Are you looking for equity release in Ireland?

Whilst there is an almost overwhelming amount of information available on equity release in the UK, it is harder to find out more about accessing these products in Ireland.

What Is Equity Release?

Equity release is a way of freeing up money tied up in what is probably your biggest asset: your home.

By taking out an equity release loan, you will be able to borrow against the value of your home.

Is that just a mortgage?

Almost, but there are two major differences:

• With an equity release loan, you will not need to make any payments in your lifetime (although you can if you want to).
• Even if you choose not to make any payments, you have the right to live in your home until you pass away or move into care.

This means that the loan is usually repaid from the proceeds of the sale of the property once the homeowner has passed away or moved into long-term care.

Is Equity Release Available in Ireland?

Yes, equity release is available in Ireland, though there are not many options to choose from.

This may change however, as equity release products have only recently been reintroduced to the Irish market.

What Are the 2 Types of Equity Release Loan Available in Ireland?

The two types of equity release loan available in Ireland are the lifetime loan and the home reversion plan.

A quick look at the difference between these two product types:

What is a Lifetime Loan?

A lifetime loan is a type of mortgage designed to last for the rest of your life — hence the name.

By securing a lifetime loan against your home, you may be able to benefit from it's value without having to sell it or rent it out.

You also will not need to make any loan payments, as the loan will only need to be repaid in full once you have moved into care or passed away and your home can be sold.

Where Can I Obtain a Lifetime Loan in Ireland?

In Ireland, you can obtain a lifetime loan through Seniors Money by applying through it's retail division, Spry Finance.

To qualify for one of these lifetime loans, you will need to:

• Be located in Ireland
• Be at least 60 years old (and if you are applying with a partner, you will both need to meet this requirement)
• Own a home worth at least €250,000 in Dublin or one worth at least €175,000 outside Dublin
• Use the property you wish to secure the loan against as your main residence

What is a Home Reversion Plan?

A home reversion plan is a type of equity release product that allows you sell a portion of your home to a provider in exchange for a cash sum.

In other words, it is not a loan like the lifetime loan mentioned above.

However, as with the lifetime loan, you will not have to move out of your house if you opt for a home reversion plan, as you will be granted the right to remain in your home for life.

Where Can I Obtain a Home Reversion Plan in Ireland?

To qualify for one of these home reversion plans, you must:

• Live in Ireland
• Be older than 55
• Own a home worth over €120,000

Now that you know where to find equity release plans in Ireland, it is important to take a moment to note the potential advantages and disadvantages of this type of product.

What Are the Pros and Cons of Equity Release?

The pros and cons of equity release include, on the one hand, the fact that you will not have to make monthly repayments and, on the other hand, the relatively high cost of the loan.

The advantages of equity release are:

• It is a way to free up money you would not otherwise be able to access.
• You will not have to make any monthly repayments.
• You will be able to remain in your home for as long as you wish.
• If you have opted for a lifetime loan, you will remain the sole owner of your home.

The drawbacks of equity release are:

• Equity release is an expensive way to borrow money, as interest rates are normally higher than ones you may find with traditional mortgages.
• The effect of compound interest on the loan amount and unpaid interest will see your debt increase significantly over the course of the loan.
• Equity release will diminish the size of the inheritance you are able to leave loved ones.
• You will not be able to secure any other loans against your home once you have taken out equity release.
• If you decide to repay your loan in full, you may face penalty charges.
• If you have chosen a home reversion plan, you will no longer be the sole owner of your home.
• If you have chosen a home reversion plan, you will be selling a portion of your home below market value.

Is It Safe to Take Out Equity Release in Ireland?

It is safe to take out equity release in Ireland as long as you are working with an authorised provider and you have understood the terms of your lifetime loan or home reversion plan.

Central Bank of Ireland Regulation

Both Irish equity release providers (Seniors Money through Spry Finance and Home Plus) are registered with the Central Bank of Ireland.

No Negative Equity Guarantee

If you are applying for a lifetime loan, make sure it includes a no negative equity guarantee, which will prevent your debt from overtaking the value of your home.

The good news is that Spry Finance offers this guarantee to it's lifetime loan clients.

Receiving Financial Advice

It is imperative to speak to a financial advisor when considering big decisions like applying for an equity release plan.

An advisor will be able to assess your unique circumstances and help you determine whether this type of product would be the most suitable option for you.

Always make sure you are speaking to a regulated financial advisor by consulting the Central Bank of Ireland's register.

How Much Money Can I Access Through Equity Release?

How much money you may be able to access through equity release will depend on your age and how much equity you have.

With a lifetime loan, you may be able to borrow between €20,000 and €500,000, depending on the factors listed above.

Speak to an advisor or broker if you would like to obtain a clearer idea of how much you may be able to access through equity release in Ireland.

If you are an Irish resident and you would like to find out approximately how much you could release, try out our free calculator.

Please note: Our Equity Release Calculator is only intended for use by homeowners living in England, Wales, Scotland, and Northern Ireland.

Ireland Equity Release

Common Questions

Conclusion

Equity release plans are available to Irish homeowners who wish to benefit from the value of their homes without having to move out or sell.

A lifetime loan or home reversion plan may be a good decision for you if your age or income status has prevented you from accessing a traditional mortgage.

If you are considering equity release, remember to speak to a qualified financial advisor and to inform your children, as this is a decision that will affect their inheritance.

Remember to be on the lookout for more possible expansion in the later-life lending industry, as equity release in Ireland is opening exciting possibilities for homeowners.

At SovereignBoss, our aim is to help homeowners arm themselves with the most up-to-date information when they are thinking about applying for equity release.