Remember, this is purely a guide to the maximum release available. Calls to freephone numbers are free from UK landlines and personal mobile phones. How much can I borrow? Lifetime Mortgage Calculator – find out more about equity release. Learn what they are. Find out the maximum you could borrow with a retirement interest only mortgage (RIO) – a residential mortgage, based on income that allows you to borrow on an open - ended basis into retirement. What mortgage can I afford? If you have a qualifying medical condition (or conditions) you can potentially borrow more. Find out how much money you could borrow when taking out a lifetime mortgage against your buy-to-let property. The maximum you can borrow will depend on your age and how much your property is worth. Learn more here. Each lifetime mortgage provider will have their own rules on how much their lifetime mortgage plan will release. With this type of mortgage there are no monthly payments to make every month, unless you choose to. The amount you can borrow for a mortgage depends on a number of factors. This depends on the purpose of your mortgage how much you are looking to borrow. Equity release can provide a lump sum to help you pay off an existing mortgage, fund home improvements, help family members onto the property or just enjoy retirement. 4.9 out of Read more, Drawdown facilities provide a cash reserve facility from which the homeowner can take cash withdrawals as and when required. Helps you understand how much money could be left as an inheritance when your lifetime mortgage ends. They work by giving homeowners access to the value, or ‘equity’, tied up in their property. The mortgage is only repayable if the applicants leave the property – so it genuinely can run ‘for life’. Here is how equity release works and if it is right for you. View Cookies Policy. Other providers often charge a percentage of the loan, meaning it's not always obvious how much you'll end up paying. Could I get this type of lifetime mortgage? It's secured against your home, which means you may lose your home if you can't keep up with the repayments. This could be a great alternative if you don’t want to move or downsize your property. Calls may be recorded and monitored for training purposes. The maximum lifetime mortgage facility is based upon the following criteria: Age of the youngest homeowner (minimum age is 55) Valuation of the property (minimum value is £70,000) Unlike the other loan policies, with the RIO, you only have to pay back the interest (not the mortgage itself) every month. This is because you’re borrowing over a much longer period of time with a mortgage. OneFamily Advice Limited is registered in England and Wales at 16-17 West Street, Brighton, BN1 2RL registered number 09188369 and is authorised and regulated by the Financial Conduct Authority. You can decide whether to take the cash as a lump sum or in several smaller chunks known as ‘drawdown.’ In both instances, the money released is tax-free and you are only ever charged interest on the amount you withdraw. Free to use, equity release calculator range. Equity Release Supermarket I want some flexibility later. But it is very expensive. can borrow is based on your personal circumstances and the type of lifetime mortgage that you have. *Open Monday to Thursday 9am - 6:30pm, Friday 9am - 5pm and Saturday 10am - 2pm. By providing your details you are giving us consent to contact you with Equity Release information. The capital and interest will not be repaid until the last remaining borrower either moves into long-term care or dies. A lifetime mortgage is a form of long-term borrowing. The lifetime mortgage scheme allows older borrowers, those aged 50, 55, 60 or above the state pension age 4, to borrow against the value of their residences. Advisers don’t charge you a fee for our mortgage advice - we can discuss any of your requirements free of charge. Learn more here. Lifetime mortgage. Interest only lifetime mortgages are available to anyone over age 55, owning their main residence and which must have a value of greater than £70,000. A lifetime mortgage is a type of equity release for borrowers aged between 55 and 95. To find out how much equity you could release, try our lifetime mortgage calculator, below. You can release money from your second or holiday home. In the same way that lifetime mortgage lenders vary the amount they are prepared to advance according to age, home reversion providers demand a bigger share of equity from younger borrowers and less from those that are older. Information and qualifying criteria on these lifetime mortgages here. The actual amount may wary depending on your individual circumstances. OneFamily Advice is the trading name of OneFamily Advice Limited. Generally cheaper when compared to most Lifetime Mortgages. The popularity of lifetime mortgages has increased substantially due to the flexible add-on features these plans can have built into them. The ‘core’ lifetime mortgage product is a basic roll-up plan, where a lump sum of tax-free cash is taken and typically no repayments are made. The Maximum Mortgage Calculator is most useful if you: Want to know exactly how much you can safely borrow from your mortgage lender; Are assessing your financial stability ahead of purchasing a property; Would like to compare the impact of different interest rates on the amount you can feasibly borrow. This mortgage example illustrates the monthly mortgage repayments on a £60,000.00 Mortgage with different