Latest news with #equityrelease
Yahoo
7 days ago
- Business
- Yahoo
Homesafe Wealth Release Reaches 5,000 Retiree Milestone
SYDNEY, AU / / July 23, 2025 / Homesafe Wealth Release has achieved a major growth milestone, supporting more than 5,000 Australian homeowners in retirement by enabling them to unlock the equity in their homes-without taking on debt or downsizing. As inflation pressures mount and many retirees face inadequate superannuation balances, Homesafe Wealth Release has emerged as a trusted solution for financial independence. The innovative equity release product allows homeowners aged 60 and above to access a portion of the value in their property, without incurring interest or regular repayments. Debt-Free Equity Access for Retirees Homesafe Wealth Release is a purpose-built financial product that provides a lump-sum payment in exchange for a pre-agreed, capped share of the home's future sale proceeds. Clients retain full legal ownership and the right to live in the property for life. Unlike traditional reverse mortgages, the Homesafe Wealth Release model involves no interest, no ongoing repayments, and no requirement to move or downsize-offering retirees greater freedom and peace of mind. "Many older Australians are in homes that have risen significantly in value, but they lack sufficient income or savings to live comfortably," said Dianne Shepherd, Managing Director of Homesafe Solutions Pty Ltd. "Homesafe Wealth Release offers a safe and responsible way to access that wealth without sacrificing homeownership or stability." Building Confidence in Retirement Planning Since its founding in 2005, Homesafe has built a strong reputation for ethical finance, transparency, and consumer protection. The company's mission is to give retirees a secure way to convert housing wealth into accessible funds, while safeguarding their ability to remain in their homes. National figures show many Australians retire with less than $200,000 in superannuation, while the median home value often exceeds $1 million-highlighting the need for solutions like Homesafe Wealth Release in bridging the retirement funding gap. "At every stage of our process, we prioritize respect, trust, and clarity," added Shepherd. "We understand that people aren't just releasing equity-they're making deeply personal financial decisions." Impact Reflected in Client Experiences Thousands of retirees have experienced the real-world benefits of Homesafe Wealth Release: "Homesafe allowed us to stay in our treasured family home. There was no need to downsize, and we had the freedom to do what we wanted in retirement," shared Rhona, a Homesafe client. "The process was simple and easy to understand. It gave me peace of mind and enabled us to get on with our lives," said Hank, another satisfied client. "I had heard about Homesafe and that I could access equity in my property to pay off my debts. Homesafe was easy to deal with, and they were interested in helping me," noted James, who used the solution to regain financial stability. These testimonials reflect the program's ability to provide practical solutions in challenging financial environments. Future Growth Aligned with Market Needs As Australia's population ages and property values remain strong, Homesafe Wealth Release is positioned to serve a growing number of retirees seeking reliable, flexible retirement funding. With its commitment to transparency, security, and customer-focused design, Homesafe continues to reshape how Australians think about retirement income and home equity access. About Homesafe Wealth Release Homesafe Solutions Pty Ltd, based in Melbourne, is the creator of the Homesafe Wealth Release product-a first-of-its-kind, debt-free equity release solution designed to help older homeowners access the value in their homes without interest or repayments. Since launching in 2005, the company has empowered over 5,000 retirees to improve their financial wellbeing while remaining in their homes for life. Website URL - name - Homesafe Solutions P/LEmail address - info@ - Sydney, SOURCE: Homesafe Solutions P/L View the original press release on ACCESS Newswire Sign in to access your portfolio
The Sun
14-07-2025
- Business
- The Sun
What happens to your equity release plan when you die?
