Borrowing money on your home...

presidenttttt said:
maybe an attractive option when interest rates are 2%
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Spry's rate is currently 6.7% fixed so it's not cheap but the product may still be suitable for some people depending on their circumstances.

The fixed rate currently offered is 6.70% per annum fixed for life.
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E.g. someone who needs money and doesn't need/want to pass the (full) value of their home on to others in their will. A poster like this might fit the bill:

Moneymakeover - Release Equity or cash investments to retire early?

Hi, Would love to hear some opinions. I am 47 yrs old, female, single no kids I am in the lucky position to max out my pension relief each year as well as save 2k each month into a Zurich investment fund. However with this I don't have much funds available during the month that don't already...
www.askaboutmoney.com
vonsmi said:
I don't need to leave anything behind, so if I die with nothing in my bank account and will have spend my last EUR on my last day on a 99cone :) I will have a done a great job. And there would still be a house, which I have every intention to draw equity out as much as I can for living expenses if needed and let the bank deal with the house once I am gone.
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Could be useful for someone who needs to fund a gap in retirement too, thinking of my own position if income from investments took a hit Equity Release could plug a gap while I wait for other sources of pension income to kick in layer on

I'd see it strictly as a fallback position, the interest rates are high, at least compared to mortgage rates
 
The CCPC deal with some of the features and pros/cons of equity release/lifetime loans:

Equity release - CCPC

If you own your home, an equity release scheme could allow you to release some of the value of your home if you meet certain conditions.
www.ccpc.ie www.ccpc.ie
 
ClubMan said:
It's not in all cases - e.g. as mentioned above, someone who doesn't want/need to pass their PPR on after death and wants to release equity during their lifetime for other purposes.
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Agre 100%, it can make sense for some people for sure
My comments related to my own situation
 
if a property is gifted to a child can they raise a mortgage on a property if the parents have a lifetime interest in the property ? Funds would be used to renovate same property
 
Parents and child would have to jointly grant a mortgage over the property to secure the borrowing. Bank would very probably want parents to be joint borrowers with the child, even if as between the parents and the child it is agreed that child, rather than parents, will repay the loan.
 
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