Senior’s Equity Release Donegal

Senior’s Equity Release Product in Donegal | A Lifetime loan Letterkenny

Retirement. A time for relaxation, travel, and enjoying life’s finer moments. But with rising costs and uncertain pensions, achieving that dream retirement can feel financially out of reach. That’s where a lifetime loan also known as Senior’s Equity Release comes in.
This guide, specifically tailored for those over age 60, will delve into the ins and outs of Seniors Equity Release, helping you understand if it’s the right choice for your secure and vibrant post-retirement life.
You may have come across advertisements on TV, especially on the UK channels, showcasing how individuals of a specific age can tap into the equity of their homes to support their retirement lifestyle or, as the ads suggest, access the “bank of Mum and Dad.” Prior to making a decision on this avenue, it is crucial to have a clear understanding of the options available to you.

Happy Senior Couple in side their Donegal Home

What is Senior’s Equity Release?

Imagine accessing a cash lump sum while continuing to comfortably live in your own home. That’s the essence of a Lifetime Loan. You borrow against the value of your home, releasing the built-up equity and unlocking its financial potential.

Why Apply for Lifetime Loan?

  • Supplement your income: Boost your pension, travel the world, pursue hobbies, or support family – the decision is yours.
  • Stay in your beloved home: No downsizing or relocation. Take delight in the ease and familiarity of your own space.
  • Maintain independence: Live life on your terms, free from financial constraints.
  • Plan for the future: Secure your financial future and face later years with confidence.
  • Fund medical expenses or stay at home care: Know you have financial freedom to fund these costs.

Seeking guidance from a  Trusted Qualified Financial Advisor like Find a Mortgage, is essential. In Ireland, the only option presently available for later-life finance is a Lifetime Loan.

Senior’s Equity Release / Lifetime Loans in Donegal

In A Nutshell

  • Lifetime loans allow you to release the cash locked in your home.
  • The funds can be used for whatever purpose you choose.
  • A lifetime loan is secured against your home, just the same as any other mortgage.
  • Senior’s Equity Release allows you to stay in your own home until you die or move into permanent care.

Understanding Senior Equity Release / Lifetime Loans for Donegal:

The only Equity Release product currently available in Donegal is a Lifetime Loan. Here’s what you need to know:

  • Borrowing: The amount of equity you release is based on your age and property value. You will receive these funds a lump sum.
  • Interest accrual: You don’t have to make monthly repayments. Interest is compounded and rolls up with the loan, increasing your outstanding balance over time. You can choose to make monthly repayments to help reduce the interest charge on the loan. You can use the calculator, see over, to calculate the amount you can release.
  • Repayment: The facility must be repaid, (including the accumulated interest), within 12 months of moving into long-term care, or passing away. Or when the property is sold.

Important Note: Senior’s Equity Release comes with its own set of considerations. Seeking independent financial advice from a Trusted Qualified Financial Advisor (QFA) like Find A Mortgage is crucial before making any decisions.

Eligibility for a Senior’s Equity Release facility:

To unlock your home’s equity through a Lifetime Loan, you need to meet these criteria:

    • The Age Requirement:

      • You, and any other homeowners named on the property deed, must be over 60 years old.

      Your Donegal Home:

      • Your property must be:
        • Located in County Donegal, Ireland.
        • Your primary residence is the place where you spend most of your time.
        • In good condition and structurally sound.
        • Worth at least €250,000 (minimum property value specifically for Donegal).

      Ownership and Loan Agreement:

      • All homeowners named on the property deed must be borrowers and sign the loan agreement.

      Existing Mortgages:

      • Any existing mortgage on the property must be paid off using your savings or the proceeds from the Lifetime Loan.

      Keep in Mind:

      • Properties in Donegal valued below €250,000 may have fewer loan options available.
      • It’s always best to compare lenders and explore your options before making a decision.