IF you're looking to supplement your income in later life, equity release may be an option. But what happens to your plan when you die? Equity release can come in two forms, either as a lifetime mortgage or a home reversion plan. Get your FREE equity release calculation FIND HERE The most common form of equity release is a lifetime mortgage, which is a loan secured against your property. Whereas a home reversion plan allows homeowners to sell a portion of their home in exchange for a lump sum or a regular income, while still living there, typically rent-free. While structured differently, these types of equity release do share a few characteristics. For example, it's only available to homeowners over a certain age, the money you receive is tax free, and the plan finishes when the last person dies or moves into long-term care, at which point any outstanding balance would be repaid. That means taking out equity release will reduce the value of your estate - or in other words, it will leave less for an inheritance to your loved ones. So, below we explain what happens when your plan comes to an end. How does equity release work when you die or move into long-term care? Usually, for a lifetime mortgage, your home will need to be sold, and the proceeds from that sale will be used to repay any outstanding debt. This is the original capital borrowed plus any rolled-up interest. Similarly, for home reversion plans, the provider will be repaid when you die. But since these lenders own all or a portion of your home, the amount they'll be repaid depends on the percentage they own and the sale price of the property. So if your home has increased in value, the provider will benefit from the increase when your property is sold. Companies that are members of the Equity Release Council need to adhere to a strict set of rules, one of which states that plans come with a No Negative Equity Guarantee. This means your estate will never owe more than your property is worth when it is sold. This is an important feature if you're considering a lifetime mortgage. That's because if your home is sold after your death and it's worth less than your outstanding balance, your family won't be required to make up the shortfall. Find out how much you may be able to release FIND HERE Will my partner need to repay my lifetime mortgage when I die? Lifetime mortgages can be sold as joint policies, and in these instances, your surviving partner can continue to live in your home until they either die or move into long-term care. The plan will stay in place; however, the interest will continue to roll up. Some lenders do allow a 'Significant Life Event exemption' clause in your plan, which means you have the option to repay the mortgage without incurring early repayment charges if your spouse dies first. If it's not a joint policy with your partner, then they'll have the option to repay the outstanding balance or sell the home and move elsewhere. If you find a new partner after taking out equity release, then speak to an equity release advisor about adding them to your policy. Dangers of equity release EQUITY release can be a good way to unlock cash in retirement - but there are some dangers to consider, according to The Sun's Tara Evans. Interest rates on lifetime mortgages are around 5.5%, with some topping 8%. This means they can be more expensive than a traditional mortgage and you should always consider downsizing first. You could end up owing more than you borrowed, although it will never be more than the value of your home. Using equity release to take cash from your home will reduce the assets you have to pass on to loved ones when you die. It is a long-term commitment and you may be charged an early redemption fee that can be as high as 25% if you want to pay it off. Be aware that equity release could affect or stop your benefits. Always seek advice from a qualified equity release adviser. What happens if I move into full-time care? If the last policyholder moves into full-time care, then your equity release plan will need to be repaid. Once your home is sold and the proceeds are used to repay the lender, you can use the remaining balance to fund your care. If you don't have enough to afford the care you need, then you'll need to get in touch with your local authorities to investigate funding options. How long is there to repay the equity release lender after death? Equity release providers normally require the final bill to be settled no more than 12 months after your death. Your lender expects that the money released and any accrued interest will be repaid through the sale of your home, so it naturally allows time to market and negotiate the sale of the property. If the sale of your home is taking longer than expected, and whoever handles your estate is afraid of missing the deadline, they will need to get in touch with your lender to discuss options. Get your equity release calculation in seconds FIND HERE Does equity release interest stop on death? No, interest will continue to be charged on a lifetime mortgage until the outstanding balance is repaid to your lender. Will my house need to be sold to pay back my lifetime mortgage? In some instances, your beneficiary may decide they want to inherit your home and, as such, they would need to repay the outstanding balance via alternative means. However, this option will need to be discussed with your lender. Will there be any money left for inheritance? If leaving behind an inheritance for your loved ones is important, you can ring-fence a percentage of the equity in your home to be passed on to your beneficiaries when you pass away. In effect, this makes your home less valuable to your lender, and it does reduce the amount you can borrow. If this is important to you, make sure that your adviser knows to include it as a feature of your plan. Without it, the amount that is passed on to your beneficiaries will be impacted. What happens if house prices fall? A fall in house prices isn't good news for anyone with an equity release plan. For a lifetime mortgage, the amount you owe your lender doesn't change in line with any change in the house price. This means that after you have repaid the lender, if the house price has fallen, there will be less equity left over for your beneficiaries. For home reversion plans, things are different. If the house price falls, the percentage of equity in the home that you and the lender own will both drop in value. Can equity release be paid back before death? Equity release can be repaid early. Some plans allow you to make voluntary payments to stop the roll-up of interest and repay some of the capital; however, payments are subject to certain limits. Early repayment charges may apply above a set value, so if you do decide to repay the plan early, it's important to factor those charges into your decision. Sometimes, continuing to keep up with the interest repayments and repaying the outstanding balance when moving to long-term care or when you die is a better solution for you. Age Partnership is a trading name of Age Partnership Limited, which is authorised and regulated by the Financial Conduct Authority. FCA registered number 425432. Company registered in England and Wales No. 5265969. VAT registration number 162 9355 92. Registered address, 2200 Century Way, Thorpe Park, Leeds, LS15 8ZB.
