Equity is the value of the home minus any outstanding charges or mortgages against the property. The equity you hold in your home is often considered to be tied up in that you are unable to access it without selling your property.

Using an equity release scheme, an individual can unlock some of this equity in order to gain a lump sum of money or ongoing financial income from their property.

If you are reaching retirement age or even in retirement age and you are thinking about ways to increase your financial income, or perhaps would benefit from a large lump sum of money then you may ask yourself how much can I borrow? The great thing about an equity release calculator tool is that you can find out how much equity you would be able to release from your home without actually signing any contracts or taking on any commitment.

An equity release calculator also forecasts the estimated effect that interest will have on your equity in the future. This allows you to have a full understanding of how equity release will affect your home as you grow older. It allows you, the consumer, to be fully informed before you commit to any contract.

If you are seriously considering equity release then it is advisable to use an online equity release calculator to gauge both your eligibility and also how much you could benefit from it. This, combined with professional and independent legal advice, will help make the decision process easier.