"Asset rich and cash poor" is a term that is overused in Ireland but it is a term that applies to more and more homeowners. It may apply to you or perhaps your parents.
Typically, these homeowners have cleared or will shortly clear the mortgage on their home. However, they may be retired and not have sufficient funds built up to allow them live the lifestyle that they would like.
Up to 2002, the only real option for such homeowners was to trade down to a lower value home in order release funds. However, this option did not appeal to the majority of homeowners who wanted to remain in their existing homes.
Now there are a number of alternatives. The most popular of which is an equity release mortgage that is offered by a number of Irish lenders. It does not involve handing over any share in the ownership of the home. It is a loan, secured against your house, that does not need to be paid back until you sell your house, move out or pass away.
At Blue Sky Mortgages we recommend that you take independent mortgage advice as well as independent legal advice in relation to these products. It is also worthwhile to involve all relevant family members as early as possible in the process.
Warning: Purchasing this product may negatively impact on your ability to fund future needs
