OneFamily has launched an online calculator that allows advisers to see instantly which equity release product - also known as a lifetime mortgage - is best for their client.
Advisers input the number of applicants, the age of the youngest applicant and the value of the property, and within seconds the free tool displays the maximum loan amount the homeowner can take out, along with a comparison of costs across all of OneFamily’s lifetime mortgage products.
The calculator enables advisers to tell their clients the impact of the borrowing over the estimated term of the mortgage compared to what might happen to the house value.
In addition, it shows how choosing a monthly payment option enables homeowners to access the cash in their property but avoid roll-up costs.
The lender offers a range of products, including an interest payment lifetime mortgage, a voluntary payment lifetime mortgage and an interest roll-up lifetime mortgage.
OneFamily managing director Georgina Smith said: “We’ve designed our lifetime mortgage products to be as flexible as possible to ensure we can help a wide range of homeowners. We have developed this tool to enable advisers to see instantly which product works best for their clients and give them the best possible solution.”
Alex Reynolds, IFA at London-based Advies Private Clients, commented: “I think this will be helpful. When we have done this previously with clients we have used an Excel spreadsheet, but I am sure the calculator provides the information in a more client-friendly manner.
“I think [lifetime mortgages] are a growth area. They have not grown as much as people think, but they have got to be on an adviser’s radar. Anything that can help to explain products to clients is good. It is about making sure they are aware of the consequences if house prices do not rise.”
simon.allin@ft.com
