Equity Release - Available?

[Gordon Gekko]

Hi,

I thought equity release was a thing of the past but I see from Bank of Ireland’s website that they do it.

Has anyone availed of equity release?

Many thanks,

Gordon

 

[RedOnion]

Hi Gordon,

It's available for specific purposes with most lenders. Home improvements, extensions, or paying college fees would be the most common purposes that you see approved.
The non Bank lenders might have some additional flexibility in how they approach some purposes.

 

[Gordon Gekko]

Equity Release - Manage My Mortgage - Bank of Ireland

We may be able to help when you need to top up your mortgage for home improvements, educational or medical expenses.

personalbanking.bankofireland.com

Home improvements, medical expenses, or educational expenses apparently.

 

[NoRegretsCoyote]

I asked BoI a few years ago (didn't go through with it) for home improvements.

They needed pre- and post-valuations, quotes, invoices, and I think an engineer's certificate at the end proving works had been done.

It was only a phone call but they seemed to indicate that our income wouldn't be enough either, I think it was just after Central Bank rules had come in and we got our mortgage before.

So in short it would be pretty bureaucratic.

 

[Gordon Gekko]

Thanks.

Probably another example of the banks being too cautious.

Why not allow people to borrow within the Central Bank Limits?

 

[RedOnion]

So in short it would be pretty bureaucratic.

It can be, but it depends on the lender, the amount being released, and whether you already have enough equity or if you're relying on the works to increase the value of the property.

Generally speaking, subject to repayment capacity within the existing term and maximum LTVs, there aren't a lot of questions for amounts of around 30k to 50k. Anecdotally I've heard of some lenders fairly routinely approving amounts like this as part of a switcher application.

I should have added before, any equity release I've seen with the banks is only available for existing mortgage customers, or as part of a mortgage switch.

Dilosk & Finance Ireland will both consider for other purposes, including to come up with the deposit for investment property.

Equity Release - Manage My Mortgage - Bank of Ireland

We may be able to help when you need to top up your mortgage for home improvements, educational or medical expenses.

personalbanking.bankofireland.com

Home improvements, medical expenses, or educational expenses apparently.

And debt consolidation in some circumstances.

 

[NoRegretsCoyote]

Generally speaking, subject to repayment capacity within the existing term and maximum LTVs, there aren't a lot of questions for amounts of around 30k to 50k.

Thanks. I only had the BoI experience which I think was what the OP was looking at.

My experience was about 5 years ago for that kind of amount and LTV was 70%. BoI may have become less sticky in the meantime.

Why not allow people to borrow within the Central Bank Limits?

I am speculating here as the guy on the phone wasn't very clear. But we got the mortgage at I think 3.7 LTI 2 years before the rules were introduced in 2015.

I made the query about a top up after the Central Bank rules were introduced and the outstanding balance plus equity release would have taken us back over 3.5 LTI.