repayment terms (years) to illustrate how changing the amount you pay each month can dramatically reduce the total amount of interest you pay on your mortgage as well as helping you to repay your mortgage over a shorter term and become mortgage free. To find out the actual release of equity to meet your needs, you should speak to your local Equity Release Supermarket adviser. A flexible cash reserve allows you to receive money in smaller amounts. You can unlock some of the equity in your home to pay off outstanding debt. A mortgage is a kind of loan you can use to help you buy property. The product information on this website is provided to help you make an informed decision about whether our products are right for you. Drawdown is the most popular lifetime mortgage. For an individual meeting to discuss how much equity release to borrow, contact the independent equity release specialists on 0800 471 4796 or email info@equityreleasecalculator.net First, the market value of your property. Income periods of between 10 - 25 years are available to meet your retirement income needs. Our lifestyle calculator will advise how much you could release. Payments from lifetime mortgages are flexible, too. You’ll usually only be able to borrow around four times your annual income. You can ask any questions and we’ll be able to let you know how much you could borrow. Health conditions can improve the offer from your lender. We will then calculate a rough estimate of how much you could borrow. Then we’ll work out how much you can borrow by comparing the amount you owe with the amount we could lend you if you were applying for a new lifetime mortgage. All you need to do is: Enter your annual income. Many factors determine the size of your equity release loan. Like most equity release schemes, the borrower will have an upper limit as to how much they can borrow based on their age & property value. Your home will be sold off to repay the loan when you die, enter long-term care or sell your home. Interest-only lifetime mortgages allow customers to repay the interest and maintain a level balance. Our friendly team of advisers are ready to help you, so why not spare a few minutes for a free initial consultation? However, as a guide, you could borrow between £10,000 and £800,000 if you live in the UK. Equity release is a big financial decision. Why is it important to have expert financial advice when taking out an equity release plan? Now you know what mortgage you can afford, you’ll quickly get an idea of whether you can afford to buy in a certain area. These type of lifetime mortgages are based on health and lifestyle factors and if you qualify, allow you to borrow more money, or offer a lower interest rate. The many alternative options available to you are discussed here. Find out how much money you could release with a drawdown lifetime mortgage. Equity release can provide a lump sum to help you pay off an existing mortgage, fund home improvements, help family members onto the property or just enjoy retirement. We’ll revalue your property before deciding how much we could lend you. Find out how much equity you could release with our Lifetime Mortgage Calculator. Enter the total annual income for your household followed by any unsecured debt or loans. Read the OneFamily Privacy Notice. More details here. These are lifetime mortgage schemes. You must be over 55 and a homeowner. There are several types of lifetime mortgage, all of which offer a range of features that can be tailored to meet your individual needs. As the name suggests, a lifetime mortgage works by lasting the course of a homeowner’s life. The loan amount will need to pay off any existing mortgage secured against the same property. Find out the maximum monthly income you could receive on this special type of lifetime mortgage. The flexible or drawdown facility is suitable if you want to take regular or occasional small amounts, perhaps to top up your income. Require monthly interest and or capital repayments. Having said that, many lifetime mortgages now offer the option of month-to-month payments, or voluntary repayments to control the interest accruing. How do I take out a lifetime mortgage? During this period, the property remains 100 per cent in your name, and you are free to live there until you die or move into flong-term care. Find out what you could potentially save by switching to a new plan. We’ve used our loan calculator to highlight some examples below: Borrowing £5,000 at an interest rate of 3% taken over 20 years, would cost you £1,630.88 in interest payments (that’s just on the extra borrowing) How much can I borrow. Learn more about the various types of later life lending plans available to homeowners over the age of 55. People often choose to spend the money across multiple things. Our Affordability Calculator and Monthly Mortgage Calculator tools are a great way to see how much you can borrow on your current earnings and then how much your new home will cost.. Lifetime mortgages are the most popular type of equity release plan. Unlike a conventional mortgage, which runs for a fixed term, a lifetime mortgage is designed to run for the rest of your life. Any proceeds left after repaying the lifetime mortgage provider is then passed onto your estate and distributed to your beneficiaries. Learn how these lifetime mortgages work. Your age does play an important part, because the older the youngest homeowner is, the greater the amount you can borrow. Learn what the other qualifying