Equity Release

Hi,

We were considering releasing some equity in our home. Current Mortgage is 80K, and we are looking to release about 80K also, giving us a total mortgage of 160K, our life cover is only valued at around 128K so will need to sort something to satisy the bank for the difference of 32K.

Should we increase our life cover or just take out a mortgage protection policy on the diff of 32K ? We plan to pay off the 80K over the next few years.

Thanks for any help.

Probably best just getting a Mortgage protection Policy - Anyone else got thoughts on this ?

Depends on what the Bank says.. if they ask the minimum you might need is either level term or reducing balance straight life cover. Tell them that you intend - as many do - to reduce the equity release part reasonably fast.

You cannot increase or decrease the sum insured on a mortgage protection policy. You will have to cancel your present policy and take out a new MP policy for the €160KJohno

you can simply buy the increase .. and you do not have to cancel. Its not clear that the Bank have even asked for it yet