Enhanced Lifetime Mortgage Calculator

How Can I Calculate My Enhanced Lifetime Mortgage Amount?

Do you own a home that’s worth over £70,000 in the UK? Well, then you’re eligible to take out a Lifetime Mortgage plan. Read on to see how you can calculate your enhanced lifetime mortgage amount.

Are you retired and you have specific health issues that are worrying you? Do you own a home that’s worth over £70,000 in the UK? Well, then you’re eligible to take out a Lifetime Mortgage plan as a form of borrowing money for your health issues. Read on to see how you can calculate your enhanced lifetime mortgage amount.

Now, before we look into this fantastic calculator, let’s dive into enhanced lifetime mortgages.

Enhanced Lifetime Mortgage Plans

An enhanced lifetime mortgage plan, also known as an impaired lifetime mortgage plan, gives you a reasonable amount of money or low interest rates compared to the standard lifetime mortgage plans that are out there. This mortgage plan is a lifetime mortgage option which will offer you capital. This capital or equity is tied up, as a manner of speaking, in your home. It’s specifically created for people over the age of 55 that own a home.

Now:

There are some prerequisites to taking out such a lifetime mortgage plan. The property that you want to release equity from needs to be within the UK. Your property needs to be valued at £70,000 minimum.

Best of all!

This enhanced mortgage plan allows you to access more equity and cash if your health is low. At the same time, other lifetime mortgage plans don’t offer this fantastic benefit.

What does this mean for you?

Well, to qualify for this lifetime mortgage plan and you have health issues, listen up. As mentioned before, you’ll be eligible for the enhanced or an ill-health lifetime mortgage scheme if you suffer from pre-existing health conditions, you’re older than 55 and own a home worth more than £70,000 and in it’s the UK.

You might be wondering: What health conditions?

And how does this mortgage plan offer you more when you have health issues? The enhanced lifetime mortgage plan works according to the principle that your life expectancy is probably lowered due to your ill-health. Some of the medical conditions they cover are:

  • Diabetes
  • Parkinson’s disease
  • Multiple sclerosis
  • Cancer and in need of surgery, chemo or radiotherapy
  • High blood pressure
  • Angina, heart attacks, a stroke etc.
  • If you’re a tobacco or cigarette smoker

Simply put:

The weaker your health is, the more cash you’ll be allowed to unlock from your property, and the lower your interest rates will be.

It’s a well-known fact that health issues increase as one gets older, or that’s a fact for many people today. The stats are that at leastretired people suffer from high blood pressure or have had a severe heart attack. Therefore, funny enough, if you a history of medical illnesses you could be getting added benefits!

Let me tell you something:

It seems to be in your best interest to take out an equity release plan, such as the enhanced lifetime mortgage plan. You’ll gain access to more capital, and you’ll pay much less interest compared to other mortgage plans on the market.

Better yet:

Your provider can use the same backing as annuities, and they’ll use your life expectancy ratio to calculate how much cash you can get out of your equity release plan.

How Do Enhanced Lifetime Mortgages Work?

Providers offer these plans as a lump-sum or on a drawdown basis. They’re very similar to the enhanced annuity plans, but the enhanced lifetime mortgage plans give you a decent lump-sum. But also, the more serious your health history is, the more cash you’ll receive out of this plan. The catch behind the benefit is lower life expectancy, unfortunately.

Now:

You receive a cash lump sum from the get-go. This means a successful equity release from your property. You don’t need to make monthly repayments, and it’s tax-free money you unlock. The release equity has fixed duration interest rates which then compounds throughout the plan.

So, once the owner dies or needs permanent medical care, their provider will sell the property and the remaining funds will pay off the mortgage, the rest will go to close family or heirs of the estate.

What are the Qualification Criteria?

To qualify1 and apply for an enhanced lifetime mortgage plan, your health history comes into consideration. Due to life expectancy being a primary factor of these mortgage plans, your provider will offer you a reduced interest plan and more capital.

Now:

As mentioned above, providers offer a questionnaire on health and lifestyle where they consider:

  • If you’re a smoker
  • Your BMI, or body mass index2
  • Your blood pressure levels
  • Angina, heart attack, or strokes
  • Cancer
  • Multiple sclerosis or Parkinson’s disease
  • Diabetes
  • If you’ve retired earlier because of your ill health
  • Any prescription medication

After filling in their questionnaire, they’ll be able to tell you how much they’ll loan you. However, the list isn’t all-inclusive. So if you have any other disease, let your provider know, and they might be able to release even more capital for you.

Let’s come to the Enhanced Lifetime Mortgage Calculator…

The Enhanced Lifetime Mortgage Calculator

So, you’re seriously considering taking out this mortgage. Well, to give you that final nudge, we’ll tell how much you can loan from your provider.

Firstly, input the value of your home or property you want to release equity from. Secondly, input your age, name and contact details. That’s it! This calculation will give you a rough estimate of the amount you’ll be able to borrow or release from your home.

Next thing:

You’ll need to fill in the health questionnaire as mentioned above to calculate any further interest reductions and calculate added benefits if you qualify for the illness lifetime mortgage plan.

Common Questions

What’s An Enhanced Lifetime Mortgage Calculator?
How Can I Calculate My Enhanced Lifetime Mortgage Amount?
How Does The Enhanced Lifetime Mortgage Calculator Work?
Is the Enhanced Lifetime Mortgage Calculator Accurate?

In Conclusion

Releasing equity from your home is such a great way to get some extra cash! Better yet, ironically, you’ll be able to get more money out when you’re ill or suffer from health issues. You’ll also be charged less interest than healthy people.

If you have any further questions, feel free to ask us any time!

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