Home Plus Ultimate Review Ireland 2022

homeplus

Home Plus are the only provider of Equity Release Home Reversion products for people over 55 in Ireland, but are they the right choice for you? In our Home Plus Ultimate Review – Ireland 2022 we give you the inside track on home reversion plus what the options and alternatives are.

home plus

Home Plus are regulated by the Central Bank of Ireland and have been offering Equity Release products in Ireland for over a decade.

Equity Release can be a good way to unlock money tied up in your home if you are over 55. You can use the cash for anything you’d like from a holiday to helping the kids get on the property ladder.

Equity Release comes in two flavours,

  • Lifetime Loan – You get a tax free loan which you pay off plus interest when you sell after moving out or dying.
  • Home Reversion – You get a tax free lump sum for selling a portion of your home and are able to continue living there.

If you want make sure you will have equity left in your home when you move out or die home reversion beats lifetime loans. This is because the proportion of your home you are giving up is agreed up front. With lifetime loans the proportion of your home given up increases the longer you stay in your home.

With home reversion you sell a % of your home to release cash, but hold onto the rest and can live in the home till you permanently move out or die. Home Plus are the only current provider of home reversion products in Ireland.

Here’s how the Home Plus home reversions work in principle,

  • You sell a share of your home to Home Plus for a lump sum in return
  • The older you are the less of a discount to market rate you will receive when you sell
  • You continue to live in the property as long as you wish, with Home Plus getting a proportion of the sale proceeds when you or your estate sells the property

You can set up a Free consultation with Qualified Financial Advisor from Home Plus here.

Read on to get all the facts and figures on Home Plus and home reversion equity release to see if it might be a good fit for you.

  1. Home Plus Rate and Product Overview – Home Plus Ireland 2022
  2. Pro’s & Con’s – Home Plus Ireland 2022
  3. Tips – Home Plus Ireland 2022
  4. Alternatives – Home Plus Ireland 2022
  5. In a Nutshell – Home Plus Ireland 2022

Home Plus Product Overview – Home Plus Ireland 2022

Home Plus are the only providers of home reversion products in Ireland and have been in Ireland for over a decade. They are regulated by the Central Bank of Ireland.

They are a sister company of retirement bridge in the UK who are the UK’s largest administrators of home reversion products.

Home Plus Home Reversion Product

Home reversion is a form of equity release where you sell a portion of your home to a provider in return for a cash free lump. In the UK home reversion makes up over 10% of the Equity Release market.

With a home reversion you can choose to either to just take the lump sum with no monthly payments or to increase the lump sum size ‘boosting’ by committing to make monthly payments.

Unlike with a Lifetime Loan the Home Plus Equity Release product caps the share of the property that you give up at the start. This guarantees that you will own the remainder allowing you to pass on a share to your family if you wish when you die.

How much lump sum can I access from Home Plus?

The minimum lump sum is €50,000 with no maximum lump sum in theory as it depends on the value of your home.

In practice the maximum lump sum you can receive is 70% of the current market value of your home which is then discounted depending on your age.

If you’re in your early 60’s then the discount on the lump sum is around 50%, as the provider expects their cash to be tied up in your home for quite awhile.

If you are in your 80’s though you will get closer to the market value as your lump sum as the provider doesn’t expect you or their investment to be in your house for as long.

In actual fact the level of discount is set by the youngest resident on the deeds, as that is what will drive how long Home Plus will have to wait for the sale of your home.

Example use of Home Plus for Home Deposit

Eileen is 75 and has a house worth €700,000. Under the terms of the Home Plus home reversion, she is entitled to sell 70% of her home to Home Plus.

Her son Mark is looking to move house as the kids are getting bigger. Eileen wants to help her son and decides to gift Mark €175,000. Eileen sells 54% of her home to Home Plus to raise the €175,000 she needs to gift to Mark.

As the €175,000 is under the current parent /child CAT threshold amount of €335,000 there is no taxes involved and Mark can use the €175,000 plus a mortgage to buy a larger home.

