Releasing money from parents home

Hi everyone

First time poster so would really appreciate any advice or opinion.

My mam owns her house, currently worth approx €150k, she wants to sign it over to us so that we could release equity from it in order to help us with our first home and some other things. We would be hoping to get €50k out of it by taking a mortgage on it for that amount.
I would want my mam to stay there for as long as she wants to with a view to her perhaps someday coming to live with us but always having the option to stay in her own home if she so wishes.
Now for the second part of my question, I unfortunately a few years ago had an issue with a Halifax loan which I struggled to repay and it affected my ICB, Loan payments are almost finished but it will show on my ICB for at least another 3 years. Our financial situation now with my husband is very secure and we would have absolutely no concerns about repaying the €50k but can he take a mortgage on the house by himself even if the deeds are in both names? He would have no problem getting a €50k, I think anyway!
Any advice or direction for us would be great. My mam is happy to do it but I want to make sure it’s airtight for her and for us.

Thanks in advance

So you couldn't repay the last loan you took out and now you want to borrow against your mother's house? (I presume you thought you could manage the previous loan too). Not trying to be unhelpful, but it sounds far from airtight and in fact is a huge risk to your mother, with all the potential downside falling on her. I reckon she'd be stark raving bonkers to get into this.

I don't think any bank will go for this anyway, you basically are looking to release equity (which really is just a fancy term for borrow) against a house that will have a right of residence on it. For a bank to even consider it and I personally don't think they will they would need your mother to join in the mortgage more than likely and that sort of messing died with the tiger. You are effectively looking to borrow 100% of a purchase price for a new property and that also died with the tiger.

This is before you even deal with the issue of your ICB. I have one daughter who I love to bits but I would not do this for her, far too risky and you are putting the roof over her head at risk, she may not be fully aware of the risks involved but many the sad story of similar transactions were left behind when the tide went out on the boom!

I couldn’t repay that loan at that time as I was made redundant but I always communicated with the company and paid what I could, that loan will be paid in full with interest next month. I have no other borrowing or debt of any kind nor does my husband.
I understand the concern for my mother but I can absolutely assure you that I won’t do anything to put her home at risk. I don’t want to borrow €150k it’s €50k max which isn’t the value of any property??
Thanks for the info relating to banks paid possibly not allowing it, it’s hekpful to know now if this option won’t work.

Ok I misunderstood, I thought you were borrowing the 50k as the balance or deposit on a new home on which you were getting a further mortgage as you mentioned it was to help with your first home. However as you don't have any existing debt then I don't know if you have a mortgage free home or what but either way I would certainly check with banks first before even considering letting your mother sign over the home.

As an aside none of the people who ended up putting their parents home at risk with similar borrowing previously when it was rife ever intended that to happen either but stuff happens!

It's 5 years after the loan clears that it falls from your ICB report.

Monbretia said:

Ok I misunderstood, I thought you were borrowing the 50k as the balance or deposit on a new home on which you were getting a further mortgage as you mentioned it was to help with your first home.

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Well, I had understood it exactly the same way.

OP, if you want meaningful advice, you will need to set out your circumstances / questions more clearly.

There are possible options available, but very few of them advisable in most scenarios.