Lifetime Mortgage Calculator

Are You Looking for the Best Lifetime Mortgage Calculator in 2022?
Contributors: Nicola Date, Katherine Read. Edited by Rachel Wait & Reviewed by Francis Hui
Do You Want Access to a Lifetime Mortgage Calculator? Find Out How Interest Is Calculated & How Much Equity You Can Release. Read on to Learn More.

Before You Start Reading….

Let’s See How Much You Can Release 👇

 

Equity Release Calculator

Value of Your Home?

50000

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100% Secure & Fast

It’s VERY FAST, takes just 8 seconds

Do you need access to extra retirement income? 

Use our lifetime mortgage calculator today and find out just how much you could get.

A lifetime mortgage gives you access to the capital locked up in your home as a tax-free lump sum; it might be the key to making your retirement comfortable. 

Through this article, we’ll help you discover:

  • What’s a lifetime mortgage?
  • Types of lifetime mortgages.
  • Why use a lifetime mortgage calculator?

Our industry experts have worked tirelessly to bring a market-leading lifetime mortgage calculator that’s accurate and simple to use.

Go ahead and try it!

As experts in our field, we discuss the following in this article:

    What’s a Lifetime Mortgage?

    A lifetime mortgage is a loan that’s secured against your home; it enables you to live in your home while maintaining 100% ownership.

    It does attract interest which is compounded and repaid when your home is sold if you pass on or move into permanent care. 

    There are no mandatory capital or interest repayments, although you can make voluntary payments if you wish.

    How Is a Lifetime Mortgage Calculated?

    A lifetime mortgage is calculated based on the youngest homeowner’s age and your property value. 

    Using the youngest homeowners’ age, the lender calculates a loan to value (LTV); this is a percentage value of your home’s worth that can be released using a lifetime mortgage.

    The younger you are, the lower the percentage of your home’s equity you can access will be.

    How Is Interest Calculated on a Lifetime Mortgage?

    Interest on a lifetime mortgage is calculated based on a fixed interest rate.

    The interest is charged on a compound1 basis, meaning that interest is added to the capital balance, and then interest is charged on that amount.

    Interest is calculated daily at the fixed agreed interest rate; this is usually added to the outstanding loan value annually; each lender’s process will differ.

    This means that you pay interest on interest, which makes a lifetime mortgage potentially expensive if you don’t make any interest repayments.

    Before You Continue Reading….

    Let’s See How Much You Can Release 👇

     

    Equity Release Calculator

    Value of Your Home?

    50000

    Drag me

    100% Secure & Fast

    It’s VERY FAST, takes just 8 seconds

    What are the Benefits of Using a Lifetime Mortgage Calculator?

    The benefits of using a lifetime mortgage calculator are that you’ll have a reasonable estimate of the amount of capital you can unlock from your home.

    A lifetime mortgage calculator can assist you in the following ways:

    • With an estimate on hand, you can have a meaningful discussion with your financial adviser2 when it comes to applying for a lifetime mortgage.
    • You can use it to compare the effect of different interest rates on the final loan amount you’ll owe.
    • You can compile a comparison of what each potential provider might be willing to lend you.

    Types of Lifetime Mortgages

    The types of lifetime mortgages available are lump-sum lifetime mortgages and drawdown lifetime mortgages.

    Here we look into these.

    Lump-Sum Lifetime Mortgages

    A lump-sum lifetime mortgage allows you to withdraw equity from your home in one tax-free lump sum. 

    A lump-sum lifetime mortgage attracts interest on the total amount borrowed and paid out.

    This will be settled one day when you pass on or move into permanent care and your home is sold.

    There are no mandatory repayments required, but you can make them voluntarily.

    Drawdown Lifetime Mortgages

    A drawdown lifetime mortgage allows you to release an initial lump sum while establishing a reserve account where you can withdraw additional cash as and when you need it.

    The benefit of a drawdown lifetime mortgage is that you only pay interest on the money withdrawn and not on the full amount.

    Common Questions

    Is a Lifetime Mortgage Right for Me?

    Is a Lifetime Mortgage Calculator Easy to Use?

    How Do You Use a Lifetime Mortgage Calculator?

    How Much Can I Release with a Lifetime Mortgage?

    What Are the Benefits of Using a Lifetime Mortgage Calculator?

    In Conclusion

    Always contact your financial adviser to assist you with any financial decisions.

    There’s never been a better time to free up some tax-free cash with a lifetime mortgage.

    With the Equity Release Council3 regulating and overseeing the industry and low interest rates, you should use our lifetime mortgage calculator today.

    How Much Can You Release?

    Use the FREE Calculator Below 👇

     

    Equity Release Calculator

    Value of Your Home?

    50000

    Drag me

    100% Secure & Fast

    It’s VERY FAST, takes just 8 seconds