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Do Home Reversion Calculators Still Exist?

Do Home Reversion Calculators Still Exist?

The equity release market has changed considerably since the beginning of the industry. Products have come and gone. For example, the Hodge Share Growth Option, a home reversion plan, is no longer available. Hodge Lifetime was a forerunner for all equity release schemes. The market is left with few companies offering the product. They include Bridgewater, Crown and New Life. Since home reversion payouts are dropping in these last few years; there has been a drop in tools available to consumers like you including home reversion calculators.

Impossible to Find – NO!
It is definitely harder to find home reversion calculators; however, it is not impossible. You just need to know where you can search for the tools to make certain you are on the proper website and not led astray. Doing a Google search will show you results of supposed websites providing these HR calculators; however, the actuality is they offer a lifetime mortgage calculator. These two types of calculators are very different in the results they offer, thus the need to find a true tool.

Instead of getting frustrated by the misleading results, you can visit Crown or www.homereversion.org. Crown Equity Release has an association with HomeReversion.org ensuring you find a proper calculator for your home reversion needs. By using this product on the aforementioned website, you can determine whether it is possible to gain enough tax free cash to help during your retirement.

Exploring the Differences in Products
Lifetime mortgages are loans available to retirees aged 55 or older. There are four types of lifetime mortgages, which are not currently relevant to the discussion. With a lifetime mortgage, you will need to pay the principle tax free sum plus any interest that has accrued at the end of the loan. The end of the loan is defined as your death or a move to a long term care facility. Lifetime mortgages can be transferred to new properties with some companies, not all but some, thus the definition of payment.

Home reversion is not a loan at all. There is no interest that applies to the concept. Instead, you allow partial control of your home to go to the buyer. You will sell your home, in full or part, in return for cash. It is tax free cash, to be used as you wish. The buyer signs a lifetime tenancy agreement with you allowing you to remain in the home until death or again until you wish to move. At the time you move or expire, your home is sold to the buyer in full. Any value or equity left in the home is given to your beneficiary or you.

The buyer then has full ownership of the home, which they can then sell to a new buyer. The new buyer will pay full value for the property, whereas you received only partial value based on the percentage you sold originally and at the end. An appreciation of your home allows for a higher percentage awarded to you.

Calculating Based on Value and Age
As you can guess, home value is going to apply to the amount of money you can obtain with home reversion. The more value a home has initially, the more you can get in a percentage. It is best to have an accurate value or as near an approximation as possible. Zoopla can help or Nationwide (if you have an old appraisal).

You must be 65 to take on home reversion. The older you are the more money you can receive. The premise is all about life expectancy for the company buying your home. They assume the older you are the quicker you will die. It sounds cold and it really is. They are in for the investment and potential money they can make, thus the less time you are in the home, the better, especially as the market improves. The more a home appreciates the more they can make on the resale.

Lifetime Mortgage Calculator
Results from a lifetime mortgage calculator are based on your age, home value, and the fact that there is an interest rate. You receive a specific percentage of the home sale just like home reversion, but you cannot determine what that percentage is.

With home reversion you can tell the home reversion calculators what percentage you want to sell of your home to see if it is going to result in enough cash to live during your retirement comfortably. An advantage is that you can always sell more of your home to gain more funds and still live in it.

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Finding The New Administrators Of Northern Rocks Equity Release Mortgage Book

Finding The New Administrators Of Northern Rocks Equity Release Mortgage Book

If you are one of the old benefactors of Northern Rock Equity Release then you should be aware that Northern Rock do not write new equity release business any longer. This doesn’t means that your deal is over but in fact, they have sold off their equity release mortgage book to Papilio UK Equity Release Mortgages Ltd who are now responsible for managing all those old completed cases which were originally taken out with Northern Rock Equity Release.

There was a time when Northern Rock stood nothing less than the other major equity release lenders such as Aviva, Portman Building Society, Hodge Lifetime and even In Retirement Services. They got in deep trouble with the credit crunch that swept the financial world leaving them as one of the worst affected. After the sell off in March 2012, Papilio UK Equity Release became the new administrator, who are now handling all the enquiries of customers belonging to Northern Rocks equity release book.

If you are trying to enquire about taking some more cash from your home equity loan which was originally offered by Northern Rock, then you must know that the new Papilio administrators don’t allow you to take any further loans on your home. Apart from that, you might be shocked to hear that the rate of interest that you are paying to them is approximately 1.3% more than what the other lenders are offering in current scenario’s. Therefore, rather than struggling on thinking your bridges have been burnt, get some financial advice on this matter.

Considering the power of the compounding interest, you should consider the potential savings you could make by switching to another equity release lender who is offering a much better rate of interest.

An equity release remortgage is therefore one angle that should be explored further. This option could be exercised as it not only promises you a huge saving on interest in the long run, but also the new lender may be able to assist with further borrowings on top. Therefore you can opt for an immediate release of equity or even have a cash reserve to be accessed at any time in the future via a drawdown lifetime mortgage basis.

If you are worried about repayment and other miscellaneous charges on account of closure of your original Northern Rock equity release mortgage then take a breath of relief. The total set up cost to switch over is not as much as you might anticipate.

Currently, Papilio are letting customers go with NO early repayment charge given that they wish to reclaim their initial investment. You can find many current equity release brokers offering free advice and free valuations as well as cashbacks up to £1000 upon the remortgage of your property. Looking diligently, you can even strike on the interest rate as low as 5.57% per annum.

With interest rates never been so low & having the security of fixing them at today’s rates for life, never has there been a better time to review your old Northern Rock lifetime mortgage.

Call 0800 678 5159 if you require further assistance about contacting Papilio UK Equity Release Mortgages Ltd.

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