OAP trying to secure loan

Hi All,

I am asking this on behalf my mother. She is a Widower in her late 60's and has serious mobility issues. She is a homeowner with no mortgage. No bank loans or savings. She needs to be on the ground floor to have easy access to toilet and negate the challenge of trying to get up a stairs. In the last couple of years I have had OT reports done for her to start the process of getting a grant (of Fingal County Council). The grant if we where successful only goes so far and there is a shortfall of about about 35k to build a one bedroom extension with wet room facilities.

Are there any institutions that would give my mother credit for a share in the house (apologies I don't have the right terminology).

I am just trying to see can she leverage her only asset to secure funding so that she can make life easy for herself now. I am not in a position to borrow the money for her. Any help or advice is greatly appreciated.

Many Thanks

Hi,

What’s her income? Is it just the State Pension?

Regards,

Gordon

Gordon Gekko said:

Hi,

What’s her income? Is it just the State Pension?

Regards,

Gordon

Click to expand...

Hi Gordon,

Yes. State pension.

Thanks

The product is called an Equity Release, where you can get a mortgage that with no ongoing repayments and it is repaid on death usually from the sale of the house.

These are expensive and there are many concerns about them, but it may be what she needs.

Here is a newspaper article. https://www.irishtimes.com/business/ifg-launches-equity-release-loan-for-elderly-1.999671

Would selling up and buying a smaller (maybe single floor) property be a better and more cost beneficial option?

Sixty Plus Finance have started doing them again

As Cremeegg says, they are expensive...well they will take a decent chunk of the value of home to give your mum cash up front. It won't cost her anything as the interest rolls up over the years and is taken from the sale of the house when she dies.

Reverse mortgages have very bad reputations in Ireland as it is seen as taking the kids inheritance. But there are many instances of elderly people in need of cash and the only asset they have is there home. If their children can't help them financially, being able to access some of the value of their home is a good thing.


Steven
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Seniors Money has a very good calculator.

Put in your mother's age & house value into the calculator and it shows the max that can be borrowed, choose the amount you want and it shows what will likely be owed in 5, 10 years etc.

They say they are not currently lending but you can go on their waiting list, they hope to resume lending later this year or early 2021.

https://www.seniorsmoney.ie/new-loans/lifetime-loan-calculator/

Hi All, Thanks a million for all the replies. I really appreciate them.

Are there any of the usual banks/credit unions that would offer this type of loan? Or even a state level (HSE/councils) that do this?

I'm surprised that there is not a solution similar to the loan under the Fair Deal Scheme where the HSE get a charging order on the property ensuring they get paid from the estate

No there isn't, banks/credit unions will look for ability to repay which just won't be there with just a state pension. There was talks of bringing in something similar to Fair Deal scheme where people could remain in their home and get help with paying for home care, don't know if renovations were included in it but it hasn't appeared yet anyway!

We went through the same things some time back, got the grant but had to pay roughly same again ourselves, luckily between a few of us we could manage it.

Is downsizing an option at all?

My sister-in-law’s aunt sold her house and moved into a more suitable apartment but it’s in a sort of old folks’ community living thing that’s linked to the State in some way.

I’m sorry that I don’t have more details.