Home Plus Discount Rate

The big drawback of home reversion is the steep discount that applies when you sell your share to Home Plus in return for a lump sum.

This depends on your age, at 55 you will only get around 23% of the market value for the share you sell, while at 75 this climbs to around 50%.

The good news is that you will get around 5% more if the youngest home owners is male, but the bad news is that this is because the provider thinks it is more likely that you will die earlier.

The discounts are so big, because of the amount of risk the provider is taking on versus the risk the home owner is taking.

You get your hands on the cash and know exactly how much equity you are giving up, but the provider doesn’t know when the property will sell or what state the housing market will be in when that happens.

Qualifying for Home Plus

To qualify for a home reversion

You must be: 

  • The registered owner(s) of the property
  • All owners must be sellers, i.e. sign the home reversion agreement
  • The youngest owner must be over 55

the Property must be

  • Your main residence (and not used for any commercial purpose)
  • Any outstanding mortgage must be cleared from the proceeds of the sale
  • Worth at least €120,000

Home Plus Home Reversion Terms

As part of the home reversion agreement you have the option to buy back the share you sell to Home Plus at the market rate at any time. This can make sense if for example you decide to downsize your home at any point.

Your estate also has first option to buy back the share at the market rate from Home Plus after your death if they wanted to keep the family home.

If the option is not exercised the house will go for public sale with each party receiving their share of the proceeds on sale.

Pro’s & Con’s – Home Plus Ireland 2022

So here’s some of the key things to consider when thinking about getting a home reversion without monthly payments

Pro’s

  • You can access cash now and continue to live in your home
  • You can’t lose your home while you live there, it’s insured and in good condition
  • You know in advance how much you are leaving to your kids
  • You are free to do whatever you like with the cash you free up

Con’s

  • Discount to market value reducing the overall value of your estate
  • Set up costs of around €1,500 in total, for Solicitor and Valuer fees.
  • Potential impact on means tested social security benefits
  • If property prices rise you will only get the benefit on your share

Home Reversion Tips – Home Plus Ireland 2022

1) Release your equity in phases

If you are thinking about a home reversion you don’t need to take it all out at once. By taking it out over time you can reduce the overall amount of discount to market value you receive.

There is no point in having cash from your home reversion sat in the bank not being used and earning no interest. So only take out what you need at each stage.

2) Talk to those who might be effected

If your thinking of Equity Release it may make sense for you to talk to members of your family who may be effected.

There is obviously no legal reason you have to discuss your decision with them, but it can save some heartache when your decision to take equity release comes to light later on down the track.

3) Get advice

Equity Release is a big decision and you should get advice and guidance through the process from a qualified financial advisor and a solicitor.

If you use a qualified financial advisor who has an appointment with Spry Finance or Home Plus from the Central bank of Ireland they will probably be free to use, as the providers will cover their costs. You can get in touch with a qualified financial advisor who can talk you through how to get a home reversion here.

You will have to pay for a solicitor, with fees ranging from €1,200 to €2,500 depending on who you use. We recommend Colm O’Cochlain & Co who have a flat all in fee of €1,200 including VAT for equity releases, as they have the lowest fees, specialise in equity release arrangements and operate nationwide. Please quote moneysherpa if you want to secure the best rate.

Alternatives – Home Plus Ireland 2022

The other main form of equity release is lifetime loans, where you borrow against the equity in your home. You can check out our article on Spry Finance lifetime loans here or our article on equity release here were we weigh up the pro’s and con’s of each option.

In a Nutshell – Home Plus Ireland 2022

Equity release is growing in popularity if you’re over 55 as a way to free up much needed cash from your home and still continue to live there. If you’re under 55 the equivalent is a top up mortgage.

You can use it for yourself or to free up cash for your kids, often to help them get on the housing ladder. It is relatively costly compared to downsizing so you need to weigh the pros and cons of both.

