Mad Idea!!!!

VF10

BoI have funds which approx 7-15% yield year on year. risk etc but generally sure of >7% this side of a crash.
So what's the thinking about taking all the spare equity out of a house @ 3.75%, and bopping it into one of these funds? way I see it you win on the double in a rising market... i.e. % on house rises plus percentage yield on fund (less mortgage interest). Also gives a capacity to move fast in a moving market, i.e in a property crash scenario the money flows into stocks or commodities... you could offset property losses by betting on stock & commodity fund with the equity release...

Diarmuid

Wouldn't recommend it. 15% up means potential for lots of down too... I'd be very surprised if you could get 15%+fund costs year on year for the next 10 years !

Hitchhiker's Guide to...

this is the concept behind endowment mortgages ... extremely risky ... seriously wouldn't advise it, although theoretically it should work

see here as an example of some of the problems that have resulted: http://www.fsa.gov.uk/consumer/01_WARNINGS/endowments/mn_endowment.html