The Sun
09-06-2025
- Business
- The Sun
A guide to interest rates, fees and costs of equity release in 2025
DECIDING to take out equity release is a big decision, so being fully informed and understanding the costs is important if you're thinking of using this form of financing. Equity release is a way for homeowners aged 55 or older to access money. It either comes as a home reversion plan or a lifetime mortgage. 2 A home reversion plan involves selling all or part of your home in exchange for a lump sum or regular income, while living typically rent-free until you die or move into long-term care and your home is sold. The lifetime mortgage is the most common form of equity release, and is a loan secured against your property. Interest will be charged on any money released but, unlike other types of lending, you are not required to make any monthly repayments. You can choose to repay the interest and part of the outstanding balance, but this is subject to certain limits and early repayment charges may apply above a set value. If you don't choose to repay the interest, it will compound, and the amount outstanding will continue to increase. Once you die or move into long-term care, the initial amount you borrowed from your provider, plus any accrued interest will need to be repaid, usually from the sale of your home. The setup costs and applicable charges will vary depending on your circumstances and which plan is the most suitable for you. But to get an idea of what you could be charged, we've explained how interest rates and fees cost in more detail. 2 What is the interest rate on equity release? Just like other financing options - like a mortgage or credit card - the interest you'll pay on equity release is set by the provider. It's worth getting in touch with an equity release provider to check what rates are available to you. Any rate you are offered could be influenced by your circumstances, such as your health and age. Are equity release rates rising? Lifetime mortgage interest rate options also change frequently. Lenders tend to base their plans on Gilt rates, or UK government bonds. So, when the yield on UK government bonds goes up, lifetime mortgage rates can follow suit. Gilt rates are also linked to the Bank of England's base rate, which has fallen since August 2024. Some economists are forecasting further cuts in the future but for now, any changes to the market or fluctuation of rates remains pure speculation. Again, seeking the advice of an equity release adviser is crucial. It is worth noting that you can choose an equity release plan with an interest rate that is fixed for the duration of your plan, to protect you from future rate increases. If rates fall, then you can get in touch with an equity release adviser again to look at potentially moving plans if it's suitable for your circumstances at the time. Dangers of equity release EQUITY release can be a good way to unlock cash in retirement - but there are some dangers to consider, according to The Sun's Tara Evans. Interest rates on lifetime mortgages are around 5.5%, with some topping 8%. This means they can be more expensive than a traditional mortgage and you should always consider downsizing first. You could end up owing more than you borrowed, although it will never be more than the value of your home. Using equity release to take cash from your home will reduce the assets you have to pass on to loved ones when you die. It is a long-term commitment and you may be charged an early redemption fee that can be as high as 25% if you want to pay it off. Be aware that equity release could affect or stop your benefits. Always seek advice from a qualified equity release adviser. How does interest on equity release work? Some people will choose to repay the interest rate in order to stop it compounding. To provide some idea of how much you could pay, consider this example. If you took out a £50,000 loan at an interest rate of 6.5%, the annual interest charged would be £3,250. If you wished to repay the interest monthly, this would equate to £270.83 per month. If you decide not to repay the interest and choose to let it compound, £3,250 would be added to your outstanding balance and interest the next year would be charged at 6.5% rate on a £53,250 loan which is £3,461.25 for the year or £288.43 a month. You may prefer to make partial interest payments to suit your budget. Anything you choose to pay will help to limit the roll up of interest if you want to preserve equity in your property for care costs or to leave to your loved ones. An equity release adviser will provide an illustration of what interest will be charged on your plan, and how the interest will roll up if no payments are made. What is the cost of equity release? There are other costs to consider with a lifetime mortgage besides the interest, such as: Application or arrangement fee Much like applying for a mortgage, some equity release policies may require an application fee to start the process. If there is an application or arrangement charge, your equity release adviser will include this in the fee section of the illustration. Financial Advice No one can take out equity release without advice from a qualified adviser. Different companies can charge different advice fees. Age Partnership, for example, provide initial advice for free and without obligation. Only if your case completes would their advice fee of £1,895 be payable. Calculate how much you could unlock Legal advice You'll need a solicitor to take care of the legal paperwork when taking out equity release. Part of their service may include securing a legal charge against your property, which will allow your equity release provider to release your funds. Legal advice fees may