Once armed with an estimate of maximum equity release amount for your tax free cash sum, you are ready to move onto the next steps. You will want to take the results from the equity release calculator and locate a specialist you can trust. This is providing the results showed a favourable outcome for you with regard to equity release. You should remember that the results from the calculator are a guide. They do indicate potentials; however, a qualified specialist may be able to find a product for you by changing a few parameters such as the maximum amount or health issues you have.
This is why after you know whether the maximum sum you want is available or nearly available, you still need to speak with a qualified professional. The calculator can only tell you so much and it may not reveal the best possible equity release product.
Advisers on Hand to Help
Independent advisers offering information about equity release are professionals. They had to qualify to be able to provide the advice to you. They also have to be regulated by the Financial Conduct Authority (FCA) as a broker in order to help you get the equity release you need. These advisers can ask you more questions that will help them narrow down the potential options for you.
The adviser has to provide you with the best possible advice or risk losing their qualification. They will also conduct a fact find as a way to get all your financial data as a means of gathering hard and soft facts that will help them narrow down the best possible equity release product for you.
The broker is going to help you decide if an equity release is right for you or if you need to look for an alternative. The correct adviser will not be afraid to say that downsizing is your better option as a means to gain more cash in your retirement.
Why you need the Loan
Consumers have numerous reasons to take out a lifetime mortgage or consider home reversion. Lifetime mortgages are a loan with an interest rate in which payment is made in full at death or when you move from the home that is your main residence. Home reversion is a sale of the property in part or full, where you have a lifetime tenancy agreement to live out your life in your home until death and there is no repayment or interest.
You may need money for a renovation to increase property value for a better sale. You may want to take a dream holiday, put grandchildren through University, or pay your expenses each month.
By deciding what is being done with the money the equity release adviser can use their own equity release calculator to determine if the maximum amount is really needed or if you can use a lower amount. There are options on the market where you can take a smaller sum, but have the ability to take the full maximum in the future. It is in this area that the adviser is going to earn the fee he or she charges to make an equity release package for you.
Drawing on Funds
Your adviser will want to know what the next 12 months expenditures will be as a way to get you a lump sum right now, but also leave money in equity for later use. With a drawdown mortgage you will need to take a lump sum that will have to last for 12 months. After the first 12 months, you can withdraw on the account taking what you need as and when you need it. This reserve is for a future time where interest is only charged on the money you actually use.
By conducting research for the best drawdown equity release your adviser could set up a plan where you do not use up the entire amount in the first round of release. On the other hand, if the adviser conducts research and finds a lump sum is the only way to go they will have the market data and information to show you why it is the best for your needs.
There are different products from several companies the broker will examine after you have used an equity release calculator to determine if it is worth talking to a broker. Your adviser will search out plans that fit your criteria in order to establish the best plan for your needs around what the market is willing to offer.