Types of Properties Not Suitable:

  • Holiday homes
  • Investment Properties
  • Properties valued primarily for development potential
  • Homes in poor condition
  • Very Isolated rural properties
  • Commercial properties
  • Farmhouses with inseparable land value
  • Period homes or non-standard residences

In Summary:

Before tapping into your home’s equity, ensure you and your property meet the eligibility criteria. Carefully consider the implications and seek independent Seniors Equity Release Mortgage advice to make informed decisions about your future.

How Much Can You Release?

The amount you can access depends on two factors:

  • Age: The older you are, the more equity you can unlock.
  • Property Value: Higher property value translates to a larger potential loan amount.

For example, a 75-year-old with a €300,000 property could release up to €90,000 (30% of the value), while a couple where one is 75 and the other 72 could access up to €81,000 (27% of the value).

What Is Seniors Equity Release Donegal Red Text on White Board hanged on a Sky Blue wall, White Stool on the side

The Application Process:

  • Get an indicative quote: Speak with Find A Mortgage for a personalised estimate based on your situation.
  • Discuss with family: It’s crucial to involve your family in this decision, as it could impact them later.
  • Receive financial advice: We strongly recommend seeking guidance from a Trusted Advisor like Find a Mortgage.
  • Second conversation: The lender will present their recommendation and provide a personalised report for you to consider.
  • Paperwork: If you proceed, the lender will gather necessary documents, including a property valuation and legal paperwork.
  • Approval and Signatures: Upon approval, you’ll receive a Letter of Approval outlining the terms and ask for your confirmation. Your solicitor will also receive a copy of the approval. 
  • Solicitors: Engage a solicitor for independent legal advice as required by the plan.
  • Completion and funds: Typically, the process takes 16-20 weeks for funds to be released. Funds are released through your solicitor.

Financial Insight

This type of plan has proven very controversial in the Irish Market in the past. This facility is not suitable for everyone,  We recommend you involve your family in the discussion. We also advise seeking advice from a Trusted Financial Advisor.

What is a Lifetime loan for Seniors Equity Release in Donegal?

A Lifetime loan is where you take a loan secured against on your home. You borrow against the value of your home The lender will receive the relevant mortgage balance + interest from the sale of your home when you move into long-term care or die.
A Lifetime loan enables you to receive a cash lump sum, whilst allowing you to remain in your property, normally there will not be a monthly payment, the interest is rolled up and the outstanding balance paid off by your estate when you die or when the property is sold after you move into long term care. You can pay back up to 10% of the loan amount in any year to reduce the compounding interest charges. Repayment above 10% of the loan amount could trigger an early repayment charge in the first 10 years.

Staying in Your Home

A Lifetime Loan could ensure that you can reside in your cherished home for the entirety of your life or until the point when you transition into long-term care, at which time the plan concludes and must be repaid within 12 months.

Early Repayment Charge (ERC)

Due to the fixed-rate nature of this product, any loan repayments made prior to the stipulated time will result in unforeseen costs for the lender. An Early Repayment Charge (ERC) will only be applicable if you repay part or the entire loan within the initial 10 years of its inception. The charge is triggered if interest rates are lower at the time of repayment compared to when the loan was initiated, and you do not qualify for any exemptions outlined below. In such instances, an ERC may occur if you:

  • Repay over 10% of the original loan balance in any given year within the first 10 years.
  • Voluntarily repay the entire loan balance within the initial 10-year period.

For more details on the Early Repayment Charge, refer to the “Can I make Monthly repayments” FAQ section below.

What is the Maximum Loan Amount

The maximum loan amount is determined by both the property’s value and your age at the initiation of the loan, as illustrated in the table. For instance, if you’re 60 years old, you can borrow 15% of the property’s value. In contrast, if you are 85 or above, you have the potential to borrow up to 40%.

Age % allowed*Age % allowed*Age % allowed*
6015%6924%7833%
6116%7025%7934%
6217%7126%8035%
6318%7227%8136%
6419%7328%8237%
6520%7429%8338%
6621%7530%8439%
6722%7631%8540%
6823%7732%

*This depends on the value of your property and your age at the start of the loan (see table).
For example if you are 60 you may borrow 15% of the value of the property but if you are 85 or older you may borrow 40%.