vary on a case-by-case basis. Valuation fee In order to get an estimate of how much equity you can release from a lifetime mortgage, your lender will need an accurate valuation of your home. This needs to come from a professional valuation, and not an estate agent's verdict. Some lenders may not charge a valuation fee, for others, the fees may differ depending on the price of your home. Interest Of all these costs, your interest charges will likely be the most expensive. What you eventually pay in interest depends on a number of things, from how long you stay in your home to the rate charged by your provider. If your adviser recommends a lifetime mortgage, they will find the plan that best suits your circumstances and priorities and they will provide you with full details of the interest that would apply, and the specific terms and flexibility of your plan. What is the total set-up cost? According to MoneyHelper, a government personal finance guidance website, you can expect to pay between £1,500 and £3,000 to set up your equity release plan. That excludes any interest that will accrue. Will I be charged if I repay my equity release early? You could be charged an early repayment fee if you decide to repay the loan earlier than expected. These fees can be expensive, so it's important to explore all your options, as it may be more beneficial to make repayments and reduce the balance over time instead. Can I get free financial advice for equity release? As advice is required before proceeding with equity release, Age Partnership can help you find out more and if it could be right for your individual circumstances. Through their service, initial advice is provided for free and without obligation. Only if your case completes would an advice fee of £1,895 be payable. Other lender and solicitor fees may apply. You should be aware that equity release requires paying off any existing mortgage. It will also reduce the value of your estate and impact funding long-term care. Age Partnership is a trading name of Age Partnership Limited, which is authorised and regulated by the Financial Conduct Authority. FCA registered number 425432. Company registered in England and Wales No. 5265969. VAT registration number 162 9355 92. Registered address, 2200 Century Way, Thorpe Park, Leeds, LS15 8ZB.
The Sun
06-06-2025
- Business
- The Sun
Can you pay back equity release?
WITH equity release, you are not required to make regular repayments. Instead, the amount borrowed, plus any accrued interest, is repaid when you die or move into long-term care. But is there a way you can pay back equity release early? 3 The most common form of equity release is a lifetime mortgage which is a loan secured against your property. Your lender will determine how much you can borrow based on the value of your home among other factors such as age, whether you're a joint or single applicant, and what you require the money for. This type of lending is only available to homeowners from the age of 55, and it's often used as a financing option in retirement. Your money can then be given in one lump sum or smaller amounts over time, known as drawdown, - but regardless of your choice, it's tax-free. Once you've repaid any existing outstanding mortgage, which is a condition of equity release, the money is yours to enjoy spending. If you decide to take out a lifetime mortgage, you'll be given the option to pay back the interest and in some cases part of the loan, but this is subject to certain limits and early repayment charges may apply above a set value. This means you can choose not to make payments if you wish and, unlike a traditional loan secured against the property, your home won't be repossessed. While these traits make it a viable form of borrowing for some homeowners, there are a few things to consider. Mainly, if you decide not to make repayments the interest you owe will compound. The other form of equity release is a home reversion plan, which involves selling part of your home in return for a lump sum or series of payments. You can continue living in your home, typically rent-free, until you die or move into long-term care. At this point, the property is sold and the proceeds from the sale are used to repay the plan provider for their share. Any remaining proceeds from the sale, if applicable, are distributed as a part of your estate. Unlike lifetime mortgages, home reversion plans do not accrue interest. However, the plan provider won't make a full-market offer for the percentage of your home that they buy. Both a lifetime mortgage and home reversion plan will reduce the value of your estate and impact funding long-term care. How can you pay back a lifetime mortgage? 3 Calculate how much you could unlock You can start making repayments on your lifetime mortgage arrangement once it begins. However, how much you can repay without incurring a penalty depends on your agreement and lender. If your main goal is to keep your loan as cheap as possible, then these are your options: Making repayments While you have the flexibility to make repayments at your own pace, it's important to keep in mind that this may come with some added costs. If you choose to not make interest repayments, that debt will compound, meaning that interest will be applied to the interest and the amount outstanding will grow more quickly. So, if you want to prevent the roll-up of interest, you may decide to repay the interest before it compounds. In instances where you can't, even repaying some of the money that month can make a difference. Overpay your loan If you find yourself with a surplus of cash, there are plans that may allow you to make overpayments on your lifetime mortgage. Reducing the amount outstanding will reduce the interest