Reverse Mortgage Calculator
Reverse Mortgage Calculator
If you’re wondering how much cash you could release with a reverse mortgage, you’ve come to the right place!
Our accurate reverse mortgage calculator will help you see if a reverse mortgage could be the key to your retirement dreams.
• The ins and outs of reverse mortgages.
• If there’s a difference between a reverse mortgage and a lifetime mortgage.
• How our reverse mortgage calculator works.
• The importance of using a reverse mortgage calculator.
EveryInvestor is dedicated to aiding you in discovering the essential information to help you maximise your retirement income.
Therefore, we’ve spent countless hours working on our professional calculator tools.
Now, let’s take a look at what you must know about reverse mortgage calculators!
Before You Start Reading….
Let’s See How Much You Can Release 👇
An Introduction to Reverse Mortgage Calculators
If you’ve never heard of a reverse mortgage, fear not!
It’s a term that’s more commonly used in Canada, USA, and Australia, and is a synonym for a lifetime mortgage.
With a reverse mortgage, there are no repayments required during the course of your life.
Instead, the loan and compound interest1 is repaid, usually through the sale of your home, when you die or move to a facility for long-term care.
Our reverse mortgage calculator for 2022 is designed to give you an estimate of the maximum amount of cash you could be entitled to unlock.
Reverse Mortgages Explained
With a reverse mortgage, your property is the collateral2 against your loan, so your lender will do a detailed valuation of the estate.
This is for the lender to ensure that their investment is protected when it’s time to sell your home.
Luckily, through the Equity Release Council’s ‘no negative equity guarantee’,
Your family will never pay more than what they get from the sale of your property, even if it’s less than the total amount owed. Any additional debt will be written off.
Is a Reverse Mortgage for Pensioners?
No, reverse mortgages are not only for pensioners but they are designed for later life.
Any homeowner aged 55 and above may qualify for a reverse mortgage plan, whether retired or not.
While you can use the money in any way you wish, if you do have an income, it might be best to wait until retirement before accessing the money in your home.
Your best bet is to contact a whole market financial adviser who will help you plot out your financial future.
Who Qualifies for a Reverse Mortgage?
The basic qualification criteria for a reverse mortgage is you must own your home in the UK valued at least at £70,000, the youngest homeowner needs to be aged 55, and you must have a small or no mortgage left.
Furthermore, the property must be your primary residence where you hold occupancy for at least 6 months a year.
Further qualification criteria will be lender dependent. What could be considered:
- The type of property you own.
- The material used for the build.
- If you have additional residents living at home.
- The location of your property.
How Does a Reverse Mortgage Calculator Work?
A reverse mortgage calculator works by taking basic information about you and your home and analysing the potential maximum equity you can unlock from your home.
The amount of equity you can unlock is calculated using:
- Your age
- Your property’s value
Furthermore, some lenders also look at your health condition.
While the calculator will give an estimate based on the property value you enter, the actual value will be determined by a surveyor3 during a detailed property valuation.
How to Use Our FREE Reverse Mortgage Calculator
Step 1: Selected your property value and click ‘start calculator’.
Step 2: Enter your age and click ‘next’.
Step 3: To receive your results, enter your essential details by clicking ‘next’ and then ‘submit info’.
Step 4: We will get in touch with your results.
It’s that simple and totally free and the whole process takes just 8 seconds.
Try our reverse mortgage calculator right now!
Got Questions? Check These Out!
How Much Money Do You Get From A Reverse Mortgage?
You can usually get between 20% and 65% of your property with a reverse mortgage. This is dependent on your age, property value, and health condition.
Are Reverse Mortgages Available in the UK?
Yes, reverse mortgages are available in the UK, but they are referred to as lifetime mortgages.
What's the Downside of A Reverse Mortgage?
The biggest downside of a reverse mortgage is that you won’t benefit from the full value of your property.
Supplement your retirement income with a reverse mortgage!
Now that you know how much cash is tied into your home, get in touch with a financial adviser who can give you whole market advice.
They’ll help you determine if you qualify, talk you through your alternatives, and help you find the perfect plan for your and your family’s needs.
How Much Can You Release?
Use the FREE Calculator Below 👇
Editorial Note: This content has been independently collected by the EveryInvestor advisor team and is offered on a non-advised basis. EveryInvestor may earn a commission on sales made from partner links on this page, but that doesn’t affect our editors’ opinions or evaluations. Learn more about our editorial guidelines.