# Can you Release Equity on your house if mortgage top up not possible?



## Daithí Lacha (2 Mar 2017)

Hi – I'm looking for information on whether it is possible to release equity on my house in any way other than a mortgage top-up.

My wife and I live in a house valued roughly at 800k with a tracker mortgage of approx 220k – We want to raise 60k to pay off some personal debt.  

We were refused a mortgage top up from our bank and want to know if there are any other ways to release equity on the house?

We both work freelance and don't (can't) want to try and switch mortgage.

Thanks for any help - D


----------



## Bronte (2 Mar 2017)

When I hear this 'release equity' to pay down debt my heart sinks. 

You need to tackle your debt issue.  How it arose and why it's become such a nightmare for you.  Have you considered downsizing? 

Is your total debt 60K.  What is it, car loans, CU debt, credit card debt?


----------



## Steven Barrett (2 Mar 2017)

If your bank won't do it for you and you don't want to switch lender, I don't see what options are available to you. 

Pepper do allow you to pay off debt in the mortgage (debt con********** is blocked!) but they will want to take over the whole loan. If you are both freelance, you may have difficulty in switching. You would also lose your tracker mortgage, and your debts would be payable over a longer period, so it may be more expensive anyway. 

Steven
www.bluewaterfp.ie


----------



## Daithí Lacha (2 Mar 2017)

thanks for the replies - will have a look at pepper and downsizing


----------



## Bronte (3 Mar 2017)

Are Pepper subprime?  Not advisable.  Stay away from those boys.  And it's madness to pay off short term debt by adding it to your mortgage unless four conditions are met:

1. This is a one off
2. There is no other way
3. It makes sense
4. Spending is tackled


----------



## Buddyboy (3 Mar 2017)

Bronte said:


> Are Pepper subprime?  Not advisable.  Stay away from those boys.  And it's madness to pay off short term debt by adding it to your mortgage unless four conditions are met:
> 
> 1. This is a one off
> 2. There is no other way
> ...


and if I may add
5. You pay off the new debt (60K) over the same time frame as you were paying it off, thus availing of the lower interest rate, but not increasing the timeframe.


----------



## Bronte (3 Mar 2017)

Excellent suggestion.  You could do that if it were a variable rate, by overpaying.  But I very much doubt anyone ever does it.


----------



## Buddyboy (3 Mar 2017)

Bronte,
I'm of the same mind-set as you. When I hear "equity release" I try to explain to people that it is another name for a *loan*, with your house as security.


----------



## Purple (16 Mar 2017)

Daithí Lacha said:


> thanks for the replies - will have a look at pepper and downsizing


If you are looking at downsizing then you don't need to go near a sub-prime lender. That should be an absolute last resort.


----------

