Lifeloan phone line

Bank of Ireland provided the Lifeloan equity release product between 2001 and 2010. The product – which was sold in accordance with all regulatory requirements – was popular with some customers because it gave them access to funds they requested but with no repayment for the remainder of their lifetime. Unlike other loans which are repaid on a monthly basis from the point at which the loan is drawn down, for Lifeloan there may be years or decades before repayment is required.

To ensure customers would understand the product, the information provided clearly explained the terms of the loan. Most importantly, before any Lifeloan was agreed it was a requirement for each customer to obtain independent legal advice – and to show that they had taken that legal advice – to ensure that customers fully understood the terms and conditions.

Lifeloan was set up on a 15 year fixed rate and at the end of the 15 year fixed period the product rolls to a variable rate (currently 3%). Customers can pay off the loan early if they wish, and many have done this.

We have a phone line for Lifeloan customers to contact us and we can support them with any queries they may have – 1800 946 146 (9.30am to 4.30pm, Monday to Friday).

Lifeloan product information included this worked example below, information on how the loan is repaid, and direction to obtain independent legal and financial advice:

Working example of Life Loan

A couple aged 75 and 73 own a home worth €250,000. They take our a Life Loan in May 2009 at an APR of 4.9%*. One of the couple passes away in 2013 and the other moves permanently into a retirement home in December 2024.

The amount that the couple could borrow in May 2009 is €62,500 (€250,000 x 25%).

Based on an APR of 4.9%* the total (including the interest) due at the end of each year between the years 2010 and 2024 would be as follows:

2010 2011 2012 2013 2014 2015
€66,068 €69,839 €73,826 €78,040 €82,494 €87,204
2016 2017 2018 2019 2020 2021
€92,181 €97,443 €103,006 €108,885 €115,101 €121,671
2022 2023 2024
€128,617 €135,958 €143,719

* This APR is used for indicative purposes only and is subject to change

In December 2024, the outstanding balance would be €143,719 which comprises the original loan of €62,500 plus the accumulated 15 years’ interest of €81,219.22

How your Life Loan is repaid

No loan repayments are required during the term of the loan. Instead, the interest accumulates and is added to the loan balance.

Eventually, the original loan plus the interest will be paid back in full from the proceeds of selling your house. If the sale proceeds are less than the amount of the loan at that time, the Bank will not look to you or your estate to make up any shortfall between the proceeds of sale and the balance owed on Life Loan. Any surplus between the sale proceeds and the amount required to pay back the loan remains with you or your estate.

Do I need Independent financial advice?

We would strongly recommend to customers that they obtain independent financial advice as it is important that customers fully inform themselves on all the financial options available to them. In the event that customers do decide to proceed with the Life Loan option, it is also important that they fully understand both the terms and conditions and the drawbacks associated with it.

Do I need a solicitor?

Yes. It is a condition of the loan that all borrowers obtain independent legal advice.