Housing
The housing crisis isn’t just confined to the younger generation Sinead Ryan advises on the options available to older people
Getting a mortgage isn’t an option in later life. This is because banks don’t like lending to people on pensions. Bank of Ireland will lend to the self-employed aged up to 70, and some of the non bank lenders new to the Irish market like Avant Money, ICS etc may also be prepared to discuss options. The term however will be fixed to the working life of any individual.
While for many young people the chance of finding, never mind affording a home of their own, is at a critical level, it is often the older generation which comes in for criticism for ‘rattling’ around in their big houses, empty-nesters taking up a family home by not downsizing or, more realistically, struggling on fixed incomes with soaring prices on gas, electricity and property tax, or fretting over the strident environmental measures retro-fitting older homes will require of all of us. So, when it comes to our homes, here’s what you need to need to know Finance Getting a mortgage isn’t an option in later life. This is because banks don’t like lending to people on pensions and previous poor experiences during the Celtic Tiger resulted in a number of cases in court and via the Ombudsman which showed up the financial sector for putting older people in debt. Some of these cases resulted in insolvency and repossessions and so these days, getting a loan is very difficult. Bank of Ireland will lend up to 70, for self employed people and some of the non bank lenders new to the Irish market like
People who rent out a room in their house can earn up to €14,000 p.a. tax free. They do not become ‘landlords’ in the traditional sense, so don’t have to worry about registering with the Tenancies Board. Rent can include food, household bills etc and you must be living in the home also.
Avant Money, ICS etc may also be prepared to discuss options. The term however will be fixed to the working life of any individual. Credit unions are usually the most flexible when it comes to term loans; as long as you have sufficient income to service it (and pension income is more secure than any other), you’ll be met with a smile.
16 Senior Times l January - February 2022 l www.seniortimes.ie
A small number of non bank lenders have again begun offering ‘equity release’ plans, or lifetime loans. These mortgages are not repaid during your lifetime, but after you pass away, from the sale of the property. The upside is you get cash now; the downside is that the interest roll up can be hefty, and because the ‘term’ of the loan is unknown, it could be many years before it is able to be repaid. That means the