Overall Maximum

Irrespective of age or property value, the overall maximum amount that can be borrowed is €500,000.
At its absolute discretion (for example where it is difficult to accurately value a property) your lender may make a loan offer at a lower amount than indicated by the LTV table. Use the table above to see how much you could borrow based on your own age and house value. Remember for a joint application, the youngest age is used for the lending amount.

A couple of examples:

A 75 year old with a property valued at €300,000.00 can release up to €90,000.00 (30% of the value)

OR

A couple one person 75 year old and the other person aged 72 with a property valued at €300,000.00 can release up to €81,000 (27% of value) Lending amount is based on the youngest person.

Concerns and Considerations:
  • Impact on Inheritance: Equity Release reduces the value of your estate, potentially affecting inheritances.
  • Long-term debt: The outstanding loan, with accumulated interest, can grow significantly over time.
  • Moving in the future: Your options for downsizing or moving into care may be affected due to the outstanding loan amount
    Protecting Your Family and Future:
    • Open communication: Involve your family in the decision process and discuss the potential impact on inheritance.
    • Estate planning: Consult a financial advisor to adjust your will and estate plan to account for the lifetime loan.
    • Future care needs: Consider potential long-term care needs and the flexibility you’ll have in moving to assisted living facilities with an outstanding loan.
    Seeking Trusted Guidance and Support:
    • Independent financial advice: Engage a QFA specialising in Senior’s Equity Release to navigate the complexities and receive personalised recommendations.
    • Legal counsel: You need to engage a solicitor to ensure you understand the legal implications and terms of your agreement.
    • Support groups and resources: Seek out networks and organisations offering support and information to Irish seniors considering Equity Release.

    Remember: Equity Release is a powerful tool, but it’s not a “one-size-fits-all” solution. Careful planning, informed decision-making, and seeking expert guidance are key to unlocking your home’s potential and securing a financially secure and fulfilling retirement in Letterkenny.

    How to Apply?

    The process is relatively simple, here are the steps that will be taken.

    Get an Indicative Quotation 

    You can receive an indicative quotation by giving us a call. We’re happy to walk you through this if you require further detail or would like us to do another quotation for you. Email us, or simply give Find a Mortage a call and we’ll be happy to arrange an appointment with one of our advisors as soon as possible.

    How to Apply Senior's Equity Release Donegal Text on White Paper on Clipboard with Illustrations of House, Checklist & Happy Couple Holding Euro Bills

    Before taking out an equity release loan

    Talk to your family. Your decision could affect them down the line. Seek independent financial advice from a qualified advisor (QFA). We can answer your questions and strongly recommend consulting us to make sure this facility is right for you. findamortgage.ie.

    The lender will assign you a dedicated advisor who will:
    • Recommend a loan option in writing.
    • Answer your questions.
    • Provide a personalised report for you to consider.

    If you proceed:

    • Your advisor will gather necessary documents. Your lenders will organise a property valuation and the legal paperwork.
    • They will submit your application for approval.

    Approval and next steps:

    • If approved, you’ll receive a Letter of Approval outlining the terms and asking for your confirmation.
    • You’ll need to choose a solicitor for independent legal advice, as required by the plan.

    Completion and getting your funds:

    • It typically takes 16-20 weeks to complete the process and receive your loan funds.

      Recommendation when thinking for a Senior’s Equity Release in Letterkenny

      The best recommendation is by far to get guidance by giving us a call and we will be happy to discuss the options available and whether they are suitable for you or not.

      If you wish to book an appointment to go over Later Life Finance in more detail by all means reach out to us.

      Make an appointment with one of our mortgage advisors in your search for a Lifetime Loan in Donegal.  We are available to assist you with your concerns and worries.

      Contact findamortgage.ie in Letterkenny, Co Donegal, or by phone at 074 910 3938.

      Advice First Financial Service Ltd trading as Advice First Financial & Find a Mortgage is regulated by the Central Bank of Ireland.

      Frequently Asked Questions on Seniors Equity Release Life Time Mortgages

      What is equity release?

