Spry launches Lifetime Loans for older owners of second homes and Buy-To-Let properties

Spry has launched two new products to provide increased financial choice for older people. The Second Home Lifetime Loan and the Buy-To-Let Lifetime Loan have been developed in direct response to customer demand.

The new products differ from Spry’s standard Lifetime Mortgage because they are secured against a property other than the borrower’s primary residence.

The Second Home Lifetime Loan will enable over-60s to release some of the value in a second property they own in the Republic of Ireland that is not their primary residence. The property must not have a tenant or be rented, although it may be let on a short-term basis for up to a maximum of eight weeks per year.

The Buy-To-Let Lifetime Loan will be available to those aged over 60 to release equity from a property they own that is a residential investment or rental property in the Republic of Ireland. The property must not be lived in by the customer or their family and must have a tenancy in place registered with the Residential Tenancies Board (RTB).

With both new products, a qualifying property must have a minimum value of €300,000 if it is in Dublin, or €225,000 elsewhere. The minimum loan amount, at €50,000, is higher than the Spry standard lifetime mortgage (which is secured on a primary residence) and the interest rate of 6.95% is fixed for the duration of the loan.

As with all Spry products, the loan does not need to be repaid until the borrower dies and every loan carries a No Negative Equity Guarantee, which means the amount to be repaid can never be more than the value of the property. Monthly payments are not required, although borrowers may choose to make optional repayments to manage the balance of the loan over time.

The new products bring to six the number of equity release mortgages and loans that Spry now offers older people in Ireland. They line up alongside our Standard and Green Lifetime Mortgages, and the Guaranteed Inheritance Lifetime Mortgage and the green version of the same.

Figures from the most recent census found there were more than 66,000 holiday homes in Ireland in 2022, while RTB data indicates that as many as 57,000 properties with active tenancies are owned by landlords aged over 65.

Spry CEO John Moriarty said: “A Spry Lifetime Mortgage enables homeowners aged over 60 to release value in their home without relinquishing ownership, selling up or moving out. The Second Home Lifetime Loan and Buy-To-Let Lifetime Loan extend this concept to other property assets. Both products have been developed in response to feedback from our customers.

“Spry launched in 2021 with just the Standard Lifetime Mortgage; we now offer six later life lending products and intend to roll out more in the future to increase financial choice for Ireland’s growing older population.”

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