Hi,
I have used equity release for a reduced term as a "cheap" way borrowing money a few times. For example if you took a car loan out over 5 years then the interest over 10 years on a home loan is about the same (approx).
So I recently applied to release €16,000 over 10 years for various home improvements etc. This included €1000 extra over what I needed as a buffer, so this really is the max I need.
The institution have just informed me that the lowest amount I can top-up by is €25,000.
I see no reason why I cannot get approval on the €25,000.... but I dont' need that much!
What is to stop me taking the €25,000 and the 2 weeks later just repaying €9,000? There is no charge as it is a tracker.
Is there some rule against this?
I know I have to pay a solicitors fee to release the money but this is usually fixed and wouldn't increase if I took out €16,000 over €25,000.
I have used equity release for a reduced term as a "cheap" way borrowing money a few times. For example if you took a car loan out over 5 years then the interest over 10 years on a home loan is about the same (approx).
So I recently applied to release €16,000 over 10 years for various home improvements etc. This included €1000 extra over what I needed as a buffer, so this really is the max I need.
The institution have just informed me that the lowest amount I can top-up by is €25,000.
I see no reason why I cannot get approval on the €25,000.... but I dont' need that much!
What is to stop me taking the €25,000 and the 2 weeks later just repaying €9,000? There is no charge as it is a tracker.
Is there some rule against this?
I know I have to pay a solicitors fee to release the money but this is usually fixed and wouldn't increase if I took out €16,000 over €25,000.