criteria are for equity release. Lump sum lifetime mortgages, as the name suggests, provide your money as a single, one-off amount and so this equity release plan could be ideal is you need to pay for large expenses such as home … There are protections and safeguards in place to ensure that equity release is safe. Find out how much equity you could release with our Lifetime Mortgage Calculator. Learn how they work. Learn how they work. Equity release providers have some strict lending criteria, such as a minimum age, which is normally 55 or 60. They are available to homeowners over the age of 55 and allow you to borrow a percentage of the value of your home. We calculate this based on a simple income multiple, but, in reality, it’s much more complex. So before you take one out, think carefully about whether a lifetime mortgage is the right move for you. If you'd like to know more, please ask your provider. Mortgages that continue into retirement based on income and affordability. To understand their features, benefits and risks, please contact Equity Release Supermarket for a no obligation, personalised, key facts illustration. Calls may be recorded and monitored for training purposes. OneFamily only supply advice on lifetime mortgage products. The second factor is the loan to value (LTV) ratio. When taking out a lifetime mortgage, you can choose to borrow a lump sum at the start or an initial lower loan amount with the option of a drawdown facility. This will probably be confirmed by a surveyor during the application process. With business mobiles the cost will depend on your phone provider. Bankrate.com provides a FREE mortgage qualifier calculator and other mortgage qualifier calculators to help consumers figure out how much money they can borrow. Already have a lifetime mortgage? At 65, you can normally borrow 25% to 30%, for example. There are two main factors to consider when remortgaging your home. Understand what they are and how much you can borrow. Find out how much money you could save your estate by making ad-hoc payments to reduce your final balance. Alternatively, book a time that works for you. You will need to pass the mortgage affordability checks to prove you can afford the interest only repayments. Lifetime mortgages are a specialised product designed for people in specific circumstances, and while they can be incredibly beneficial to the right person, they’re not for everyone. See if we could save you money with a new mortgage deal. Find out what’s involved and how long it takes. Interest typically compounds or ‘rolls up’ on a lifetime mortgage, and, thus, increases over time. Check that this type of mortgage will meet your needs if you want to move or sell your home or you want your family to inherit it. Health conditions could help you borrow more money. If you want the option to release more equity in the future, then an adviser can help you achieve this with a lifetime mortgage. Loans like this one, of course, come with some restrictions: usually, the minimum amount you can borrow is £20,000 while the maximum amount depends on a number of factors, including (but not limited to) your age, the value of your property and the status of your application. Learn all about equity release. Learn about how they work and the range of flexible plans available. For homeowners over 55 that want to access the money tied up in their home. How much can I borrow with a lifetime mortgage? Income plans allow you to supplement your retirement income. However, it can be an expensive way to borrow. Learn how you could borrow more, or lower your rate here. How much can I borrow with a home reversion plan? *Open Monday to Thursday 9am to 6:30pm, Friday 9am to 5pm and Saturday 10am to 2pm. 1286 reviews, We use cookies to offer the best website experience. What should you be thinking about before taking the next step? By continuing to use the site you are agreeing to our use of cookies. Lifetime mortgages that allow you to release tax-free cash as a single lump sum payment. What is the equity release process? How much can I borrow? Health and lifestyle of the homeowner(s). How much you can borrow depends on a number of factors, including your age, the type of property you own, and its value. Lump sum lifetime mortgages are a popular type of equity release plan. Income is one of the things mortgage providers will look at when deciding how much to lend you. In both instances, life expectancy is used to calculate the maximum release of equity, or what the lower interest rate will be. 5 by Feefo.com based on With OneFamily Advice, you only pay £750 - simple, straightforward and easy to budget for. We charge a simple fixed fee of £750 for our advice, no matter the size of the loan. The average mortgage lasts for more than 25 years – although they can range from six months to 40 years – during which you'll make monthly repayments. A Lifetime Mortgage is a special type of mortgage available to homeowners over 55 years of age. Switching your mortgage? Each lifetime mortgage provider will have their own rules on how much their lifetime mortgage plan will release. Lifetime mortgage where regular interest repayments help control the final balance to be repaid. Enter your guaranteed bonuses or overtime if you earn them. The above mortgage calculator lets you work out how much you can borrow. Mortgage borrowing calculator Calculate how much you could borrow as a mortgage for a property you’ll live in, based on your salary or other income, and your