Do you want to have some inheritance for your family once you pass away? But are you wondering if you’ve taken out equity that they’ll get it? Here’s a detailed guide on how you can calculate how much money you’ll have for an inheritance…
Shining a Light on What a Voluntary Repayment Lifetime Mortgage is
The voluntary repayment lifetime mortgage1 can help you to have an inheritance for your family in the future. This type of lifetime mortgage plan is a very new innovation within the equity release market. It’s also a very flexible plan because you can manage your equity release plan’s balance in the future.
This plan allows you to repay 15% maximum of your initial balance annually. This can happen at your own time, so whenever you have the money to repay it or whenever you get the time. It’s very flexible for your convenience.
If you’re able to make repayments (be it monthly, annual, or ad hoc payments) you’ll see a massive difference in the total amount you’ll have to pay when your plan ends.
What does this mean for you?
You need to know what amount you can save up with this type of equity release lifetime mortgage plan. How do you do that? Simply use the voluntary repayment calculator.
The Benefits of Taking Out Voluntary Repayment Plans
Voluntary repayment plans are beneficial for those who want to repay their mortgage early and save on interest. Voluntary repayment plans can be set up with your lender so you know the exact amount of money that will have to be paid back each month, which is really helpful if you’re trying to budget wisely in order to afford your monthly payments.
What Are The Drawbacks Of Taking Out A Voluntary Repayment Plan?
The drawback of taking out a voluntary repayment plan is that you may have to repay more interest than what would be paid back if the mortgage was fully repaid at maturity.
How Does The Voluntary Repayment Equity Release Calculator Work?
You want to make sure your heirs will get a decent inheritance. And now you want to find out how much money you’ll save through repayments. That’s what the Voluntary Repayment Equity Release Calculator is for! You can quickly get an idea of how much money you can save throughout your lifetime mortgage through voluntary payments. The calculator just needs a few details about you.
Let me tell you more.
The details you’ll need to input into the calculator are:
- How much money you’ll be loaning/releasing
- The interest rate of your chosen plan/mortgage
- How much you’ll repay annually (this amount can be up to 15% of your loan per year)
The calculator will then show you your results. In other words, it’ll show you how much you’ll save with a few scenarios: with making repayments and without making repayments. This way, you can see how much money you’ll save and how much you’ll need to repay to save that amount. And, the money you save will be or could be inherited by your family.
What Makes This So Exciting?
Voluntary repayment lifetime mortgages are a very new innovation, and they offer you fantastic flexibility. When you take out one of these mortgages, you’ll be able to manage your equity release plan balance in the future. Isn’t that great?
How can this be?
Well, because they let you pay back up to 15% of your initial annual balance. You can make repayments any time you can or want to.
What’s a Voluntary Repayment Calculator?
Well, this calculator is used to help you find out the amount of money you’ll get from your loan. That is the equity release mortgage voluntary repayment option.
What’s a Voluntary Repayment Lifetime Mortgage?
It’s a lifetime mortgage plan for those over the age of 55. It helps them to release any equity that’s in their property or estate. However, this voluntary repayment option lets you make repayments already after the first year. This is unlike other mortgage options. The voluntary repayment option enables you to secure your family’s inheritance and to level your financial balance.
The non-compulsory plan lets you make repayments of up to 15% of the original loan amount per year. Meaning, there won’t be rolled-up interest. However, it depends on your equity release provider.
How Do I Calculate the Amount I’ll Receive From My Voluntary Repayment Mortgage?
You can see the amount of money that you’ll be able to release if you use the voluntary repayment lifetime mortgage calculator. The calculator requires you to input your:
- Age of the youngest homeowner
- The estimated value of the estate
How Can I Use a Voluntary Repayment Calculator?
To see what amount you’ll be saving throughout your lifetime mortgage through the voluntary repayment plan, you’ll need input:
- The amount of money/capital you want to release
- The mortgage plan you’re considering interest rate
- The amount you’ll repay every year – even up to 15% of the cash amount you released
Your calculator will show your mortgage balance of various periods: without repayments and with repayments, depending on the percentage you put into the calculator.
So, you can easily see the money you’ll save by making repayments often.
Leaving behind an inheritance for your family is something most people want and plan to do. Over time however, you may find that it has become increasingly difficult to keep track of how much you will be leaving behind and this can bring about some anxiety. We believe that taking out an equity release plan will help alleviate some of that anxiety away.
If you’re seriously considering or wondering about taking out an equity release plan, this voluntary repayment calculator is an excellent tool to use. It’ll show you how much you’ll be able to save when you make repayments, and it’ll show you how much you’ll save without making repayments. You can then compare and assess if it’s a good option for you or not.