Borrowing more later
An existing Lifetime Loan can’t be ‘topped up’. Instead you would have to take out a new, larger loan and repay the old loan using some of the proceeds of the new loan. The interest rate for the new loan would be the interest rate on offer at the time. This might be higher or lower than the rate on the old loan.
If your future circumstances change, and you would like to borrow more, this might be possible if the combination of your future age and house value would qualify you for an amount exceeding your current loan balance.
For example, if you initially borrowed €50,000 and this grew over time to €70,000, you could apply for a new loan in excess of €70,000 if your then age and property value supported it.
The old loan would have to be repaid and you would receive the difference. For example if the new loan was for €100,000 you would have to use €70,000 to repay the original loan and would receive a net amount of €30,000 with a new starting loan balance of €100,000.
|Old loan Balance:||€70,000|
|New loan starting balance:||€100,000|
|Extra amount released:||€30,000||(after repaying the old loan)|
The process would be the same as for a new loan application, involving a new Client Fact Find, property valuation, full legal process and the payment of any set-up fees required for new loans.
There is no guarantee that you will be approved for a new loan at a future date. The maximum amount of your proposed new Lifetime Loan will be determined based on your property value and your age at the date of the new application.