The tool will allow advisers to specify the loan and repayment amounts so it is tailored to each borrower’s circumstances. It will also show what impact any additional borrowing will have on the final total owed and the remaining equity in the property.
The calculator was first trialled with selected members of Air Club and is now available on request for firms to white label and put on their own website. This is expected to encourage customers to use the tool as part of the initial research process.
Air said the new tool was part of its support to help its members grow and develop their businesses.
Paul Glynn (pictured), CEO of Air, said: “Equity release products are more flexible than they have ever been with the ability to manage borrowing in the current higher interest rate environment a paramount consideration.
“Therefore, we are delighted to launch our new retained equity and repayments calculator which one adviser who tested it dubbed ‘game-changing’ as it will help advisers bring to life the positive impact that making payments can have on the total cost of borrowing.”
“With later life lending products like equity release becoming increasingly actively managed, these types of tools are a step forward and advisers should be using these types of illustrations as a matter of course within the advice process. An informed engaged customer is more likely to receive the good outcomes they need,” Glynn added.