      Assuming there is equity in the property, i.e., the value of the property is greater than any mortgage outstanding, it is a financial solution that allows homeowners to raise money from their property as a lump sum.

      What is a lifetime loan?

      A Lifetime Loan is a mortgage loan secured against your home. You do not sell a share of your home. You borrow a cash sum using your house as security. You can use this money as you wish. This type of loan is designed to last for the rest of your life. There are no regular repayments to be made. It becomes repayable if you sell your home or after you die or permanently cease to reside in your home.

      What are the Equity Loan costs & fees in Buncrana & Donegal Town ?

      How do I find out if senior equity release is suitable for me?

      You should contact a Trusted Financial Advisor in the first instance, they will discuss all possible options and help you decide whether a senior’s equity release facility is the best option for your individual circumstances.

      How much can I release?

      The amount you can release depends on just 2 factors: your age(s) and the current open market value of your property.
      For example if you are 60 you may borrow 15% of the value of the property but if you are 85 or older you may borrow 40%.

      How long will it take to receive my money?

      We have found through our experience this is influenced greatly by your choice of solicitor. Subject to you appointing a solicitor who is experienced in Senior Equity Release Plans it is possible to receive your money within 16-20 weeks of application.

      What can I use the funds for?

      The funds are yours to do with as you wish, within reason. You will need to confirm what the funds are needed for.

      What happens if I still have a mortgage in Ballyshannon?

      If you have a current mortgage or any legal charge on the property this would need to be paid off from the money released, your solicitor will discharge this on the way through.

      Will I have to pay tax on the money raised?

      There is no tax to pay on funds raised from the value of your principal private residence, but if in doubt you should seek independent tax advice.

      Am I responsible for any charges relating to my Senior's Equity Release?

      There are some upfront costs which are laid out in detail as part of your full quotation. These may include the cost of your independent solicitor and property valuation amongst other items.

      Do I need to use a Qualified Financial Advisor?

      No, you do not need to engage a financial advisor, you can deal directly with the providers. But as with any mortgage we do recommend you discuss your options with a Trusted Financial Advisor, who will look at all options.

      Do I need a solicitor?

      Yes. As with any mortgage you must take independent legal advice when taking out a Lifetime Loan and engage a solicitor on your behalf to complete the lending

      Can I choose my own solicitor?

      Yes. You can choose your own solicitor to represent you when taking out a Lifetime Loan. If you don’t have a solicitor, we are happy to offer a recommendation.

      Will I still own my property Bundoran when I avail of an equity release?

      Absolutely, as with any mortgage your retain ownership of the property.

      What happens should I need to move into long term permanent care?

      The loan becomes repayable 12 months after you die or cease to reside in in the property. Unless there are other sources of funds to repay the loan, your home would have to be sold. The sale proceeds, after legal and selling costs have been deducted, will then be used to repay your outstanding loan balance.

      When your property is put up for sale, your lender must be notified of the sale price. If the sale price, less expected legal and selling costs, is likely to be lower than the outstanding loan balance, the lender may insist on a second, independent valuation at its cost. In the event of a dispute, a mediation process will be followed.

      What happens to my plan after I die?

      If you entered into the plan with a spouse or partner, upon the death of the first plan holder, you should let your lender know and send them a copy of the death certificate, so they can update their records. Upon death of the “last homeowner” the executors of your estate need to notify your lender and provide them with details of the solicitor dealing with the Estate. They will arrange for the property to be valued and placed on the open market. Once a sale is completed the proceeds will clear the outstanding balance of your loan.

      Can I make monthly repayment?

      Generally, you don’t make monthly repayment to this plan. But you can choose to make repayments up to 10% of the amount owed in that year. This will help reduce the compounding interest charge on your loan.

      Because this is a fixed rate product, if you make any loan repayments before you are required to, this will lead to unexpected costs for the lender (Seniors Money). This may trigger an Early Repayment Charge

      An Early Repayment Charge (ERC)

      An Early Repayment Charge will only then arise if you repay some or all of the loan within 10 years of taking it out. Even then an ERC will only arise if interest rates are lower than when the loan was taken out and if you are not eligible for one of the exemptions described below.

