Equity Release Mortgages

Equity release mortgage is a way to borrow cash tied up in a property without selling your home. Equity is the part of a property you own. So, if you have a mortgage, the equity is the difference between your home’s current value and what’s left to pay on the mortgage.

Equity is the difference between the current value of your house and the amount you owe on it. For example, if your home is worth €400,000 and your mortgage is €100,000, then you have equity in your property of €300,000.

You can also remortgage for home improvements by releasing equity you’ve built up over the time you’ve owned your home. It’s a popular way to fund home improvements in Ireland. It can take several weeks though, and could include exit fees if you move to a new lender, so you should factor this into your plans. You’ll always own your own home though, and you could use the money to increase the value of your home.

Fees and charges

Depending on which scheme you choose, you may have to pay:

• ⦾ a valuation fee. The amount of money you can get through an equity release scheme depends on the value of your home. So it is
• ⦾ important to make sure the valuation is independent – you may also want to get a second valuation yourself
• ⦾ legal fees and costs
• ⦾ a fee for the independent legal and financial advice you need to protect your interests
• an administration fee

Some companies have a fixed ‘set-up’ fee to cover the legal and valuation fees. You may need to put aside between €1,500 and €3,000 to cover these costs. Some providers may allow you to pay fees through your lifetime mortgage so that you do not need to have this money up front. However, if you pay fees through your lifetime mortgage, you will pay interest on them, meaning they will cost you more in the long run.

Get In Touch to Learn More

Would you like to talk to someone you can trust, and who will give you the best advice based on your circumstances? If so, contact MC Financial today on michael@mcfinancial.ie or call MC Financial anytime on 01-822 8022 or 087 932 1882.