OneFamily has launched a lifetime mortgage calculation tool, to help advisers navigate their way around their products.
The tool, which can be found at: www.onefamilyadviser.com/mortgages/lifetime-mortgages/calculator/ will give an instant indication of what a borrower's financial commitments will be after taking into account a variety of factors.
It takes account of the value of the property and mooted increases in that value, as well as how much one wants to release from one's property, how frequently they will want to pay the interest, and how long the term of the loan should be.
Simply by altering one factor, the tool instantly calculates the repercussions for different payments, depending on how long the loan is for and the rate of interest one is paying. For example, a single 63-year-old with a property worth £450,000, is allowed to borrow up to £130,500 using OneFamily's interest payment products.
Taking out £100,000 at an interest rate of 5 per cent, repaid over 20 years, would result in monthly repayments of £417, and reducing the interest rate to 4 per cent would result in monthly payments of £333.
Emma Banks, corporate communications manager at OneFamily, said: "It's a really useful tool for advisers. We have a range of different lifetime products, so it's quite useful for advisers to look at. It just means you can capture all the different products quite quickly."
Tracey Lucas, an equity release adviser at Needham Mortgage Centre, said: "I think it's a good thing, I would be very happy to use that. Obviously, when you see clients you need to take into account their whole situation, and using an online tool clearly doesn't do that. But the first question people have is how much can I borrow? In that situation, it's possible a good tool so that you can find out if you're eligible."