If you do want to go ahead with equity release you should get qualified financial advice.

One of the two most popular ways to release equity is through a home reversion, the only provider of these in Ireland right now is Home Plus who are regulated by the Central Bank of Ireland.

Next Steps – Home Plus Ireland 2022

You can get in touch with a qualified financial advisor who can talk you through how to complete a home reversion here or you can check out moneysherpa’s own in house broker teams the mortgage sherpas here.

The other main form of equity release is lifetime loans, where you borrow against the equity in your home. You can check out our article on Spry Finance lifetime loans here or our article on equity release here were we weigh up the pro’s and con’s of each option.

We have loads more in our mortgage provider reviews here.

If you want to have a chat and talk it through you can click for a mortgage check up with one of our sherpas here.

You can get more detail on lifetime loans, home reversion and equity release from the CCPC [1].

Spry Finance Ultimate Review Ireland 2022

Spry Finance Logo

Spry Finance are the only provider of Equity Release Lifetime Loans for people over 60 in Ireland, but are they the right choice for you? In our Spry Finance Ultimate Review – Ireland 2022 we give you the inside track on lifetime loans plus what the options and alternatives are.

Spry Finance

Spry Finance are regulated by the Central Bank of Ireland, have over 2,000 customers in Ireland and have been offering Equity Release products in Ireland since 2006.

Equity Release can be a good way to unlock money tied up in your home if you are over 60. You can use the cash for anything you’d like from a holiday to helping the kids get on the property ladder.

Equity Release comes in two flavours,

  • Lifetime Loan – You get a tax free loan which you pay off plus interest when you sell after moving out or dying.
  • Home Reversion – You get a tax free lump sum for selling a portion of your home and are able to continue living there.

Lifetime loans are the most popular form for equity release and Spry Finance are the only current provider of lifetime loans in Ireland.

Here’s how the Spry Finance lifetime loans work in principle,

  • You borrow against your properties value
  • The older you are the more you will be able to borrow
  • The loan is charged at a fixed rate of 5.45%
  • You continue to live in the property as long as you wish, with the loan being repaid after you or your estate sells the property

You can set up a Free consultation with Qualified Financial Advisor from Spry Finance here.

Read on to get all the facts and figures on Spry Finance and lifetime Equity Release to see if it might be a good fit for you.

  1. Spry Finance Rate and Product Overview – Spry Finance Ireland 2022
  2. Pro’s & Con’s – Spry Finance Ireland 2022
  3. Recommendation – Spry Finance Ireland 2022
  4. Alternatives – Spry Finance Ireland 2022
  5. In a Nutshell – Spry Finance Ireland 2022

Spry Finance Rate and Product Overview – Spry Finance Ireland 2022

Spry Finance are the only providers of lifetime loans in Ireland after Bank of Ireland withdrew from the market following the market crash in 2008.

They are part of the Seniors Money International Group who also have experience of offering these loans in Australia, Canada, Spain and New Zealand, with funds provided by Deutsche Bank.

Spry Finance Lifetime Loan Product

Lifetime loans are most popular form of equity release where you borrow some of your home’s value at a fixed interest rate. In the UK lifetime loans make up over 90% of the Equity Release market.

With a lifetime loan you can choose to either leave the repayments to when you move out and sell your home or pay off some of the interest monthly.

If you don’t make any monthly payments the interest that builds up will eat into what is left over from the sale of your property for you or your family when you do move out though.

The Spry Finance Equity Release product guarantees however that the money you will have to repay at the point of sale will never be bigger than the value of your home, so you won’t pass on any debt to your family.

How much can I borrow from Spry Finance?

The minimum amount you may borrow is €20,000 with the maximum capped at €500,000

The maximum amount for each property is based on: 

  • a % of the value of your property  
  • the age of the youngest resident when the loan starts (see table below)

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Example use of Spry Finance for Home Deposit

Eileen is 75 and has a house worth €700,000. Under the terms of the Spry Finance Lifetime Loan, she is entitled to borrow up to 30% of the value of her home.

