Releasing Equity

A

AnneBernadette

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We have €65.000 left on our mortgage and are over 60 years of age . We would like to be able to apply for equity release as we do not wish to downsize and house valued at €250.000. Is this possible and is it the best way to go?
 
You will need to speak with a bank but make sure you have all the information that they will likely ask to hand.
How much older than 60 are you. Some banks will only allow you to re-mortgage up to the age of 65/66 others will go to 70.
Are you working. You will need to satisfy the bank that you will be able to repay the mortgage.

Personally, I would avoid taking on additional debt if I expected to retire in the next few years.
You are nearly home free with the house. Why bring that risk of losing it into your lives now.
 
I could be wrong, but I don't think they are talking of re-mortgage or increasing debt. Equity release is a different vehicle for releasing equity in your home.
 
Laughahalla said:
You will need to speak with a bank but make sure you have all the information that they will likely ask to hand.
How much older than 60 are you. Some banks will only allow you to re-mortgage up to the age of 65/66 others will go to 70.
Are you working. You will need to satisfy the bank that you will be able to repay the mortgage.

Personally, I would avoid taking on additional debt if I expected to retire in the next few years.
You are nearly home free with the house. Why bring that risk of losing it into your lives now.
Click to expand...
I am just 60 and have retired but find the present mortage repayments too much which is why I would be interested in equity release but not sure if its done anymore
 
David_Dublin said:
I could be wrong, but I don't think they are talking of re-mortgage or increasing debt. Equity release is a different vehicle for releasing equity in your home.
Click to expand...

No matter what it is called it will be increasing their debt.
The money will also be secured against their home.
Why introduce risk at the (probable) end of your working life when they house is almost paid off.
 
AnneBernadette said:
I am just 60 and have retired but find the present mortgage repayments too much which is why I would be interested in equity release but not sure if its done anymore
Click to expand...

If you find the current payments too high then taking on more debt will not be the solution.
if i'm not mistaken , I think you are talking about remortgage to spread the term out longer to reduce payments or are you looking to release money so you can pay for day to day expenditures.
Do you really want to be paying off loans into your 70's. i'd avoid taking on more debt like the plague.

You are retired but very young, could you get a part time job to help bring in some money?
Could you cut some costs? e.g. There is about 150 Free to air channels. We cut out sky years ago and do not miss it one bit.
Do you change your electricity supplier every year. It'll all add up to a nice saving.
Shop in Lidl or Aldi - Groceries are about 20% less expensive than the other supermarkets.

Take a look at the money makeover section and put in all your income and outgoings and other relevant information.. You will be able to get some very good advice from people there.

if you get a chance, I'd also recommend you also take a listen to Dave Ramsey ,you'll find him on youtube or podcast. very interesting guy and gives very good advice.
 
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AnneBernadette said:
I am just 60 and have retired but find the present mortage repayments too much which is why I would be interested in equity release but not sure if its done anymore
Click to expand...
Then what you need is not equity release (borrowing more money) instead you need an extension of your mortgage. It would be helpful Anne if you could give us some of the numbers, mortgage, bank, interest rate, income. That way we can have an overview of your financial situation and give you better advise. Have a look at the Money Makeover Forum to see how it works.

Here is the link so you get an idea:

Money makeover

Budgeting and dealing with debt moved to Mortgage Arrears and Debt Forum .
askaboutmoney.com
 
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