that accrues but make sure you know the terms of your plan as lifetime mortgage providers typically limit the amount you can pay before they begin charging early repayment fees. All new plans which meet the Equity Release Council standards must allow penalty free payments, subject to lending criteria. To protect the interests of equity release borrowers, this industry body sets an additional set of rules all providers who are members must adhere to. For example, this includes the no-negative equity guarantee - which means that your estate will never owe more than your property is worth when it is sold. It's important to note that plans from providers who are not part of the Equity Release Council do not have these requirements. Repay the entire loan If you're looking to exit from your equity release agreement in its entirety, then some providers allow you to repay your loan before you die or move into long-term care. But, this usually comes with an early repayment charge which is set out in your agreement. Early repayment charges are set differently depending on your lender and could include: Fixed charge - Where your lender states exactly how much the penalty will be for exiting the agreement. While your charges won't increase, it could lessen if it's based on a sliding scale. Often lenders reduce their fixed charges over time. So the longer you've had equity release, the less you need to pay in exit charges. Variable early repayment charge - Where your exit charges fluctuate. In this instance, these early repayment charges will typically be linked to the price of UK government bonds. Some lenders calculate your early repayment charges on the original capital borrowed, while others base it on your remaining balance. Dangers of equity release EQUITY release can be a good way to unlock cash in retirement - but there are some dangers to consider, according to The Sun's Tara Evans. Interest rates on lifetime mortgages are around 5.5%, with some topping 8%. This means they can be more expensive than a traditional mortgage and you should always consider downsizing first. You could end up owing more than you borrowed, although it will never be more than the value of your home. Using equity release to take cash from your home will reduce the assets you have to pass on to loved ones when you die. It is a long-term commitment and you may be charged an early redemption fee that can be as high as 25% if you want to pay it off. Be aware that equity release could affect or stop your benefits. Always seek advice from a qualified equity release adviser. Will I face early repayment charges? You can expect to face early repayment charges if you want to overpay more than your equity release provider allows or if you wish to pay off the loan altogether. However, exit fees can be hefty. It could cost thousands of pounds in fees to exit your agreement, and for some, it may be cheaper to keep servicing their interest repayments. So if you're looking to end your agreement, it's best to get in touch with a financial adviser to evaluate your options. Can you get equity release with no early repayment charges? 3 Calculate how much you could unlock Of course, there are some instances where you don't need to pay an early repayment charge. These include: Moving home All plans that meet the standards of the Equity Release Council give you the right to move home, but it does come with a caveat. Your lender must be willing to accept your new home as security for your loan based on certain criteria such as property type, condition and value. As with any move, you can expect valuation and legal fees to apply and if your new property is of lower value, you might need to repay a portion of the mortgage to maintain the lender's security. Downsizing In the instance where you move to a smaller home that's less valuable, you'll be downsizing. Equity release lenders treat downsizing differently to moving home. That's because if the new property is worth less, then they could receive a shortfall from the agreement. In these situations you're allowed to pay off some of the loan without facing an early repayment charge if your arrangement includes a downsizing protection clause. If not, then check with your lender to understand what will be payable – or seek the advice of a financial advisor to see what options are available. If your spouse dies or moves into long-term care Also known as a 'compassionate window' or 'significant life event exception', some equity release providers enable a clause called the 'compassionate repayment feature'. If you have a joint lifetime mortgage, this feature allows you to repay the loan penalty-free if your spouse or civil partner moves into long-term care or dies. This typically applies for up to three years following the significant life event. Unlike the rules set out by the Equity Release Council, this isn't something all lenders need to adhere to - so it's worth checking if your agreement has this feature in place. As advice is required before proceeding with equity release, Age Partnership can help you find out more and if it could be right for your circumstances. Through their service, initial advice is provided for free and without obligation. Only if your case completes would an advice fee of £1,895 be payable. Other lender and solicitor fees may apply. Age Partnership is a trading name of Age Partnership Limited, which is authorised and regulated by the Financial Conduct registered number 425432. Company registered in England and Wales No. 5265969. VAT registration number 162 9355 92. Registered address, 2200 Century Way, Thorpe Park, Leeds, LS15 8ZB.
Irish Times
27-05-2025
- Business
- Irish Times
Will equity release prevent you getting approved for Fair Deal?