Her son Mark is looking to move house as the kids are getting bigger. Eileen wants to help her son and decides to gift Mark €175,000. Eileen takes out a €175,000 Lifetime Loan at a rate of 4.95% per annum.

As the €175,000 is under the current parent /child CAT threshold amount of €335,000 there is no taxes involved and Mark can use the €175,000 plus a mortgage to buy a larger home.

Spry Finance Interest Rate

The interest rate is fixed at 5.45% for the lifetime of the loan, which gives certainty as to the future loan balance.

At 5.45% the rate is higher than standard fixed rate mortgage products which have comparable rates of around 3%. However, standard mortgages usually must complete before the home owner is 75 so don’t usually make sense for older applicants.

It’s the amount available going up with age, the interest rate being fixed and the fact that the value of the loan never will exceed the value of the property that makes lifetime loans attractive for older customers.

The reason that the interest rate is higher for lifetime loans is that the lender guarantees the rate is fixed no matter how long you stay in your home and that the loan will never become larger than equity in your property.

This is true no matter how long you live or whatever happens to property prices. You can think of this a little like a built in insurance policy on your loan terms.

Qualifying for Spry Finance

To qualify for a lifetime loan

You must be: 

  • The registered owner(s) of the property
  • All owners must be borrowers, i.e. sign the loan agreement

the Property must be

  • Your main residence (and not used for any commercial purpose)
  • Mortgage free or the mortgage can be cleared from the proceeds of the loan
  • Worth at least €250,000 in Dublin or €175,000 elsewhere

Spry Finance Early Repayment Terms

Interest is added to the loan balance each month (i.e. compound interest), so the loan balance grows over time. Interest is calculated on the daily balance and compounded monthly.

So over a long period and a rate of 5.45% interest payments can really mount up, significantly reducing any proceeds to you or your estate from the sale of your home in future.

That’s why even though you don’t have to pay off any of loan until you move out it can make sense to make some repayments if you can afford to and keep the accumulated interest payments down.

With the Spry finance lifetime loan you can make some partial repayments, but limited as follows:

  • Minimum of €500 per partial repayment
  • Maximum of four partial repayments per year
  • Maximum total per year not to exceed 10% of the amount originally borrowed

If you want to pay off more, an Early Repayment Charge may apply. This charge is capped under EU legislation and is calculated on the difference between Central Bank rates when you take out the loan versus what they are at the time you want to pay the loan back.

You should also note that if you want to move house payment of the loan becomes due immediately, you can usually transfer the loan to the new property if it has enough equity. If it doesn’t this can make things tricky and is worth considering if you are thinking of downsizing your home at any point.

Pro’s & Con’s – Spry Finance Ireland 2022

So here’s some of the key things to consider when thinking about getting a lifetime loan

Pro’s

  • You can access cash now and continue to live in your home
  • You can’t lose your home while you live there, it’s insured and in good condition
  • Unlike a home reversion, if property prices rise you still get the full benefit
  • You won’t leave any debt to your kids due to the “No Negative Equity” guarantee
  • You are free to do whatever you like with the cash you free up

Con’s

  • Cost through interest reducing the value of your estate
  • Set up cots of around €3,000 in total, €1,500 once off fee plus Solicitor and Valuer fees.
  • Potential impact on means tested social security benefits
  • Lack of flexibility (you may not be able to downsize later or pay off as early as you’d like)

Lifetime Loan Tips – Spry Finance Ireland 2022

1) Release your equity in phases

If you are thinking about a lifetime loan you don’t need to take it all out at once. By taking it out over time you can reduce the overall amount of interest that you will pay.

There is no point in having cash from your lifetime loan sat in the bank not being used and earning no interest. So only take out what you need to reduce the interest you pay on the lifetime loan overall.

