Equity is the difference between the current value of your house and the amount you owe on it. Home equity release, on the face of it, is one possible solution for homeowners short on income but living in a large valuable home. As new liquidity rules have reduced the supply of bank lending, so insurers have stepped in, encouraged by generous regulatory treatment for annuity writers. The biggest barrier to downsizing as a financial solution is the emotional attachment we have to a familiar home and neighbourhood. The lender is Bank of Ireland Mortgages. My folks did this about 6 yrs ago, in their 60's. Many in their late 60s and 70s are equity rich but cash light. A typical mortgage to buy your home of €100,000 over 20 years with 240 monthly instalments costs €615.79 per month at 4.2% variable (Annual Percentage Rate of Charge (APRC) 4.3%). An equity release scheme is a scheme that allows you, based on the value of your asset, to receive either one lump sum payment or a series of payments over a period of time. “Seniors equity release products are here to stay and S.H.I.P. In common with other equity-release lenders such as Bank of Ireland, Seniors Money suspended lending during the credit crisis as funding dried up. It enables older property owners – over-55s – to borrow against the equity they have in their home. Equity release is a way for older people – the minimum age is usually 55, and sometimes 60 – to get cash out of their property without the need to move home. 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. Equity release. clearly has a wide choice of product options available to consumers in this rapidly growing segment of the financial market. In fact, over the last 12 months, 26% of Key’s equity release customers were single women, compared to just 13% of single men. Equity release mortgages (ERMs), also called lifetime mortgages, have played an increasing role in generating income for retired home-owners. EQUITY release company Seniors Money, which has had no funds to loan out since last April because of the credit crunch, is to start financing homeloans for older people again, it said. IFG Group has launched a new equity release loan for homeowners aged 60 and over in a joint venture with New Zealand-based finance company Sentinel. This equity release … The loan is then paid back at a later date during your lifetime, or when the homeowner dies. For many in this position the obvious answer is to downsize, which as I’ve written before has its pros and cons. It is an expensive way to raise money, but it was the only way they had of getting their hands on some decent money to do what they wanted to do. They had retired and wanted to spend half the year in spain and half here. Equity release mortgages for over 60s can be a great way to borrow later in life and boost retirement income with tax-free cash. Interestingly, more2life research revealed that 26% of women aged 54 and over said they own property wealth by … Lending criteria and terms and conditions apply.