      In such circumstances, an ERC may arise if you:

      • repay more than 10% of the original loan balance in any one year within 10 years of taking it out  or,
      • voluntarily repay the full loan balance within 10 years of taking it out

       

      Time limit to ERC

      The ERC only applies to repayments made during the first 10 years*.

      • Any repayments made after 10 years are exempt from an ERC
      • For repayments made within 10 years, the ERC only applies to the remaining period to 10 Years

       

      Example: A loan repaid 6 years after taken out will incur 4 years of ERC

      *If you are aged 78 or older when the loan commences, no ERC will arise after your 88th birthday. For example, if you are aged 80 when the loan is taken out and repay it 3 years later, the ERC would only apply to the remaining 5 years to your 88th birthday.

      No ERC if interest rates are higher

      No ERC will arise if interest rates when the repayment is made are higher than when the loan was taken out. This is determined by comparing:

      – A The 10 year Irish Government Bond rate at the time you took out the Lifetime Loan, with
      – B The 5 year Irish Government Bond at the date you are making the full repayment (or the nearest comparable rate most favourable to you)

      If B is higher than A no ERC is payable.

       

      ERC Exemptions

      No ERC will arise when a loan is repaid in full or in part due to one of the following events:

      • Death of last Nominated Resident
      • Move to permanent long-term care of last Nominated Resident
      • Full repayment within 3 years of death or move to permanent long-term care of the first Nominated Resident
      • Sale of the property
      • Repayment following demand by us in certain circumstances
      • After 10 years of taking out your Lifetime Loan
      • After your 88th birthday e.g. If you are aged 80 when the loan is taken out and you repay it 3 years later, the ERC would only apply to the remaining 5 years to your 88th birthday
      • For repayments made within 10 years, the ERC only applies to the remaining period to 10 years e.g. a loan repaid 7 years after taken out will incur 3 years of ERC

      How the ERC is calculated

      No ERC will be charged if interest rates are higher than or equal to when the loan was taken out. This is determined by comparing:

      • The 10-year Irish Government Bond rate at the time you took out the Lifetime Loan, with
      • The Irish Government Bond rate for remaining period in respect of which the ERC is payable at the date you are making the repayment (or the nearest comparable rate most favourable to you)

      Can I sell my Lifford property and move to a different property?

      You remain the owner of the house, so you are entitled to sell it and move to another one at any time. However, a number of practical issues arise:

      • If you sell the house the loan becomes due for repayment.
      • You may request to transfer your loan to the new house instead, subject to the usual lending criteria (age and house value), but you must tell your lender in advance. If the new property is worth less than the original one you may be required to repay some of the loan.
      • If there would be insufficient funds to repay the loan after selling the house and buying a new one, you may not be able to move unless you have alternative funds to repay the loan (or part of the loan in a transfer situation).

      It is best that you contact your advisor or lender first if you are thinking of moving. A new loan application will be required, including a new Set Up fee and new legal fees.

      Do I need to consult my family before proceeding?

      This is a personal and individual matter for each homeowner. You do not have to involve your family but we recommend you discuss your plans with them before making an application. Your qualified financial advisor may also advice that some of your family members attend the meeting with you.

      Can I leave some inheritance?

      Yes. At the outset you borrow a percentage of the value of your home, any money remaining after the outstanding balance of the loan + any interest charged is cleared can form part of your estate upon death.

      What happens when I no longer live in my home in Moville?

      The loan becomes repayable 12 months after you die or cease to reside in in the property. Unless there are other sources of funds to repay the loan, your home would have to be sold. The sale proceeds, after legal and selling costs have been deducted, will then be used to repay your outstanding loan balance.

      When your property is put up for sale, the lender must be notified of the sale price. If the sale price, less expected legal and selling costs, is likely to be lower than the outstanding loan balance, the lender may insist on a second, independent valuation at its cost. In the event of a dispute, a mediation process will be followed.

