Equity release for over 60's - options apart from BOI Lifeloan, SHIP or RRL etc

L

lettermac

Registered User
Messages
25
Help appreciated!

I have read some recent threads on this subject but am still unsure of my options.

Basic situation is;

Folks own house worth Eur750k but have very little pension in addition to the state benefits. Trading down is not a runner. Need to increase their monthly cash flow.

5 siblings including me, all with mortgages etc.

Could we take out some sort of interets only mortgage against their house and we will look after the repayments? We're looking for circa Eur 150k?

I'm trying to avoid BOI Lifeloan or SHIP if at all possible as they are penalising.

Any other alternatives??

Many thanks,
 
Last edited:
Re: Equity Release for over 60's - Options other than BOI Lifeloan or SHIP etc

I have an inkling that Brendan (?) may have summarised the main offerings in this sector at some stage recently but I can't find a thread matching that description at the moment. RRL is the only other one that I can think of offhand. Anything useful among ?
 
Would it be feasible for all five of you to take a €30,000 top up on your existing mortgages? This would keep it fair and not involve your parents having to borrow and/or put their home at risk.

Just a thought........

Sarah

www.rea.ie
 
Sarah,

Thanks you for the suggestion.

It would only be an option for two of us (younger ones have only started out on that road and are just abot coping with their repayments) so probably not a runner.

I think we're ok with the fact that the loan would be against the folks home. Ultimately what we are looking to do is effectivley give them some of our future inheritance. We'd rather see them have it than us later on.

Is my suggestion even a runner, in terms of us collectivley taking out a 150k int only loan secured against their house?? If not, is there anything esle you can think of?

Really appreciate it...........
 
You and your other sibling who are not at your borrowing limit could go guarantor on a mortgage on your parents property in their names. People generally only look at parents guaranteeing childrens' mortgages but it can be done the other way around. Lenders would also consider interest only on that basis and life cover for your parents would be waived.

Sarah

www.rea.ie
 
Sarah,

Thats seems ideal.

Why would most people not consider this option as oppose to the BOI Lifeloan or SHIP etc? It seems like a much better (cheaper) deal.

Is it just that it will now cost us (the kids) something as oppose to the other options where there is no cost now, but the liability could seriously mount up? Is that it? We'll only ever owe the bank 150k.

Am I roughly looking at an IO rate of 4.5% Therefore, this would be roughly 560 per month on a loan of Eur 150k.

Would all banks consider this?
 
4.5% is a bit optimistic for a interest only loan of that size - 4.6% or 4.75% is more realistic. And yes, assuming payments are made on time the debt would not rise above €150,000. It's another case by case scenario but personally I would discuss your case with FA, the EBS, PTSB and ICS before talking to the banks.

Sarah

www.rea.ie
 
Hi

My parents are in a similar situation, looking to raise 100k (to buy a new boat!)and both in late 60s.
There seems to be a lot of discussion in this area, but very few saying they have completed the process.

Am I right in thinking that a remortgage from one or more of the children and a reworking of the will to reflect this, is the preferrable option to equity release like SHIP etc?

Are there any other financial considerations, eg their pension, everyone's tax, assuming the payments can be met by the kids?

Thanks
 
You must log in or register to reply here.
Back
Top