2) Talk to those who might be effected

If your thinking of Equity Release it may make sense for you to talk to members of your family who may be effected.

There is obviously no legal reason you have to discuss your decision with them, but it can save some heartache when your decision to take equity release comes to light later on down the track.

3) Get advice

Equity Release is a big decision and you should get advice and guidance through the process from a qualified financial advisor and a solicitor.

If you use a qualified financial advisor who has an appointment with Spry Finance or Home Plus from the Central bank of Ireland they will probably be free to use, as the providers will cover their costs. You can get in touch with a qualified financial advisor from Spry who can talk you through how to get a lifetime loan here.

You will have to pay for a solicitor, with fees ranging from €1,200 to €2,500 depending on who you use. We recommend Colm O’Cochlain & Co who have a flat all in fee of €1,200 including VAT for equity releases, as they have the lowest fees, specialise in equity release arrangements and operate nationwide. Please quote moneysherpa if you want to secure the best rate.

Alternatives – Spry Finance Ireland 2022

The other main form of equity release is home reversion, where you sell a share of your home in return for a lump sum. You can check out our article on Home Plus home reversion here or our article on equity release here were we weigh up the pro’s and con’s of each option.

In a Nutshell – Spry Finance Ireland 2022

Equity release is growing in popularity if you’re over 60 as a way to free up much needed cash from your home and still continue to live there. If you’re under 60 the equivalent is a top up mortgage.

You can use it for yourself or to free up cash for your kids, often to help them get on the housing ladder. It is relatively costly compared to downsizing so you need to weigh the pros and cons of both.

If you do want to go ahead with equity release you should get qualified financial advice.

The most common way to release equity is through a lifetime loan, the only provider of these in Ireland right now is Spry Finance who are regulated by the Central Bank of Ireland.

Next Steps – Spry Finance Ireland 2022

You can get in touch with a qualified financial advisor from Spry who can talk you through how to get a lifetime loan here or you can check out moneysherpa’s own in house broker teams the mortgage sherpas here.

We have loads more in our mortgage provider reviews here.

If you want to have a chat and talk it through you can click for a mortgage check up with one of our sherpas here.

You can get more detail on lifetime loans, home reversion and equity release from the CCPC [1].

Equity Release Ireland 2022 – How to Release Cash from your Home

Mortgage Top Up

Looking to free up the cash locked up in your home? Equity release can free up cash tied up in your home for holidays, gifting to the kids, home improvements, a new car and more. It can also be a good way to solve financial issues like paying off other debts, freeing up cash for a divorce settlement or to help your kids get on the property ladder.

Equity Release Ireland 2022

Equity Release is only open to people over 55 in Ireland, in this article we will give you the lowdown on whether Equity Release is right for you and what options are available. If you are under 55 your can still free up cash from your home with a mortgage top up.

Equity Release comes in two flavours,

  • Lifetime Loan – You get a tax free loan which you pay off plus interest when you move out and sell.
  • Home Reversion – You get a tax free lump sum for selling a portion of your home, but are able to continue living there.

Both types of equity release can be a good solution if you need cash, but want to stay in your home and are becoming increasingly popular. You can talk to an an expert equity release advisor here.

The option that’s best for you depends on your particular circumstances so read on to find our if equity release is right for you and which type would be the right option.

  1. What Is It and How Does It Work? – Equity Release Ireland 2022
  2. Equity Release Alternatives – Equity Release Ireland 2022
  3. Equity Release Pros and Cons – Equity Release Ireland 2022
  4. Equity Release Top Tips – Equity Release Ireland 2022
  5. In a Nutshell – Equity Release Ireland 2022

What Is It and How does It Work? – Equity Release Ireland 2022

Equity is the cash you would get if you were to sell your home right now. This is the difference between the value of your house and what you still owe on it.

Equity release products are a way of getting at the value locked away in your home without having to sell up and move out. In return for letting you get your hands on the cash right now though, you will have to give more of your homes value away to the financial providers when you eventually move out.

