Is the Prudential Equity Release Calculator for New Equity Release Schemes Still Available?
The Internet is often filled with old information, which makes it difficult for you as a consumer looking for products and information. In particular, you may wish to search for the Prudential equity release calculator that used to be available online. You may even find results and information about new equity release schemes, but the information is not going to be valid.
The Change to Prudential
Prudential is currently managing and administering their equity release schemes sold years ago. They are not taking on new customers; however, they do offer further advances to their existing customers. This means unless you are already in an equity release lifetime mortgage with Prudential, you cannot take advantage of their products.
It would be nice if a Prudential equity release calculator was on hand for old customers in need of advancing their equity release sum; however, they do not provide this tool to consumers. You could try to calculate the option on your own or try to find another lifetime mortgage calculator, but in truth it would not be very helpful.
The reason for it not being helpful is due to the scenarios in which you can obtain an advance after already having a lifetime mortgage product in place.
Scenario 1: Drawdown Lifetime Mortgage
Under the Prudential Property Value Release Plan the company offered it was possible to choose between a lump sum or drawdown lifetime mortgage. This means a consumer could have the drawdown lifetime mortgage with escalating reserve facility already in place. If you have a reserve facility it will increase the amount you have available each year making it easy for clients to get more funds without you actually having to renegotiate with Prudential. There is a limit to how much it can increase of course since you need to have the equity to support it plus the equity to support the interest accruing since you took out the Prudential product. As long as there is equity in the home you will have no problem taking additional funds out of the account.
Scenario 2: Lump Sum Lifetime Mortgage
If you have the lump sum lifetime mortgage and took the maximum tax free sum available, it can be a lot harder for you to work out further funds. Since you took the maximum at the outset you have to hope the property value has escalated over that period of time. Prudential would have to calculate your lifetime mortgage as it stands including the compounding interest that has added to the loan. If the home value has increased or they are willing to offer more because you are old then there is a chance you could release more funds.
If the answer is no, then you have to see what your other options are in the market. You may need to convert your Prudential product to another company as a means of releasing more from the home. Independent equity release advice would be best at this juncture. It is often prudent to get independent advice to ensure that there is no other alternative to the “no” given by Prudential.
Additionally things have changed since the lump sum mortgage was started. In recent years companies including Prudential have lowered their interest rates because the base rate from the Bank of England lowered. While Prudential stopped offering new equity release plans, they can potentially lower your interest rate on the existing loan.
Concluding Thoughts on Prudential
Given the market changes and the product removal, you have to look at more than Prudential as a possible way to release more cash from your home if the equity is there to do so. While you cannot use a calculator from Prudential or find one the help you with Prudential products, there are definitely other sites with independent calculators and brokers who might be able to work a better deal than the one you have at the moment.
It is up to you and how much research you conduct to find a way to access more cash in your retirement. It may be time to downsize and take out what is left in the home as clear cash from a sale. You will not know until you use a calculator, and move away from such options as the Prudential equity release calculator from the older days of new client products. Make certain you examine interest rate, equity, and all potentials before making a decision to release more cash.