Is it possible to release equity on mortgaged property

bonnie123

Registered User
Messages
8
Good afternoon
Before I go talking to brokers or banks I wanted to see if my query was possible in the current climate.

Is it possible to release equity on my existing mortgage?

Background
Existing mortgage outstanding €70k
Term 29 years aprrox
Current value €175k (Conservative estimate based on similar property sales in past 3 months)
detached PDH in Letterkenny Co Donegal
Monthly repayment €290
Rate 2.7% (i think) variable with Haven mortgages

Personal background
Full Time permanent employed sál approx €38k
Age 33
Single no dependants

Reason to request equity release
-i purchased the property in 2014 at a much reduced price and put all my savings to facilitate the purchase along with cosmetic renovating the property incl having to take out personal loans, credit card in the years since current personal debt approx €25k
-would any institution that you are aware of look at releasing equity of €25k to allow me put my personal borrowings onto the mortgage given the very low LTV held
- I am aware of the additional costs involved in placing short term debt onto the mortgage however this is something that I have considered & feel comfortable with.

Any help would be greatly appreciated

Thank you
 

LDFerguson

Frequent Poster
Messages
4,088
Yes this looks like a runner. Most lenders will allow a limited level of refinancing other loans as part of a mortgage switch. You should also be able to avail of one of the switcher cash-back offers. There's a whole area here on Askaboutmoney for mortgage switchers.

If you are going to be better off every month by doing this, I would recommend that you shorten the term of the mortgage while you're at it. Get rid of the credit card and start putting money each month into a savings account instead.
 

NoRegretsCoyote

Frequent Poster
Messages
917
I asked BoI a few years ago (similar LTV to you) and they would only consider equity release for renovations, and needed proof of plans and work being carried out. Not sure if your lender would consider this on a backdated basis.

If you want to consolidate debt it might be easier to sell and buy again something similar. Your income will support a mortgage of something over €100k and you have the 20% mover-purchaser deposit.
 

Coldwarrior

Frequent Poster
Messages
170
EBS will do this, though you might need to show some invoices etc as proof that the loans were spent renovating the house. Suspect some other banks would do this too, a broker may help in this case.
 

Coldwarrior

Frequent Poster
Messages
170
If you want to consolidate debt it might be easier to sell and buy again something similar
Is that not a bit drastic in this case? It'd mean incurring a lot of other costs like estate agent fees, stamp duty, movers, solicitors fees(more than for a switch), possible rent between selling & buying etc that would negate a lot of the benefit of consolidating the debt.
 

NoRegretsCoyote

Frequent Poster
Messages
917
Is that not a bit drastic in this case? It'd mean incurring a lot of other costs like estate agent fees, stamp duty, movers, solicitors fees(more than for a switch), possible rent between selling & buying etc that would negate a lot of the benefit of consolidating the debt.
Of course, that's why I said 'might'!

Clearing €25k at credit union rates could cost €10k over ten years compared to mortgage rates though.
 

Monbretia

Frequent Poster
Messages
1,649
I think banks have seriously moved on again from the 'few years ago' mentality of only doing equity releases for home improvements, they got strict for a while but seem to have seriously loosened the purse strings again! I'd definitely ask your own bank at least or switch if needs be.
 

cremeegg

Frequent Poster
Messages
3,082
I suggest that rather than equity release what you want is to remortgage for the higher amount. This should be possible.

Keep the term as long as you can. You can repay early if that becomes suitable.
 
Top