Equity Release is becoming increasingly popular, in the UK over half a million people have released equity from their home. As well as paying off their debts many have used the cash freed up to help their kids get a foothold on the property ladder, giving over £5 Billion to their children through equity release.

According to a recent study in the UK these are the main things that people did with the cash they freed up from Equity Release.

  • Repay other debts (51%)
  • Take a holiday (20%)
  • Improve lifestyle overall (19%)
  • Give to kids (including as a deposit on a new home) (16%)
  • Make home and garden improvements (15%)

There are two providers of Equity Release products currently in Ireland, Spry Finance and Home Plus, both of whom have been in Ireland for decades and are regulated by the Central Bank of Ireland.

Life Time Loan

Spry Finance offer what is know as a Lifetime Loan. This is the most popular form of equity release where you borrow some of your home’s value at a fixed interest rate.

You can choose to either leave the repayments to when you move out and sell your home or pay off some of the interest monthly. If you don’t make any monthly payments the interest that builds up will eat into what is left over from the sale of your property for you or your family when you do move out though.

The Spry Equity Release product guarantees however that the money you will have to repay at the point of sale will never be bigger than the value of your home, so you won’t pass on any debt to your family.

Home Reversion

Home Plus offer the other type of equity release, known as Home Reversion. With Home Reversion the provider pays you a tax free lump sum for a portion of your home at a discount to the market price.

So when the property is sold you (or your family/estate) and the provider split the proceeds depending on the share they have purchased. So if house prices have risen since your sold a share of your property you will benefit less.

Equity Release Alternatives – Equity Release Ireland 2022

Before we go any further the question you need to ask yourself is

Is Equity Release Right for Me?

There is a cost to Equity Release either in the interest rate you pay with a lifetime loan, typically around 5.5%, or in the discounted price that is offered for a share of your property with a home reversion.

That’s why you should consider your alternatives carefully before making any commitments.

Down Sizing

Although current mortgage interest payments are at record lows, interest payments really mount up over longer periods. An option that doesn’t involve paying more in interest or discounting your home value is to sell up and move to a smaller property.

You will probably incur around €1,500 in solicitor and valuer fees in the process, but this is much less than you would pay in interest or discount, so financially speaking is a much better option than equity release.

If you’re settled in an area emotionally this can be a big wrench, so you will have to balance the cost to your quality of life with the financial cost of equity release to come to a final decision on what’s best.

Equity Release Pros and Cons – Equity Release Ireland 2022

So here’s some of the key things to consider when thinking about Equity Release

Pros

  • You can access cash now and continue to live in your home
  • You can’t lose your home while you live there, it’s insured and in good condition
  • You won’t leave any debt to your kids due to the “No Negative Equity” guarantee
  • You are free to do whatever you like with the cash you free up

Cons

  • Cost through interest (lifetime loan) or discounted sale price (home reversion)
  • Costs to arrange a solicitor and valuer for your home, around €2,000 in total
  • Potential impact on means tested social security benefits
  • Lack of flexibility (you may not be able to downsize later or pay off as early as you’d like)

Equity Release Top Tips – Equity Release Ireland 2022

1) Release your equity in phases

If you are thinking about a lifetime loan you don’t need to take it all out at once. By taking it out over time you can reduce the overall amount of interest that you will pay.

There is no point in having cash from your lifetime loan sat in the bank not being used and earning no interest. So only take out what you need to reduce the interest you pay on the lifetime loan overall.

While we are on the subject never release equity to fund speculative investments, focus on taking out the minimum you need for your own use.

2) Talk to those who might be effected

If your thinking of Equity Release it may make sense for you to talk to members of your family who may be effected.

If you are going to take cash out of the value of your home now, that means there will be less cash from the sale of your home if you die or have to move into long term care.

This can cause issues with family members who may see the family home as part of their ‘inheritance’.

There is obviously no legal reason you have to discuss your decision with them, but it can save some heartache when your decision to take equity release comes to light later on down the track.

