This calculator will help you to calculate the largest current Lump Sum amount that you can borrow through equity release against the value of your home with a Safe Home Income Plan (SHIP) guaranteed Lifetime Mortgage, using the figures published by the lender currently offering the largest percentage loan in relation to age. Please note that not all lenders will offer you as much or at the same minimum age. It will also enable you to estimate the effect on the future value of your estate caused by both the rolled up fixed interest rate for the loan and your estimate of future inflation for property values. You may also be able to borrow slightly more if your health is impaired. Contact us if you wish to find out if you are eligible for enhanced rates (01209 315080)
The results will be shown both as the remaining equity value in the property and as a percentage of the adjusted property value, so that you can consider what effect this might have on your beneficiaries. Remember that house prices can go down as well as up, particularly in the short term, and that future increases in value are not guaranteed. Notwithstanding, the lifetime guarantee means that no monthly mortgage payments will ever be required and that negative equity will never be charged as a debt to your estate.
Think carefully about this information and the results you obtain using the calculator before you decide whether or not to go ahead. If you are at all unsure about which lifetime mortgage is right for you, you should seek independent financial advice and ask your adviser to make a recommendation. The Mortgage Shop neithr arranges or advised on Lifetime Mortgages.
The figures given rely on your own best estimates of your property value, interest rates and future inflation, which may or may not prove to be accurate, and should only be taken as an indication of what might be the results if you were correct in your assessments. They are not an illustration and should not be used on their own as a firm basis for making the decision to borrow or not.
The calculation of IHT is not a prime function of this calculator and the potential effect on IHT shown assumes that there is no additional relief available arising frm transfers of unused nil rate bands. You should not take out a Lifetime Mortgage solely for IHT reasons or without independent advice and you should discuss it with your family before making a decision.
You should also consider the effect taking out a Lifetime Mortgage may have on any State Benefits you are either receiving or that you may become entitled to in the future. These can include Grants for Repairs, income in the form of Guaranteed and Savings Pension Credits, and payment of your Council Tax. If you are in any doubt, you should ask an independent financial adviser for advice.
The Mortgage Shop accepts no responsibility for any decisions you may make as a result of using this calculator. If you wish to compare the differences between Lifetime Mortgages and two different Home Reversion Schemes, click on the links below
This is a Lifetime Mortgage.To understand the features and risks, ask your adviser for a personalised illustration
