• What is Compound Interest and how does it work with an Equity Release Plan?

    One of the many questions asked by those thinking of taking out a lifetime mortgage is how much will it ultimately cost? It’s a question we get asked a lot here at Equity Release Supermarket – so we thought it best to clear things up. Whilst calculating the maximum amount of money you can borrow from your property is relatively straight-forward, calculating what’s known as ’compound interest’ is slightly more complex. But don’t worry, this isn’t anywhere near as scary as it sounds. In this article, we’re going to explain how interest is calculated on a lifetime mortgage (the most popular…

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  • What Are the Long Term Costs of Equity Release Schemes?

    By Mark Rumney on

    One of the most enjoyable aspects of being an equity release adviser is that every customer is different, and have their own unique set of personal circumstances. One of the main areas concerning my equity release clients is how much equity release will cost them over the longer term. We can calculate the maximum amount of borrowings initially using an equity release calculator, however calculating the actual balance to be repaid upon death or long term care is a different calculation. My clients vary significantly, from those who have no interest at all in what will…

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