Life Mortgage Calculator – The Telegraph
LIfetime mortgages continue to grow in popularity among UK homeowners weighing their financial options, according to Equity Release Council statistics for the first quarter of 2022.
In fact, around one in four loans taken out by Britons over 55 is now a lifetime mortgage, rising to three in four for those over 65.
The free lifetime mortgage calculator on this page can help you start your own research.
Provided by Responsible Equity Release via the Telegraph Media Group Equity Release service, you can receive your estimate in seconds. Simply enter your age and the estimated value of your home, and the Lifetime Mortgage Calculator will show you in minutes how much you could borrow. You will also receive a free copy of The Telegraph Media Group’s guide to release equity.
Use the life mortgage calculator now
What is a life mortgage?
A lifetime mortgage is a type of capital release product, designed to allow homeowners aged 55 and over to release cash from their home. Like a traditional mortgage, a life mortgage is secured on your property. It differs, however, in that there is no obligation for you to make monthly payments.
How do you pay off a lifetime mortgage?
If you choose not to make monthly payments, interest on your life mortgage will accrue on a compounded basis.
The full amount, plus interest, only needs to be repaid when the last owner dies or goes into permanent long-term care. Usually this will be achieved with the sale of the house.
Use the life mortgage calculator
How to use the calculator?
The Lifetime Mortgage Calculator on this page can give you an estimate of how much tax-free money you could have in a matter of moments.
- Choose how to receive your guide and enter the estimated value of your property.
- On the next slide, enter your age and the details we need to send you your guide, either by email or post.
- The calculator will show you an estimate of the minimum and maximum amounts available to you.
If you choose to provide your phone number, a Responsible Equity Release representative will also be in touch. Responsible provides an award-winning lifetime mortgage service for those who wish to progress their application after using the calculator on this page.
Am I eligible for a life mortgage?
The only requirements to use the calculator are:
- The youngest owner must be 55 or older.
- The property you want to borrow against must also be worth at least £70,000.
An advisor will be in the best position to inform you of all the eligibility criteria for applying for a life loan, but two key considerations to take into account are:
- Are you mortgage free?
- If not, will you be able to erase the existing mortgage at the end of the life mortgage? You can use the borrowed funds to achieve this.
- Do you intend to reside permanently in the house? Most lenders will stipulate that you must live in the house for at least six months of the year.
What should I take into account?
A lifetime mortgage is a type of capital release. This calculator works just like the Capital Release Calculator to give you an estimate of how much you could borrow, but an advisor can give you a more accurate idea of whether a lifetime mortgage will work for you.
Borrowing with a lifetime mortgage is a long-term decision, so it’s important to balance your current financial needs with your future desires. A fully qualified advisor is in the best position to assist you in this process.
They will explain the risks and available features of the product to you, along with a personalized illustration. This shows exactly how the amount you owe will grow over time, allowing you to plan for the future effectively.
Because you are securing long-term debt on your home, the value of your estate will be reduced. Borrowing tax-free money with a lifetime mortgage could also affect your entitlement to means-tested benefits.
Find out more about the life mortgage
If you want to find out more about a lifetime mortgage, it’s easy to contact Responsible’s friendly information team via the calculator. Alternatively, you can phone the team directly or ask to be called back at a time that suits you.
Use the Lifetime Mortgage Calculator today or learn more about Telegraph Media Group’s Stock Release Service
The above article was created for Telegraph Financial Solutions, part of The Telegraph Media Group. For more information on Telegraph Financial Solutions, click here.
The Telegraph Equity Release service is provided by Responsible Equity Release. Responsible Equity Release is a trading style of Responsible Life Limited. Responsible Life Limited is authorized and regulated by the Financial Conduct Authority and is registered with the Financial Services Register (https://register.fca.org.uk/) under reference 610205.
Only if you choose to proceed and your case is complete will Responsible Life Limited charge an advisory fee, currently not exceeding £1,690.