## What Are The 2014 Maximum Aviva Equity Release Calculations For The Aviva Lump Sum Max Plan?

It is easy to give a list of potential percentage of property value results for the maximum Aviva equity release calculations; however, to understand these results fully you need a bit more than the 2014 values. You need to understand how the loan to value percentage is gained. You should also know Aviva is just one company offering products to consumers in England.

Factors of the Calculation
Homeowners need to provide two pieces of information for the calculator to come out with results. The first is age. Age is going to determine the percentage of property value, while the second piece of information, property value, is going to give a result in currency for the amount that can be lent.

The age can be between 55 and 90 years for Aviva products. The younger a person is the lower the loan to value percentage is going to be; therefore, the lower the maximum lump sum is. The older a person is the more they will be able to release.

Why Age is a Factor
The premise of lifetime mortgage products like Aviva’s is to provide a loan without a repayment schedule. Instead, the loan is repaid after the person has died or moved into a long term care facility. When the home is no longer the main residence of the person the loan must be repaid. Before this time arrives, the homeowner is not going to make a payment towards the capital lump sum or the compounding interest. There are products such as the interest only lifetime mortgage, where the homeowner can pay the interest to stop it from accruing.

As the company is providing a loan without expected repayment and with compounding interest, the company has to make sure the total is not going to exceed the property value over time. A person of 65 years of age could have 35 years left to live in their current home. It would mean the loan is outstanding for that period of time without any payment being made. The company is looking for a return on investment, but they are also held to the Equity Release Council‘s ‘no negative equity guarantee’ which states the loan cannot exceed the property value and if it does the homeowner is not responsible for paying the difference.

For this reason the younger a person is the less they will receive. The older the person the more they receive on the assumption it will be returned much earlier than someone younger would be able to.

Current Aviva Age to Percentage of Property Value Figures
The following is a table of current Aviva percentage of property value figures based on age. It shows you the potential maximum percentage available to you for the lump sum plan in discussion here.

Age – Percentage of Property Value
55 – 20.5%
60 – 25.5%
65 – 30%
70 – 36%
80 – 47%
90 – 52%

Now that you have this information you can understand the maximum Aviva equity release calculations. For example, a home worth £200K for a person who is 65 at 30% percentage of property value would receive up to £60,000. A person who is 90 would get closer to half the property value, thus closer to £100k in maximum amount.

Once you have the calculation and determine if it will work for your needs, you can take on the next step. The main point is to ensure the product can release enough equity to do you any good. If you find the maximum amount is enough, it is best to speak with an independent financial adviser who is qualified to sell and talk about equity release products.

Using an independent source ensures you are getting the best product for you. This is not always possible by talking directly with Aviva or using the Aviva calculator. You may find after research that this is the best plan. However, you also want to make certain you are doing your research in full so that you won’t find out later you could have a product that is better in terms of interest rate or percentage.

The above are just the 2014 options for one product. The maximum Aviva equity release calculations are definitely skewed towards one product. While it helps you determine if Aviva is a product to look at, always make certain you have examined the market, as a whole, before signing any paperwork. You may find something better for your circumstances.

## The Benefits of Interest Only Lifetime Mortgage Calculators

For those considering equity release, you may have come across an interest only lifetime mortgage calculator. These are free online tools which offer to calculate the maximum lump sum you would be eligible for and what plans you would qualify for. Many people are reluctant to provide their personal information to these tools. However, there are a number of benefits associated with this readily available and easy to use tool.

The Benefits of an Interest Only Lifetime Mortgage Calculator:

Quick qualification information: Equity release schemes such as lifetime mortgages have specific qualification criteria. This is slightly more complex than other forms of conventional financing. An interest only lifetime mortgage calculator can provide quick information about whether you meet the qualification criteria. This can save a great deal of time for those who would not yet qualify and allow them the opportunity to decide whether to postpone equity release or pursue other options. For example, many people are unaware that equity release lenders consider the age of the youngest applicant in joint applications. This would mean that a couple aged fifty eight and fifty four would be ineligible for equity release for at least another year.

Highlights the implications of interest rates: An interest only lifetime mortgage calculator can be an excellent way to highlight the implications of different interest rates and specific plans. You will be able to see the long term costs involved in committing to a lifetime mortgage plan in order to make an informed choice about proceeding forward.

Compare plans: Many of the more in-depth forms of calculator allow home owners to compare different plans and products. This can allow the home owner more control and information to make informed choices. By exploring the implications of different plans and products you can explore whether it would be more beneficial to opt for a plan offering a slightly amount of release or one which offers a more attractive interest rate. While many people are interested in obtaining the maximum amount of release possible, an interest rate of even one per cent lower can significantly reduce the overall long term cost, which may make it a more attractive deal.

