Ireland Equity Release schemes Bank of Ireland loans

Sept. 30, 2011 - PRLog -- There are quite a few schemes that the Bank of Ireland has in store for all those who wish to go in for mortgaging their property for renewal or even for purchase of new homes. In order to understand the two different schemes available it is important to take into account certain basic points that are top priority in such eventualities.

There are the Lifetime Mortgagees and the Home Reversion Schemes.

Under the first scheme one can take or borrow money without the pressure of having to repay the money. The individual can keep on living in the house.

However, the entire amount of money has to be paid up to the company handing out the loan either by selling off the house if one wishes to move out or by if the individual stays here for life then the property is sold off after his demise and the loan is paid up. The money available is subject to age of the individual and there is an interest in the mortgage value that the individual is liable to pay to the company that lends the money.

This means that the longer one lives in the house there is more interest to be paid up.

There are basically two types of Lifetime Mortgages Schemes. First is the Fixed Rate Lifetime Scheme Mortgages according to which there is a fixed interest that the individual has to pay for the time period chosen. The second is the Variable Rate Lifetime Mortgages Scheme according to which there are no fixed rates to the interest and it will vary with that of the market interest rates from time to time. An important point to remember is that while opting for any type of lifetime mortgage scheme it is important to opt for ‘no negative equity guarantee’.

Always ensure your lifetime mortgage gives you a ‘no negative equity guarantee’. This means you will never have to repay more than the proceeds of your home if your home is sold for less than the amount you owe.

Home Reversion Scheme

According to this scheme the owner sells a part of the house .Thus, that part of the house which is sold will get a lesser market value when it is sold. The individual can continue living in the house though. After the individual passes away the sale proceedings are given to the reversion company. There are basically two types of contracts. The fixed and the variable. According to the fixed contract the percentage owned by the reversion company is fixed right at the beginning and cannot be changed .The variable contract allows the percentage owned by the reversion company to increase every year. So, the longer one lives in the house the higher is the percentage that the Reversion Company is liable to get.

Lifetime Loans - Senior Retirement Loans in Waterford / Dublin
35 Morgan Street, Waterford, Co. Waterford, Ireland
Phone:3531890333400  
Mobile:353862507030
Email:-  info@lifetimeloans.ie
Web-site:--http://www.lifetimeloans.ie/