Switching equity release loan

[sinmcg]

Hi can someone please advise me. I am buying a house for my Mam whose own house was repossessed last August. I am mortgage approved with Finance Ireland - (150,000 equity release in my own home over 16 years) , and (150,000 buy to let mortgage over 24 years). Current rates with Finance Ireland are enormous. 5.5% on the equity release, and 5.84 on the buy to let. I have a deposit on a house and have no option but to go ahead as my Mam needs somewhere to live. I approached BOI and PTSB and they won’t release equity in my own home to buy another house. My question is if I don’t fix with Finance Ireland, can I switch the equity release loan after 12 months? Is it treated as a regular mortgage? BOI said that the normal rules did not apply to switching equity release loans?? If I know I can switch in 12 months and I won’t be tied to Finance Ireland forever I’ll feel a bit better about going ahead. Thank you

 

[NoRegretsCoyote]

BOI said that the normal rules did not apply to switching equity release loans??

I've no direct experience but I would imagine at a year down the line a potential switch for the mortgage secured on your PPR looks no different than a regular mortgage of €150k. For switching they would look at the usual criteria such as age, income, house value, etc. I would imagine that having a BTL mortgage as well would reduce their appetite as well to accept a switch.

A mortgage broker could give good advice perhaps.

 

[sinmcg]

Thanks so much for your advice, but why do you think the BTL mortgage might put a bank off allowing me to switch the equity release mortgage? If repayments see made on both over the 12 months, and there are no issues with income etc I’m not sure why one would effect the other. Thanks again