Is Equity release a myth or is it just me?

Hello there,

First time here so bare with me.

My question is this.

I own a house that has been recently valued at €340,000. My mortgage (annuity) as it stands is €165,000. I am currently living with my parents and renting out the property I own. €1050 pm in rent. My current mortgage is costing roughly €800 pm.

I have applied to my bank (BOS) to release the equity that is in the house up to 85% of the value and change the mortgage to an interest only over thirty years which would roughly cost me the same amount that I am paying now taking into consideration the extra amount.

I have been with BOS for the last four years with no problems whatsoever regarding payments. I have recently cleared all personal loan/credit card/ overdraft debt. I've been saving regularly over the last 5-6 years SSIA/ company bonuses to share schemes etc.

My broker has been told that BOS cannot at this time release the equity as they are currently investing massively in Ireland with the acquasition of the old EBS branches. Does this sound right? What are my options?

(Hoping to invest extra cash in property)

Thanks in advance.

Geldof said:

My broker has been told that BOS cannot at this time release the equity as they are currently investing massively in Ireland with the acquasition of the old EBS branches. Does this sound right? What are my options?

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I would have thought that a bank with a parent the size of BOS would have adequate capital to fund a branch expansion without squeezing their capital so much that it would curtail their lending ability so it sounds a little unlikely.

I presume the mention of EBS branches was a typo of ESB?

It sounds a bit odd to me. I wonder are they turning you down because your salary is not high enough?

There are loads of mortgage providers out there, so shop around.

Brendan

Sorry yep ESB was my intention. OKay will give the shop around route a go. Will keep you informed.

Thanks.

dam099 said:

I would have thought that a bank with a parent the size of BOS would have adequate capital to fund a branch expansion without squeezing their capital so much that it would curtail their lending ability so it sounds a little unlikely.

I presume the mention of EBS branches was a typo of ESB?

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And not forgetting that the parent of BOS is the HBOS group with a market cap of around 39 billion stg so I would say to the op that there is no chance that BOS are curtailing their loan book - quite the opposite I would have thought. Do as Brendan suggests and shop around.