Independent financial advisers Moneywise Financial Planning has called for a tax concession on loan interest and on investment growth for those who take up the Bank of Ireland Life Loan. The interest-only Bank of Ireland facility allows older homeowners to borrow up to 30 per cent of the value of their homes.
According to Moneywise, the product will meet a market need but there are disincentives, one of which is the fact that the loan absorbs home equity that might otherwise be needed for long-term care costs. A tax concession on loan interest and on investment growth, Moneywise argues, would allow older people to enjoy the fruits of equity release without compromising their future wellbeing.
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