Equity Release Calculation
Members of the
Equity Release Council
Equity Release Council
Calculating the amount you can borrow
The amount you can raise using Equity Release is based upon a number of factors:
- Your property value and the age of the youngest homeowner. These are used to produce a percentage of the value of your property and converted to a maximum amount that they will lend. If the maximum a lender will lend is 30% of the property value, and the youngest homeowner is aged 70 and the property value is £300,000, the owners could raise up to £100,000.
- The interest rate and deal offered: this is dependent on how close the sum you borrow is to the maximum the lender will offer. The higher percentage of your property value you want to release, generally the higher the interest rate.
- The market can be daunting to navigate. This makes it very important to seek advice from a Whole of Market broker, such as Ocean Equity Release who have access to rates from all lenders and ensure your personal requirements are achieved.
- Find a good, reliable Equity Release Broker to advise you. Read reviews from Brokers previous clients from Google, or sites like VouchedFor or Unbiased.co.uk where you can find many independently verified reviews.
- Make contact with your chosen broker via email or telephone to ask some questions and determine if you feel this is the right broker for you. Do you consider them to be efficient, friendly and client focused? Once you have chosen which Advisor you would like to meet, they will offer you a phone or video appointment to speak with you to discuss your circumstances.