Equity release

barry.kel

My 78 year old mother is proposing to release some equity from her house to gift me for a deposit on a new build. I will be taking on the repayments and my question relates to the terms of equity release. The house is mortgage free and she is willing to release €30000-€40000 whichever is required. My question is, are lending institutions willing to lend this money to a 78 year old with myself as guarantor and how long would they loan for? Many thanks.

Sam Russell

The loan is backed not by a guarantor but her own property that will be sold on her death.

The loan will be on a fixed rate of something like 6%-8% for the lifetime of the loan which will be her lifetime. Compare this with a mortgage rate of 2%-3% meaning this loan interest is very high.

You need to explore this further as it does not sound like a good idea compared with other options. Could your mother not go guarantor on a loan for you instead at a lower interest rate, backed by the sale of her house on her death?

This in not advice, merely a suggestion of looking at other options. A financial advisor may have better suggestions.

Spear

Try the personal banking forum instead:

https://www.boards.ie/categories/banking-insurance-pensions

Jim2007

Duplicate see: https://www.boards.ie/discussion/2058207939/equity-release-or-remortgage#latest