# Personal Loan for an 87 year old?



## Candy Crush (13 Feb 2019)

Hi
Instead of going down the Equity Release route, (which I believe is very costly, would it be possible for an elderly person to take out a personal loan to cover the costs of their care.
The circumstances are that necessary home care is costing more than income.  They own a valuable house - probably worth €750K.  The family foresee a need of approx. €80,000 to tide them over for the next 5 years.  Obviously, the house would be used as collateral and offspring would be prepared to go guarantors on the loan, but is it generally something that banks would consider?


----------



## Bronte (13 Feb 2019)

Doubt you can go down the equity release route. Why not sell the home, downsize and do it that way?


----------



## Jim2007 (13 Feb 2019)

Candy Crush said:


> Hi
> Instead of going down the Equity Release route, (which I believe is very costly, would it be possible for an elderly person to take out a personal loan to cover the costs of their care.
> The circumstances are that necessary home care is costing more than income.  They own a valuable house - probably worth €750K.  The family foresee a need of approx. €80,000 to tide them over for the next 5 years.  Obviously, the house would be used as collateral and offspring would be prepared to go guarantors on the loan, but is it generally something that banks would consider?



If you can meet the care costs without a loan, how are you going to meet the regular repayments on the loan?


----------



## Gordon Gekko (13 Feb 2019)

Would it not be better for the offspring to fund the care and get 40% tax relief on it. They could fund it via their own resources or take out debt. Then they’re made whole again via the Estate.


----------



## Monbretia (13 Feb 2019)

Above post is best solution, a bank is not going to give any sort of a loan without repayment capacity unless there is any of those equity release type loans with no payback until death back available again.


----------



## Candy Crush (14 Feb 2019)

Thank you very much for your input. Much appreciated.


----------



## RedOnion (14 Feb 2019)

Monbretia said:


> a bank is not going to give any sort of a loan without repayment capacity


Under CPC it's effectively illegal to do so.



Monbretia said:


> unless there is any of those equity release type loans with no payback until death back available again.


SeniorsMoney have been saying for a while they are going to start writing new business, but no sign of a date.


----------



## Candy Crush (26 Feb 2019)

RedOnion said:


> Under CPC it's effectively illegal to do so.
> 
> Sorry Red Onion.. Could you explain what CPC is?  Thanks


----------



## RedOnion (26 Feb 2019)

@Candy Crush 
Sorry, Consumer Protection Code.


----------



## noproblem (26 Feb 2019)

Gordon Gekko said:


> Would it not be better for the offspring to fund the care and get 40% tax relief on it. They could fund it via their own resources or take out debt. Then they’re made whole again via the Estate.



Yes, this would be the ideal route. However, the family would need to be certain that a will is to their benefit. Might come across as being rude in the situation they all find themselves in, but such is life.


----------