      Can I end the plan early and clear the Life Time Loan

      You can at any stage clear the outstanding balance but if you so in the first 10 years of the plan it may tigger An Early Repayment Charge (ERC)

      Because this is a fixed rate product, if you make any loan repayments before you are required to, this will lead to unexpected costs for the lender. This may trigger an Early Repayment Charge

      An Early Repayment Charge (ERC)

      An Early Repayment Charge will only then arise if you repay some or all of the loan within 10 years of taking it out. Even then an ERC will only arise if interest rates are lower than when the loan was taken out and if you are not eligible for one of the exemptions described below.

      In such circumstances, an ERC may arise if you:

      • repay more than 10% of the original loan balance in any one year within 10 years of taking it out  or,
      • voluntarily repay the full loan balance within 10 years of taking it out

       

      Time limit to ERC

      The ERC only applies to repayments made during the first 10 years*.

      • Any repayments made after 10 years are exempt from an ERC
      • For repayments made within 10 years, the ERC only applies to the remaining period to 10 Years

       

      Example: A loan repaid 6 years after taken out will incur 4 years of ERC

      *If you are aged 78 or older when the loan commences, no ERC will arise after your 88th birthday. For example, if you are aged 80 when the loan is taken out and repay it 3 years later, the ERC would only apply to the remaining 5 years to your 88th birthday.

      No ERC if interest rates are higher

      No ERC will arise if interest rates when the repayment is made are higher than when the loan was taken out. This is determined by comparing:

      – A The 10 year Irish Government Bond rate at the time you took out the Lifetime Loan, with
      – B The 5 year Irish Government Bond at the date you are making the full repayment (or the nearest comparable rate most favourable to you)

      If B is higher than A no ERC is payable.

       

      ERC Exemptions

      No ERC will arise when a loan is repaid in full or in part due to one of the following events:

      • Death of last Nominated Resident
      • Move to permanent long-term care of last Nominated Resident
      • Full repayment within 3 years of death or move to permanent long-term care of the first Nominated Resident
      • Sale of the property
      • Repayment following demand by us in certain circumstances
      • After 10 years of taking out your Lifetime Loan
      • After your 88th birthday e.g. If you are aged 80 when the loan is taken out and you repay it 3 years later, the ERC would only apply to the remaining 5 years to your 88th birthday
      • For repayments made within 10 years, the ERC only applies to the remaining period to 10 years e.g. a loan repaid 7 years after taken out will incur 3 years of ERC

      How the ERC is calculated

      No ERC will be charged if interest rates are higher than or equal to when the loan was taken out. This is determined by comparing:

      • The 10-year Irish Government Bond rate at the time you took out the Lifetime Loan, with
      • The Irish Government Bond rate for remaining period in respect of which the ERC is payable at the date you are making the repayment (or the nearest comparable rate most favourable to you)

      Who is responsible for maintenance and insurance?

      As you are living in the home, you remain responsible for the day-to-day maintenance of your property (for example, decorating and repairs) together with the property insurance and all bills and taxes.

      What happens if maintenance work or alterations are needed to my home in Convoy?

      It is the homeowner’s responsibility to maintain the property to a reasonable standard. If you require any alterations to your property, you must firstly obtain Home Plus’s written consent, which will not be unreasonably withheld. Any request must be sent in writing with full details of the works involved prior to them being undertaken. Home Plus will then decide and notify you in writing where they consent to such works. If you are in any doubt about the requirements here, then feel free to call or email Home Plus and one of their team will be happy to help you. Please note: Minor decoration or repainting does not require a request. Only when there are material alterations being made, do they require our consent.

      Other Residents

      Other residents

      Friends or family may live with you but if they are not Nominated Residents they will have no right under the Lifetime Loan to remain in the property after you (the second of you where there are two Nominated Residents) die or cease to reside in your property.

      Depending on the age and circumstances of these other residents, it may not be possible to get a Lifetime Loan on the property or these other residents may be required to obtain their own independent legal advice and sign a waiver acknowledging the relevant loan conditions.

      The Nominated Residents are obliged to complete an Annual Questionnaire to inform the lender of any changes in circumstances which might affect the loan.  This includes a question on whether there are any changes in who is resident in the property.

