Switching your mortgage to a Lifetime Loan

Whether your existing mortgage is variable, fixed rate, or interest only, it may be possible for you to refinance to a Spry Finance Lifetime Loan and access some of the equity built up in your home at an interest rate that is fixed for life.

Recently, we’ve found an increasing number of our customers are choosing to refinance an existing mortgage by switching to a Lifetime Loan. Some are concerned about rising interest rates and the impact that this is having on the affordability of their current mortgage repayments. At Spry Finance, we’re committed to providing choice for older homeowners in Ireland and a Lifetime Loan provides an alternative option for some to meet their specific financial needs.

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Can I switch to a Lifetime Loan?

If you are aged 60 or older you may be able to refinance an existing mortgage or other debt secured on your home, subject to Spry Finance’s eligibility and lending criteria.

Find out more about our eligibility criteria »

Why switch to a Lifetime Loan?

There are many reasons an equity release solution like a Lifetime Loan may be appealing. Here are some of the most common reasons we see people switching their existing mortgage to a Lifetime Loan:

    • To reduce or manage unaffordable monthly mortgage repayments.
    • For certainty around interest rates. As the Lifetime Loan interest rate is fixed for life it will never be subject to increase.
    • To repay the lump sum amount due on an interest-only mortgage.
    • To pay off an existing mortgage and also raise funds for other purposes.
    • Where they have been unable to refinance with traditional lenders because of their age or a previous credit issue.

So, what is a Lifetime Loan?

A Lifetime Loan is a type of equity release which allows people over 60 who own a home (or want to refinance an existing mortgage) to borrow money against the value of their home, while retaining full ownership of the property.

There are no regular repayments required with a Lifetime Loan. There is, of course, the option to make repayments if you want but these are entirely optional. If you choose not to make repayments, the loan balance grows over time as compound interest is applied. The loan only becomes repayable when the property is sold, after the borrower goes into permanent residential care, or from the borrower’s estate.

Optional Repayments

If you do want to make repayments, you can choose to make regular repayments of up to 10% of the initial loan amount each year without incurring an early repayment charge.

Interest Rate Certainty

The interest rate on a Spry Finance Lifetime Loan is fixed for life, providing you the rate and cost certainty other mortgages cannot.

No Negative Equity Guarantee

All Spry Finance Lifetime Loans come with a ‘No Negative Equity Guarantee’. This means that no matter how long the loan lasts, the amount to be repaid will never be greater than the value of the property on which the loan is secured.

More information about our No Negative Equity Guarantee »

What to do next?

Switching to a Lifetime Loan is simple. Get in touch with us to find out about your eligibility, options and enquire about a loan.