Releasing equity on PPR to buy abroad

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geecee

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Hi All
I currently owe 210K (AIB Tracker)on a property worth ~350K

I am interested in releasing 40K of equity from my property in order to buy a property abroad (but thats for another thread!)
Earnings here of around 57K - so don't think the bank will have any problem giving me the extra money?

How do i go about getting releasing this 40K?
Is it even possible?
I won't be using the overseas property in any way as colateral, neither is it an investment property. Its a leisure property!

I know i can phone the bank... but want to check the facts here first.

Once its approved do I have a set time to draw the money down?
Can i simply lodge the money to my current account... and then transfer the money to my overseas bank account when i find the place thats right for me?

What about if i find nothing, can i just give them the money back, reduce my mortgage and pay the interest that the 40K accrued when it was in my current account?

Thanks in Advance
Geecee
 
I don't see why this was moved?
It was relating directly to my PPR mortgage and not buying property overseas...
Mods??
 
geecee said:
Hi All
I currently owe 210K (AIB Tracker)on a property worth ~350K

I am interested in releasing 40K of equity from my property in order to buy a property abroad (but thats for another thread!)
Earnings here of around 57K - so don't think the bank will have any problem giving me the extra money?

How do i go about getting releasing this 40K?
Is it even possible?
I won't be using the overseas property in any way as colateral, neither is it an investment property. Its a leisure property!

I know i can phone the bank... but want to check the facts here first.

Once its approved do I have a set time to draw the money down?
Can i simply lodge the money to my current account... and then transfer the money to my overseas bank account when i find the place thats right for me?

What about if i find nothing, can i just give them the money back, reduce my mortgage and pay the interest that the 40K accrued when it was in my current account?

Thanks in Advance
Geecee
Click to expand...


Very easy to do, many people do it to purchase overseas. Before you do it do a projection for a year or two in the future factoring in a hike in interest rates, and and rental income you think you might receive. Just so that you know in the worse case scenario you can still afford to repay all your loans.

A friend of mine Michael Corcoran is a broker who specialises in equity release 00353863819444 is his mobile. He's in Maynooth. I would check what rate and setup cost you get from your bank, and then compare it to someone like him.
If you call your bank dont be afraid to query the rate they are giving and ask for reductions. Also ask them to waive setup fees because you are a good customer etc etc.they might not budge, but if you are a good customer they should do.
 
Yes its possible to do. You could apply directly to your lender or talk to a broker (or two).

Just a few things......

- Loan offers are usually valid for up to six months. However rates will be subject to change. Read the T&Cs of your offer carefully.
- It might help your application if you had a location in mind. It doesn't have to be a specific address.
- Rental income may be taken into account when assessing so you might want to consider the option of letting it as well as being for personal use. It might be a good idea to have an estimate of the rental income you could hope to achieve.
- Its probably not a great idea to drawdown funds without knowing if they are needed. It might be better to have everything ready to drawdown to avoid delays if/when the property is found.
- Lenders may make it a condition of the offer that a copy of the contract is submitted prior to drawdown.
 
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