Sir, – Bank of Ireland’s announcement to begin offering loans to help homeowners to downsize is a welcome development. News reports include details of a proposed borrowing rate of 7 per cent.
The downsizing loan will be secured by two properties, not one. The loan will be repaid immediately and in full once the “oversized” property is sold, expected to be within 12 months.
Why is a loan to downsize almost twice the price of a loan to start or move up? What risk is the bank acquiring that justifies the extraordinary difference? – Yours, etc,
DIARMUID Ó CINNÉIDE,
READ MORE
Garryowen,
Limerick.