financial situation. Remember: A lifetime mortgage will reduce the value of your estate and it may affect your entitlement to means tested state benefits. The maximum lifetime mortgage facility is based upon the following criteria: Age of the youngest homeowner (minimum age is 55), Valuation of the property (minimum value is £70,000). RIO Mortgages continue into retirement based on income and affordability. With lump sum lifetime mortgages, the maximum you can borrow starts from 28% at age 55, rising upto around 58% of the value of your property (the LTV) – … Equity release may not be your only solution. Our calculators give you a rough idea of what you might be able to borrow from us to buy a home, and what your monthly and total mortgage payments could be for various types of mortgage. *Key Retirement - Market Monitor Half Year (July '19). A lifetime mortgage would allow you to borrow the money with no monthly repayments: the loan plus rolled-up interest is repaid when the plan comes to an end. Discover how much money you could release across all the available equity release plans. The maximum amount you can borrow will be determined by a number of factors, including your age and the value of your property. The figures are not guaranteed and do not constitute an offer to lend. Use our Lifetime Mortgage calculator to see how much you might be able to release from your property. Make ad-hoc repayments which can help manage your final balance to be repaid. When you apply for a mortgage, lenders calculate how much they’ll lend based on both your income and your outgoings – so the more you’re committed to spend each month, the less you can borrow. Learn how these lifetime mortgages work. You can borrow a minimum of £10,000 in your first release and then future lump sums of at least £2,000 each time. Learn how home reversion schemes work here. The resulting balance effectively grows (compounds) over time, but can be offset somewhat by the potentially increasing value of your property. It allows you to release a portion of your home’s equity as a tax-free cash lump sum by securing a loan against it. Here are some of the ways people spend the cash they release from their homes*. The percentage of your property you can borrow against depends on your age; the older you are, the more you can borrow. The most popular equity release scheme. Find out how much money you could potentially release with an interest-only lifetime mortgage. To understand the features and risks, ask for a personalised illustration from a lifetime mortgage company. These types of plans allow payments of up to 15 per cent of the original amount borrowed each year with no penalty. is rated Use our calculators to find out how much you could borrow, get a quick lending … Traditionally, no repayments are made on the mortgage until the death of the last surviving borrower, or their move into long-term care. This mortgage example illustrates the monthly mortgage repayments on a £140,000.00 Mortgage with different repayment terms (years) to illustrate how changing the amount you pay each month can dramatically reduce the total amount of interest you pay on your mortgage as well as helping you to repay your mortgage over a shorter term and become mortgage free. Fees, typically 1%, are only charged when submitting an application for Buy-To-Let, non-standard & lifetime mortgages. You could release money from your buy-to-let investment portfolio. They make monthly payments direct to your bank account to spend as you wish. For example, for a loan of £75,000 with another provider, and an advice fee of 2%, you'd end up paying £1,500. This equity release scheme involves selling a percentage of your home. Important: The loan amounts above are an illustration of the amount you could borrow. Find out how much money you could borrow when taking out a lifetime mortgage against your second/holiday home. Read more, The option of monthly repayments reversed the mechanics of traditional equity release schemes. Click "Two of us" to enter your joint income instead if you want a joint mortgage. We also submit an application for a mortgage on your behalf for free, in most instances. Read more. Since the financial crash in 2008, many new regulations were introduced to ensure responsible lending was adhered to. If you’re not sure whether any of our other products are suitable for you, it’s worth speaking to an independent financial adviser (IFA). All quotes can be tailored to your own circumstances and you are under no obligation to proceed. Find out the maximum amount of money you could borrow with equity release. Require monthly interest only repayments. There are no capital or interest payments to make every month, unless you choose to and the term of the mortgage is not fixed. Our friendly team of advisers are ready to help you. An equity release calculator can give you an idea of how much you could borrow, and get a picture of how different equity release schemes would work for you. How much can I afford to borrow as a mortgage? Find out how much you could borrow by selling a percentage of your property for a cash lump sum. The difference here is that unlike a standard mortgage, you can borrow past the age of 75. Find out more in our Lifetime Mortgage guide The interest rate is fixed for life. Mortgage calculators help you understand how much you can borrow, the stamp duty tax, and what your mortgage repayments will be in the UK. Read more, This is a recent innovation which enables ad-hoc repayments.