Home equity loan, was 30k now risen to 200k

Notmegov_2

Hi

Just had a chat to my Aunt (85) she took out a loan for one of her brothers for 30K about 20 years ago this loan has now been sold to bank of Ireland and they claim its now worth 200k, this loan is due to be paid in full in a few years time.

It just sounds wrong, she will be forced to sell her house and have very very little left.

Any help would be great

redpete

The increase in the value doesn't sound wrong. I believe these loans claim a fairly large % of any increase in value of the property - over 20 years this would be significant.

I would be surprised if it needs repaying at a fixed date (although I'm not an expert), I thought they called in the loan when the property was sold. Certainly worth checking the contract very carefully.

Notmegov_2

Thank you Redpete