3) Get advice

Equity Release is a big decision and you should get advice and guidance through the process from a qualified financial advisor and a solicitor.

If you use a qualified financial advisor who has an appointment with Spry Finance or Home Plus from the Central bank of Ireland they will probably be free to use, as the providers will cover their costs. You can get in touch with a qualified financial advisor who can talk you through how to get a lifetime loan or home reversion here.

You will have to pay for a solicitor, with fees ranging from €1,200 to €2,500 depending on who you use. We recommend Colm O’Cochlain & Co who operate nationwide as they specialise in equity release arrangements and operate nationwide. Please quote moneysherpa if you want to secure the best rate.

In a Nutshell – Equity Release Ireland 2022

Equity release is growing in popularity if you’re over 55 as a way to free up much needed cash from your home and still continue to live there. If you’re under 55 the equivalent is a top up mortgage.

You can use it for yourself or to free up cash for your kids, often to help them get on the housing ladder. It is relatively costly compared to downsizing so you need to weigh the pros and cons of both.

If you do want to go ahead with equity release you should get qualified financial advice.

The most common way to release equity is through a lifetime loan, the only provider of these in Ireland right now is Spry Finance who are regulated by the Central Bank of Ireland.

What’s next – Equity Release Ireland 2022

You can get in touch with a qualified financial advisor who can talk you through how to get a lifetime loan or home reversion here or you can check out moneysherpa’s reviews of the two equity release players in the Irish market Spry Finance lifetime loan review and Home Plus home reversion review.

You can get more detail on lifetime loans, home reversion and equity release from the CCPC [1].

Should I Get a Mortgage Top Up? 3 Tips to Free Up Cash from Your Home – Ireland 2022

Mortgage Top Up
Mortgage Top Up

Looking to free up the cash locked up in your home? A mortgage top up may be what you are looking for, allowing you to release some of the equity tied up in your home.

No matter what you want the money for, our tips will give you the inside track on whether a mortgage top up is right for you and the best way to go about it.

By switching mortgage to a better rate you can often borrow more and still pay less in repayments per month. That’s why the the number of people taking out a mortgage top up, also sometimes known as releasing equity, is on the rise.

A mortgage top up is simply re-mortgaging your home for more than your current outstanding mortgage to allow you to access the amount you have ‘topped up’ by to spend now.

Use our mortgage top up calculator to see what your new monthly repayment will be. Select ‘new mortgage’ to see if your repayments on the topped up amount are less than you are paying today.

If you’re over 60 there are also some other equity release options know as a home reversion equity release or a lifetime loan equity release, which will also allow you to stay put and release some cash.

For most of us though the mortgage top up is the way to go. To find out more about how you can get a mortgage top up and whether it would suit you read on.

  1. Should I Get A Mortgage Top Up? – Mortgage top up Ireland 2022
  2. 3 Top Up Tips – Mortgage top up Ireland 2022
  3. In a Nut Shell – Mortgage top up Ireland 2022
  4. What Happens Next – Mortgage top up Ireland 2022

Should I Get A Mortgage Top Up? – Mortgage top up Pro’s & Con’s Ireland 2022

Before we go any further the first question you need to ask yourself is

Should I Borrow More At All?

Even though the current historically low mortgage rates mean you may be able to borrow more than you have today and still pay less in monthly repayments, it doesn’t mean you should.

If you can wait and save up instead, you could simply switch your current mortgage loan to the new lower rates reducing your mortgage repayments and giving you the option to reduce the term of your mortgage.

If that’s not an option for you, read on.

Why Are You Borrowing More?

Remember by topping up your mortgage you are securing the loan against your home and probably borrowing across a long period which means making higher interest payments overall.

So if you are thinking of borrowing more long term investments for the future, like home improvements, make more financial sense.

If you are borrowing to fund current spending or consolidating short term debts tread carefully. Although current mortgage interest payments are at record lows, interest payments really mount up over longer periods.

