In a report that accountants at PricewaterhouseCoopers published on the 1st of this month, Mervyn King has predicted that the Bank of England would raise interest rates on debts by 0.5 to 5% by 2015. Based upon the prediction made by the renowned British economists, analysts in the bank industry raised an alarm for the households as family persons would have to pay a huge amount of interest on debts due to rising rates.

Bank interest rates are supposed to be rising from the month of June this year. It will push up the cost of loans, mortgages and credit cards. Even it is alarming to imagine the figure of interest amounts for struggling householders who are between the jaws of low pay and rampant increase in must-pay monthly bills for food, clothes and energy. According to the Consumer Price Index, inflation level was higher by 3.7% in December. Housing costs rose by 4.8%, according to the Retail Price Index.

The aged and retired are feeling the pinch of rising inflation. Having residential properties of their own is a relief from the bite of inflation for the retired owners. They can unlock the accumulated equity value of their properties to release money in order to flinch from the financially trying times. They need to estimate the amount of money that they could release from their properties. In this respect, our equity release calculator will help them out.