Trade down equity release

Call our dedicated trade down equity release team on 0818 200 434 (9am to 5pm, Monday to Friday). They can help you understand your options.

Search the market to find the property that’s right for you. You will need to have a new property in mind that you want to purchase before you begin the application process.

When you find a suitable property, we will set up a face-to-face meeting with a mortgage specialist at a time and place that suits you. In the meeting, we’ll discuss the process in detail and get your application started.

We’ll outline the documents that you need to accompany your application.

When you’re ready to finish your application, we will have a second face-to-face meeting at a time and place that suits you. In the meeting, we’ll discuss your finance options in detail and answer any questions you may have about the process.

We’ll give you regular updates on the progress of your application. Once it’s successful, we’ll send you a formal ‘mortgage loan offer’.

If all the requirements are met, your solicitor will complete the purchase of your new home with the seller’s solicitor and arrange to transfer the property title to you.

If you haven’t done so already, now is the time to list your current home for sale.

Your solicitor will complete the sale of your current home. The funds from the sale will be used to repay your trade down equity release mortgage loan and any interest owed. Your solicitor will organise this.

When you’re buying a property, there will be additional costs, some of which you may need to pay upfront:

• Stamp duty – 1% of the purchase price up to €1 million, 2% on the next €500,000, and 6% on any amount over €1.5 million
• Solicitor fees – your own solicitor’s fees
• Valuation report for each property
• Surveyor’s report (if applicable) for each property which usually costs between €150 and €250 (plus VAT) for each property.
• Land registry fees for each property – you will need to have enough money to cover these costs yourself.

If you’re selling a property, you may also be liable for:

• Estate agent/Auctioneer’s fees
• Building Energy Rating (BER) certificate – a legal requirement for your current home which you are selling

As the full amount of the loan is due within 12 months of drawdown, it is important that you let us know as early as possible before then if you are having difficulty selling your current home. For example, unforeseen delays or if your personal circumstances change. We will work out a solution with you which could include agreeing more time to enable you to sell for example. Your financial wellbeing matters to us. If you’re facing a tough situation or a major life event that affects your ability to sell, please reach out to us. We’re here to help and will work with you to find the best solution.

Call our dedicated trade down equity release team on 0818 200 434 (9am to 5pm, Monday to Friday).

You can borrow up to a maximum of 60% of your current home’s value, for example if your home is worth €525,000, you can borrow up to €315,000. The minimum loan amount is €200,000 and the maximum is €1,500,000. This can vary so talk to us about your plans.

Call our dedicated trade down equity release team on 0818 200 434 (9am to 5pm, Monday to Friday). They will answer any questions you may have. Once you have found a property you would like to buy and decided to apply, our dedicated team will arrange for you to meet with one of our mortgage specialists. The mortgage specialist will guide and support you through the whole process from application to drawdown.

No. The trade down equity release option is only available if you own your current home outright and have no mortgage.

No. The trade down equity release option is a short-term loan which allows you to buy a new home outright, without having to sell your current home first. It is not suitable if you need a long-term loan to buy a new home.

Your dedicated mortgage specialist will go through the full list of documents needed to apply.

Before choosing the trade down equity release option, make sure you understand your finances and that you must sell your current home within 12 months of buying your new one. You must also get independent legal advice before choosing this option.

Call our dedicated trade down equity release team on 0818 200 434 (9am to 5pm, Monday to Friday) who can help you work through this.

No. The trade down equity release option is not available to customers who wish to build their new home.

No. The trade down equity release option is not available to customers who wish to rent either their current home or their new home.

No. You will not need to make monthly repayments. The mortgage loan and any interest accrued from the time you receive the funds, will be repaid when your current home is sold. The sale must happen within 12 months of drawing down your mortgage loan.

During the application process we will give you a detailed schedule of interest calculations which will be specific to the amount you are borrowing.

Please read the “What are the main risks with the trade down equity release option?” to understand the main risks involved.

The interest rate is the trade down equity release variable rate of 7%. You can repay the loan and interest in full at any point during the 12-month period you have to sell your current home, at no additional cost.

To move your application along, you will need to have identified a home that you wish to buy. However, we’re here to discuss the process with you while you find your new home. Please call us on 0818 200 434 (9am to 5pm, Monday to Friday).

No. It is an equity release mortgage loan based on you releasing equity from your current home to buy a new home.

As the loan will be repaid from the sale of your current home, the main risks include:

1. Growing loan balance (compounding interest

• Interest is added to your mortgage loan and you do not make any regular repayments during the mortgage term.
• Over time, especially if there are delays with the sale of your current home, this can cause your mortgage loan balance to grow quickly due to compounding interest.
• This may reduce the equity in your home and lower the amount you get from the sale of your current home.

2. Negative equity

• Property values can rise or fall due to market or economic changes. If your home’s value drops, your mortgage loan balance could end up being more than the property is worth.
• If the sale does not cover the full mortgage loan, you will still owe us any remaining debt.

3. Property market changes

• If the property market changes after you drawdown the mortgage funds (for example, if property prices fall), it may be harder for you to sell your home.
• This could lead to a lower sale price and make it harder to repay the mortgage loan balance that you owe in full.

4. Trade down equity release variable rate

• This mortgage loan has a variable rate which means that the interest can go up or down over time.

To take advantage of the trade down equity release option, you must have home insurance on both properties to protect both you and your new home. You may also need mortgage protection.

These policies must be in place before you can draw down your loan. You must also keep home insurance on your current home until it’s sold.

To learn more or arrange cover, talk to one of our mortgage specialists or choose a provider that suits your needs.