If I choose to release equity in my home, what might happen to State contributions under Fair Deal if my nieces and nephews have to wheel me off to a high-security care home? I'm now 74 and might over-indulge if my bank account gets healthily inflated by one of these loans. I thought I heard something over the last few years about the HSE being unhelpful about care home contributions if the main asset has been diminished by a loan? Ms GB It's a good point. Equity release may be an attractive proposition for some people, as may Fair Deal, but there is a risk as they are both feeding from the same pond – in this case, the equity in your home. READ MORE Fair Deal, which regular readers will be familiar with, is a system that subsidises the cost of long-term nursing home for residents, according to their means. There are three elements – a portion of your income; a portion of your savings or assets; and, finally, a portion of the value of your home. This last one is the only thing we are concerned with here. If you are the sole occupier of the home, you are liable to pay 7.5 per cent of its value for the first three years of your residence in a nursing home, after which there is no further charge against your home. If you are a couple, the charge is halved to 3.75 per cent per year for the three years. If your spouse or partner needs to go into care, they pay the balance. Let's assume for the purposes of this piece that you live in Rathfarnham, in South Dublin County Council, where the median house price is €426,000. On that basis, your 7.5 per cent contribution would come to €31,950 a year – or close to €96,000 over the three years. As with any mortgage, the bank will fix a charge against your home to ensure it gets its money back. Most people availing of Fair Deal do not have that sort of cash available to them. So what they do is this: they apply for a Nursing Home Loan. This covers the contribution due on the family home with the money being paid from the sale of the property down the line, or after their death. Naturally, the HSE wants to be sure of getting its cash back if it is advancing you that sort of money. And the way it does this is by taking a charge on your home. When the house is sold, the transaction cannot be completed until anyone with a charge on the property has that charge satisfied, so Revenue – which will be collecting on the loan on behalf of the HSE – is confident that it can recover the money lent to the nursing home resident. The issue here, of course, is that any money you tap through equity release is also going to be subject to a charge against the property. How big that charge will be depends, of course, on what form of equity release you choose and the amount that you borrow. As we noted recently in an On The Money newsletter, there are now several different models for equity release. Several of these follow the traditional repayment model. The advantage here to the homeowner is that you are availing of a mortgage interest rate that will be lower than any rate you would get on borrowings by way of a personal loan. But, as with any mortgage, the bank will fix a charge against your home to ensure it gets its money back. If you borrow, say, €100,000 against that home which is valued at €426,000 in Dublin, there should be no issue, as there is plenty of equity for all comers. Repayment mortgages, of course, make sense only for people who can make the regular repayments – or have someone make those payments for them. When you're retired – and at 74, most of us would hope to be! – you're unlikely to have that repayment capacity. It can be very difficult to get Fair Deal if you have an equity release mortgage on your home, especially a lifeloan-type product That's where something like Spry Finance/Seniors Money's lifeloan comes in. Its big attraction is that you do not need to make any repayments during your lifetime. The downside of this is that the interest bill keeps mounting in the background, which means the amount due can be a multiple of what you originally took out in the loan, if you survive long enough. If you borrow €100,000 through a lifeloan, the amount repayable 10 years later will be close to double that, thanks to the joys of compound interest, and not far short of three times the amount borrowed in 15 years - which is why you need to think very carefully before going down this route. As a result, unsurprisingly, Spry Finance insists that there are no mortgages outstanding on any home it lends against. If there are, you will have to consolidate that amount in any loan you have taken, which could make for very expensive borrowings. Its promise to you is that the outstanding loan balance will never amount to more than the value of your home. But that is little consolation to the HSE and Revenue, which need to make sure that 22.5 per cent of the equity is available to them to repay any loan under Fair Deal. This is why it can be very difficult to get Fair Deal if you have an equity release mortgage on your home, especially a lifeloan-type product. If you are the sole occupier of the home, you are liable to pay 7.5 per cent of its value for the first three years of your residence in a nursing home However, Spry does now offer a feature where you can pay 6.8 per cent interest on your loan instead of the standard 6.7 per cent, and ringfence 20 per cent of the value of the property from exposure to the lifeloan. That gets you most of the way to the 22.5 per cent required under Fair Deal. However, you would still need to reassure the HSE and Revenue that you, or some guarantor, was good for the remaining 2.5 per cent of the property's value – €10,725 in our example – before they would consider extending Fair Deal to you. And, of course, in the absence of Fair Deal, you will be stuck with private nursing home charges of between €5,000 and €8,000 a month depending on location. So is it possible to get Fair Deal with equity release? Yes, but it is very difficult– and the HSE's initial position will almost inevitably be to refuse, unless you can show it where the money will come from to repay any Fair Deal loan. Please send your queries to Dominic Coyle, Q&A, The Irish Times, 24-28 Tara Street Dublin 2, or by email to with a contact phone number. This column is a reader service and is not intended to replace professional advice