Use our mortgage top up calculator to see what your new monthly repayment will be. Select new mortgage and if your repayments on the topped up amount are still less than you are paying today then you at least have some good options to work with.

3 Top Up Tips – Mortgage Top Up Ireland 2022

There are 3 things you need to consider when you are getting a top up mortgage.

  • Principal – the total amount you need to borrow
  • Purpose – what is the top up part of the loan going to be spent on
  • Process – how do you maximise your approval odds

These 3 p’s are your passport to releasing the maximum amount of cash from your home.

1) Mortgage Top Up Tips – Principle

The principle is the total amount you need to borrow.

Principle = outstanding mortgage + top up amount

In most cases under Central Bank limits the principle can not be bigger than 20% of the value of your home or 3.5 times your annual gross salary.

2) Mortgage Top Up Tips – Purpose

Different lenders have very different policies about what the top up part of your principle can be used for.

That’s why you should use a mortgage broker to match you with the right lender. Some lenders only allow mortgage top ups for home improvement, whilst others pretty much allow anything depending on the size of the top up you are looking for.

Assuming you engage a broker that works with all the lenders on the market here’s how the options break down by top up mortgage amount.

  • Below €20,000, includes all types of discretionary spend such as holidays, weddings, cars with no receipts required.
  • €20,000 – €70,000 , things are still pretty flexible. Includes debt consolidation, gifting to children, education, medical expenses. The only real change is you will need to produce the receipts/quotes.
  • €70,000 up, at this point it’s home improvement only. All lenders offer home improvement top ups, but only some will let you lend up to 80% of the future rather than current value of your home.

Not from €70,000 up it’s likely you are conducting major structural works so you will need quotes in advance and planning permission.

3) Mortgage Top Up Tips – Process

The top up mortgage process works in pretty much the same way as any other mortgage.

Mortgage Customer Journey Final
  1. Get a mortgage broker. They can help you navigate the process and match you with the right lender.
  2. Get mortgage ready. As part of the application process the lenders will also run the rule over your ability to repay the loan. The 6 months before the application is critical as lenders will look at your bank statements in this period to assess your ability to repay the loan as part of the application.
  3. Get a solicitor and valuer. Again a good broker can help you with this and some lenders will cover the costs.
  4. Get your mortgage protection increased. If your increasing your mortgage you will need to increase your protection, this should be less than €5 more per month and you might even save by switching provider.

Once you receive your loan offer and meet any remaining conditions you will be able to drawdown the top up amount into your bank account and get spending.

In a Nutshell – Mortgage top up Ireland 2022

Mortgage top ups are on the rise with historically low rates giving the option for some of releasing cash now without having to increase their repayments.

That said, you should think about if you really need to borrow and why before you take the plunge.

For example for those looking to get their kids on the housing ladder or improve their home, a mortgage top up can make a lot of sense.

Due to the wide range of lender policies though you should arrange your top up through a broker who has access to all the lenders in the market.

What’s next – Mortgage top up Ireland 2022

Make sure all your documentation lines up and if needed clean house on your finances for the 6 months before you apply.

You should then engage with a broker who can guide you to the best lender and help take the pain out of the paperwork. You can check out moneysherpa’s own in house broker teams the mortgage sherpas here.

We have loads more on help to buy grants, the best rates and mortgage provider reviews here.

If you want to have a chat and talk it through you can click for a mortgage check up with one of our sherpas here.

Avant Logo
  • Rates from 2.02% APRC
  • Fixed for 3-30 Years
  • Tighter approval policy
ICS Logo
  • Rates from 2.78% APRC
  • Fixed for 3-5 Years
  • Flexible approval policy
Finance Ireland Logo
  • Rates from 2.53% APRC
  • Fixed for 3-25 Years
  • Flexible approval policy

You can get more detail on the documents required for a mortgage and mortgage top ups from the CCPC [1].

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