How to Make the Best Use of an Interest Only Lifetime Mortgage Calculator

Interest only lifetime mortgage calculator tools provide an extremely useful research resource. However, there are a number of guidelines to make the best use of these free tools:

Use more than one calculator: An interest only lifetime mortgage calculator is restricted to being linked to the specific product range of the company or broker. This may not represent the best possible deal for your circumstances. In order to obtain a better insight into the marketplace, it is best to use more than one calculator. Ideally, you should also incorporate using a general equity release calculator into your research to double check that a lifetime mortgage would be the best type of equity release for you.

Double check your information: Calculator tools are purely mathematical. They have no capacity to check the validity of your information. Therefore, there is a responsibility for you to double check your information. You should spend a little time researching property valuations in your area to ensure that the figure you enter for your property value is as accurate as possible. Additionally, request an up to date balance from your current mortgage provider. Both these factors will affect the amount of equity in the property and inaccurate information will compromise the reliability of the results from the calculator.

Plan out how much you actually need first: Many people begin their equity release research by looking for the amount of release sum which would be available to them. However, it can be a good idea to calculate how much you actually need before you begin. This will give you an indication of whether a particular scheme would be sufficient for your needs right away before wasting any more time researching. You may be pleasantly surprised by the amount of equity release available to you, which would give you more options on your flexibility which could provide a better deal.

If you are considering equity release, an interest only lifetime mortgage calculator can be a good starting point. However, it is important to realise that it should not replace professional advice. The calculator can provide the information you may need to make an informed choice about whether you would like to apply, but a professional adviser will be able to assist you in assessing the specific benefits and limitations of your chosen plan.

## The Versatility of Modern Day Equity Release Schemes

The process of releasing money or equity out of a primary residence without moving out is called ‘equity release’. Seniors who desire to free up money for different purposes choose this method as it allows them to have money in their pocket which they can use for different purposes. If you are living in the UK, you can arrange to get equity release as early as when you hit 55 years, but there are also limitations since you can only release so much at that age. Ideally, the older you are the greater the lump sum you get from equity release loans.

The main reason why people choose equity release loans is to raise money, which in turn will help improve their standard of living. The reasons could be for a multitude of different purposes, ranging from home improvements, helping the kids, holidays or even having an emergency fund in the bank.

In the past, people used to release equity to enhance their pension, go on holidays, and make their retirement years much more pleasurable. If you have a major project that requires cash in a lump sum, this will be a great idea; for instance, buying a second home in the UK or abroad, or to simply enhance your retirement package.

Other people take up equity release loans for real life situations that need accomplishing. For example, there are those who take up the lump sum to pay off a mortgage and consequently increase their monthly income, while a long waiting list for a hip replacement or other similar surgery may prompt one to take up equity release.

You might also choose to use the money to help family members buy their first home, do your own home improvements, or replace a family car. You can also choose to invest the money in property abroad which then allows you to travel away and have time with your children, especially if they are not living close to you. You might also consider buying a motor home and having fun travelling all over. The principle of equity release is to have money and spend it on what you want.

When people choose this option of raising funds, usually they do not have any other options left, or the other options are too expensive or inconvenient. In its infancy, people tended to use equity release for lifestyle reasons which effectively were optional and not a necessity. However, more and more seniors today are using the equity release facility to enhance their pension, or to fund their long-term care or help their children in financial crisis or for business purposes. These new era requirements have become more of a ‘need’ rather than a ‘want’ in the current economic climate.

Given this era of need you will definitely want to compare the different plans that exist. You may find that there is one solution that best fits your requirements. You may be older than 55 and wish to have more money released than a person would get at this age. Perhaps you have a health issue? If there is something attacking your longevity, there is a solution.

You can take out an enhanced lifetime mortgage. You receive a larger lump sum than you typically get. You also have the funds to make your life as comfortable as possible. If you are not taking out a loan to help pay for your expenses or help your children out, consider an interest only lifetime mortgage.

An interest only lifetime mortgage is designed to make taking out equity cost effective. You pay the interest that accrues each month on the loan. You do not pay the balance like any other option; however, you also do not add more to your principle balance. This keeps it at a reasonable level and an inheritance for your family.

Once you reach 65 you have an alternative to equity release loans in the form of home reversion. This option ensures you do not owe any more debt now that you are in retirement, but you do have cash to spend. You just have to sell your home, not always something most retirees are comfortable with, but still it is a choice.

Before one embarks on an equity release plan, it is important that they involve an independent financial adviser who can guide them on the best equity release method depending on their own unique circumstances. Generally, people aged above 55 and who own a property can use equity release loans, and the amount of money released will largely depend on their age and their health condition.