Equity Release Drawdown Calculator – Plan Your Future
Our preferred equity release adviser is Age Partnership. For free and impartial money advice you can visit MoneyHelper.
Our preferred equity release adviser is Age Partnership. For free and impartial money advice you can visit MoneyHelper.
Are you curious about equity release plans? Do you want to grasp how a drawdown lifetime mortgage works? You’re in the right place. Each month, more than 7,000 people come to our website for guidance on equity release. We’re here to help you:
- Understand what equity release is.
- Learn how your home’s equity could be at risk.
- Figure out how much you might pay back with equity release.
- Comprehend how drawdown works in equity release.
- Discover the pros and cons of equity release.
We know that equity release can seem confusing. You might worry about how much money you could get or what could happen to your house. But don’t fret; we’re here to clear up these concerns. Using our expertise and the handy tool called an equity release drawdown calculator, we can help you plan for your future.
We understand your situation and are ready to guide you through this process. Let’s start this journey together.
How do they calculate equity release?
Equity release providers calculate how much equity you can access based on your age, the value of your property, and possibly the projected value of your property in the future.
How does drawdown work in equity release?
Drawdown equity release is when the loan provides an initial sum and a drawdown facility which you can access when you like. You’ll be able to take further amounts from the loan at later dates when you need the money.
You won’t be able to access a bigger loan with drawdown equity release. You’ll just be able to receive the loan in the instalments you choose. However, this can be beneficial for different reasons.
What is an equity release drawdown calculator?
An equity release drawdown calculator estimates how much you will have to repay when taking out a drawdown lifetime mortgage. You can enter the amounts you plan to draw down and an interest rate to see how much these loans will cost over different periods.
How equity release could help
More than 2 million people have used Age Partnership to release equity since 2004.
How your money is up to you, but here’s what their customers do…
Find out how much equity you could release by clicking the button below.
In partnership with Age Partnership.
How much will I pay back with equity release?
If you take out a lifetime mortgage, the amount you will repay is determined by the loan amount, the interest rate, and the length of time the lifetime mortgage is active.
If you hold a lifetime mortgage for over a decade, you should expect to pay back x2 or x3+ the amount loaned to you through the eventual property sale.
You should be aware that any variable or fixed interest is compounding, which means the interest is applied to the loan amount and any interest previously accrued. This causes the debt to grow at a higher rate each month.
It’s important to look for a lender that is a member of the Equity Release Council (ERC) and commits to the negative equity guarantee. This is a concrete assurance that you will never have to pay back more than what the property sells for when the time comes, so no outstanding equity release debt is taken from the rest of your estate if you have passed away.
Is drawdown equity release a good idea?
Source: https://forums.moneysavingexpert.com/discussion/6096764/drawdown-equity-release
Most pros and cons of equity release are the same for drawdown equity release, but there are some additional benefits for people in specific circumstances. These are:
- By reducing the amount you receive initially, you might still qualify for means-tested state benefits that otherwise would have been stopped.
- By staging the loan in drawdown instalments, you can budget better for what the money is to be spent on.
- By only taking part of the loan, you can mitigate the amount of interest applied on a lifetime mortgage as the interest is only applied to the amounts taken – not the amount you have been approved to borrow.
Join thousands of others who release equity
Age Partnership have helped over 2 million people release equity from their home.
Mrs Wareham
“I am more than pleased to have taken out Equity Release with Age Partnership.”
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What is the downside of equity release?
The main downside of equity release is that the loan will have to be repaid eventually by the lender forcing the sale of your home. This means you won’t be able to pass on the property to loved ones when you pass away, and it will mean loved ones will inherit less of your wealth.
Equity release plans can be expensive to repay so it’s essential that you receive equity release advice to understand how they affect your future. You don’t want to become another horror story.
Are equity release calculators accurate?
Equity release calculators should be used as a guide only. Even calculators on lender sites should not be taken as 100% accurate. You may not be offered the interest rates advertised due to your age or details about your property.
Things to consider
Equity release will involve a home reversion or a lifetime mortgage, which is secured against your property and will reduce the value of your estate and impact funding long-term care. Our equity release partner, Age Partnership provides a personalised illustration to explain the full details. The money you release, plus the accrued interest is then repaid when you die or move into long-term care. Advice is required before proceeding with equity release and any existing mortgage must be repaid. Age Partnership provide initial advice for free and without obligation. Only if your case completes would Age Partnership’s advice fee of £1,895 be payable. Other lender and solicitor fees may apply.
