This tool will calculate your potential lifetime mortgage amount based on your property value and age.
How to Use the Lifetime Mortgage Calculator
To use the lifetime mortgage calculator, follow these steps:
- Enter the value of your property in British Pounds (£) in the “Property Value” field.
- Enter the amount of any existing mortgage on the property in the “Existing Mortgage” field.
- Enter the age of the youngest homeowner in years in the “Age of Youngest Homeowner” field.
- Click the “Calculate” button to view the result.
How it Calculates the Results
The lifetime mortgage calculator follows these steps to calculate the potential amount you can borrow:
- The maximum loan-to-value (LTV) is determined based on the age of the youngest homeowner.
- The maximum LTV is multiplied by the property value to get the potential mortgage amount.
- The existing mortgage amount is subtracted from the potential mortgage amount to provide the final result.
Limitations of the Calculator
This calculator provides an estimate based on the provided inputs and typical LTV ratios for lifetime mortgages. Actual amounts may vary based on lender terms, interest rates, and other conditions. For a precise figure, consult a financial advisor or mortgage specialist.
Use Cases for This Calculator
Calculate Maximum Loan Amount
Enter your property value and age to calculate the maximum loan amount you can borrow with a lifetime mortgage. The calculator takes into account your property value and age to determine the loan amount available to you.
Estimate Interest Rates
By inputting the loan amount and desired term, you can estimate the interest rates associated with different loan terms. This feature allows you to compare interest rates and select the most suitable option for your needs.
Plan Monthly Payments
Input the loan amount, interest rate, and loan term to calculate the monthly payments. This feature helps you plan your budget by providing an estimate of the monthly payments required for the lifetime mortgage.
Determine Total Interest Paid
By entering the loan amount and term, you can determine the total interest paid over the lifetime of the mortgage. This information gives you a clearer picture of the overall cost of the loan.
Explore Equity Release Options
By inputting your property value and age, you can explore different equity release options available to you. The calculator provides insights into how much equity you can release based on your specific details.
Adjust Loan Term
Experiment with different loan terms to see how they affect the loan amount, interest rates, and monthly payments. This feature allows you to customize the loan term to find the most suitable option for your financial situation.
Compare Lump Sum vs. Monthly Payment
Compare the benefits of receiving a lump sum payment versus monthly payments by adjusting the calculator inputs. This feature helps you understand the implications of your choice and make an informed decision.
Calculate Early Repayment Costs
Estimate the costs associated with early repayment by entering the loan amount, term, and desired repayment timeline. This feature helps you plan for potential scenarios where you may want to repay the loan early.
View Total Loan Repayment Amount
Input the loan amount, term, and interest rate to view the total amount you will repay over the lifetime of the mortgage. This information gives you a comprehensive understanding of the financial commitment involved.
Get Instant Results
Experience real-time calculations and instant results as you input your details into the calculator. The user-friendly interface ensures a seamless and efficient experience in obtaining the information you need.