      It is a condition of the Lifetime Loan that you do not lease all or part of your property to another party without the lender’s prior approval.

      What if a relative or carer wants to live with me in Moville?

      Residents in the home

      A Lifetime Loan is primarily intended for singles or couples living without other people in residence with them. Life can be more complicated than that, so you need to know the implications if there are other residents in the home.

      Nominated Residents

      The Lifetime Loan allows a maximum of two residents to be classed as ‘Nominated Residents’:

      • Only Nominated Residents have the right to live in the property for as long as they live or as long as they wish without repaying the loan.
      • Where there is only one Nominated Resident, he or she must be at least 60 years of age.
      • Where there are two Nominated Residents, the younger of you must be at least 60 years of age.

      Other residents

      Friends or family may live with you but if they are not Nominated Residents, they will have no right under the Lifetime Loan to remain in the property after you (the second of you where there are two Nominated Residents) die or cease to reside in your property.

      Depending on the age and circumstances of these other residents, it may not be possible to get a Lifetime Loan on the property or these other residents may be required to obtain their own independent legal advice and sign a waiver acknowledging the relevant loan conditions.

      The Nominated Residents are obliged to complete an Annual Questionnaire to inform the lender of any changes in circumstances which might affect the loan.  This includes a question on whether there are any changes in who is resident in the property.

      It is a condition of the Lifetime Loan that you do not lease all or part of your property to another party without the lender’s prior approval.

      Can I top up my loan?

      Borrowing more later

      An existing Lifetime Loan can’t be ‘topped up’. Instead, you would have to take out a new, larger loan and repay the old loan using some of the proceeds of the new loan.
      The interest rate for the new loan would be the interest rate on offer at the time. This might be higher or lower than the rate on the old loan.

      Borrowing More

      If your future circumstances change, and you would like to borrow more, this might be possible if the combination of your future age and house value would qualify you for an amount exceeding your current loan balance.
      For example, if you initially borrowed €50,000 and this grew over time to €70,000, you could apply for a new loan in excess of €70,000 if your then age and property value supported it.

      The old loan would have to be repaid and you would receive the difference. For example, if the new loan was for €100,000 you would have to use €70,000 to repay the original loan and would receive a net amount of €30,000 with a new starting loan balance of €100,000.

      Loan Balance€70,000
      New Loand  Starting Balance€100,000
      Extra amount released:€30,000 (after repaying the original loan)

       The process would be the same as for a new loan application, involving a new Client Fact Find, property valuation, full legal process and the payment of any set-up fees required for new loans.

      There is no guarantee that you will be approved for a new loan at a future date. The maximum amount of your proposed new Lifetime Loan will be determined based on your property value and your age at the date of the new application.

      Is my pension affected?

      Possibly, but you should check all this information with your qualified financial advisor and your local welfare officer.

      Does my plan change if my property rises in value?

      Your plan does not change based on a rise in property value.

      Does my plan change if my property decreases in value?

      Your plan does not change based on a fall in property value.

      Legal Warnings: The following warnings contain important and useful information so please read them carefully.

      WARNING: WHILE NO INTEREST IS PAYABLE DURING THE PERIOD OF THE MORTGAGE, THE INTEREST IS COMPOUNDED ON A MONTHLY BASIS AND IS PAYABLE IN FULL IN CIRCUMSTANCES SUCH AS DEATH, PERMANENT VACATION OR SALE OF THE PROPERTY.

      WARNING: PURCHASING THIS PRODUCT MAY NEGATIVELY IMPACT ON YOUR ABILITY TO FUND FUTURE NEEDS.

      WARNING: YOUR HOME IS AT RISK IF YOU DO NOT KEEP UP PAYMENTS ON A MORTGAGE OR ANY OTHER LOAN SECURED ON IT.

      If your Lifetime Loan is being used for debt consolidation purposes:

      WARNING: THIS NEW LOAN MAY TAKE LONGER TO PAY OFF THAN YOUR PREVIOUS LOANS. THIS MEANS THAT YOU MAY PAY MORE THAN IF YOU PAID OVER A SHORTER TERM.