can make your Bitcoin investment, help your family settle any debts, pay off your outstanding mortgage and also go on vacation.

Equity release3 schemes also come in twos. You can either choose between the lifetime mortgage plan or the home reversion plan. It all depends on your circumstances and what you need the cash for. The lifetime mortgage allows you to unlock the equity tied up in your property, and you don’t have to make any monthly repayments to the mortgage until you pass on or move into residential care. At the end of the loan, your plan provider will put the house up for sale. The sale proceeds will go to the plan provider – they’ll take the loan amount plus all the interests accrued overtime. Any remaining proceeds will go to your heirs.

The home reversion plan, on the other hand, involves selling a part or all of your property to the lender. So, when you breathe your last breath, the plan provider will put up your home for sale. The lender will then take up his share of the estate, and the balance will be given to your family, per the law – the rightful heir will get the proceeds. With this plan, unlike the lifetime mortgage, you don’t pay any interests, and you have to be aged 60 and above to take it out.

The plan also allows you to reside in your home as long as you want and you can even move houses, as long as the home you’re moving to meets the lender’s requirements. The home equity release plans are also safeguarded since they’re regulated by the Financial Conduct Authority4 and governed by the Equity Release Council5. So, you don’t have to be worried about being duped or paying more than the value of your home since the no negative equity guarantee6 will protect you.

Thus, if you want to invest in cryptocurrency, a farm, a retail business or any other trading options, taking out the equity release plan is your best bet! You take out money to invest and invest in getting even more money. Which other mortgage plans would allow you to do this? So, hurry up and take your equity release plan today!