Your Options with Ireland’s only Lifetime Loan
A Lifetime Loan allows you to borrow a certain percentage of your home’s value. It comes with a fixed interest rate for life.
For clarity, you’re not selling a share of your property. Instead, you’re borrowing money, keeping your home as a security. You still completely own your home and can live in it for as long as you want.
A Lifetime Loan does not require regular payments, however you may choose to make optional repayments to help manage the loan balance. The loan is repayable upon the borrower’s demise, the property’s sale, or when the borrower stops living in the property permanently.
A No Negative Equity Guarantee protects homeowners to ensure they never owe more than their property’s value. If you adhere to the loan’s terms and conditions, you will not have to make repayments worth more than the home’’s value. That holds true even if the loan and accrued interest on the property are higher than its net sale value.
Requirements for a Lifetime Loan
Spry Finance is the sole provider of Lifetime Loans in Ireland. The provider has the following requirements:
- Your home must have a minimum value of €250,000 in Dublin, or €175,000 in other cities.
- All property owners must sign the equity release agreement, with a maximum of two residents over the age of 60.
- The property must be your primary residence and should not have an existing mortgage.
Early Repayment Charge
A Lifetime Loan from Spry Finance delivers a fixed interest rate. If you repay your loan before the required timeline, an Early Repayment Charge (ERC) could arise.
An ERC is triggered when you repay all or some part of your loan within 10 years of getting the equity release. The ERC will apply to the remaining period within the decade. For example, if you pay a loan 7 years after taking it out, the ERC will apply for 3 years.
After the 10-year mark, homeowners are exempt from this charge. Homeowners aged 78 or more are exempt from ERC after their 88th birthday.
For example, if a homeowner is aged 81 when they take out a Lifetime Loan and pay it back 4 years later at the age of 85, they will only have to pay the ERC for the 3 years leading to their 88th birthday instead of 6 years, as a younger applicant would.
Help to Manage your Loan Payments
Although regular payments are not required, homeowners can make optional payments to manage their loan balance. You can make regular monthly payments to the lender. Or, you can repay up to 10% of the loan amount annually without any Early Repayment Charges.