Spry Finance launches Ireland’s first ‘hybrid’ mortgage for homeowners over 55

Spry Finance is proud to announce the launch of the Payment Reward Lifetime Mortgage, a ground-breaking new product designed to give homeowners aged 55 and over more choice and flexibility when managing their finances in later life.

The Payment Reward Lifetime Mortgage combines key features of a traditional mortgage with the long-term security of a lifetime mortgage. It allows homeowners to release equity from their home or refinance an existing mortgage without the need to sell or downsize.

It features an initial Payment Reward Period of committed monthly interest-only payments, after which the customer is not required to make regular payments. However, the customer can choose to continue to make optional repayments.

The product is designed to give older borrowers greater choice and control at a time of life when many are juggling mortgage repayments, college expenses for adult children, and pension contributions.

Couple in their fifties making dinner, availing of the mortgage for homeowners over 55 with Spry Fiinance

The Payment Reward Lifetime Mortgage may be of particular interest to homeowners aged over 55 who are facing capital repayments at the end of an interest-only mortgage term.

John Moriarty, CEO of Spry Finance, said: “The Payment Reward Lifetime Mortgage responds directly to the needs of customers who want more choice to help manage their financial obligations without giving up the home they love or drawing heavily on their savings.

“By combining key features of both a traditional and lifetime mortgage, it gives people a sustainable and flexible long-term solution at a critical life stage. Whether it is a homeowner with an interest-only mortgage and a capital payment due soon, or someone facing significant expenses as they plan for retirement, the Payment Reward Lifetime Mortgage gives people additional choice over their financial future.”

How The Payment Reward Lifetime Mortgage works

The Payment Reward Lifetime Mortgage is structured in two stages:

Stage 1: This is the Payment Reward Period, which is a period of between at least one and five years (up to a maximum of 10 years) where committed interest-only repayments are made, during which time the borrower benefits from a discounted interest Reward Rate of 5.70%.
Stage 2: Once all payments are made during the Payment Reward Period, the Second Reward Rate of 6.70% will apply, and no further monthly repayments are required. Borrowers may still make optional repayments of up to 10% of the original loan amount annually, if they choose to.

Should a borrower miss three or more committed payments, the loan simply moves to the Contracted Rate of 6.90%, with no risk of arrears, repossession or collections activity. The product’s flexibility ensures that even in unexpected circumstances, where monthly repayments become unaffordable, homeowners can remain in their homes without undue financial pressure or stress.

The loan, plus any accumulated interest, is only repayable after the borrower dies, sells their home, or moves into permanent care. Spry’s No Negative Equity Guarantee also ensures that borrowers or their estates will never owe more than the net proceeds of their home’s sale.

The Payment Reward Lifetime Mortgage is available to homeowners aged 55 and older, as opposed to 60 for Spry’s other Lifetime Mortgage products. Loans are available from €50,000 to €350,000, subject to the borrower’s age, property value, and an affordability assessment. Properties must be primary residences in the Republic of Ireland, valued at a minimum of €300,000 in Dublin and €225,000 elsewhere.

Trevor Grant, Chairperson of Irish Mortgage Advisors, the industry body representing regulated mortgage intermediaries, said: “Innovation in the mortgage market is essential for customers. Not every customer is the same. This new product from Spry provides a very real option to an increasing and specific age cohort of customers who require additional choice and flexibility in payment options.”

FIND OUT ABOUT THE PAYMENT REWARD LIFETIME MORTGAGE