You can choose to pay the Set-Up Fee by cheque OR the fee can be included in your Lifetime Loan (and deducted from the amount being borrowed when the funds are paid out to you). If you decide to include the fee in your Lifetime Loan you are borrowing the fee, and the part of your loan balance associated with the fee will grow over time as indicated in the table below (assumes fixed interest rate of 6.70% p.a. throughout the life of the loan):
The illustrative figures in the fee table below assume a loan start date of the 1 January 2024.
|Estimated Overall Cost of Set Up Fee
Loan Variation Fee: €500 – Applies to all variations
Payable for any variations during the life of the loan, e.g. adding or removing a borrower, changes to the registered security or title, etc.
You will also be liable for any 3rd party costs incurred by Seniors Money when any variation is required during the loan (e.g. legal fees). The 3rd party costs will be calculated at the time of the variation and we will provide you with details of these costs at the time.
Loan Redemption Fee: €100 – Payable upon full repayment of the loan
This fee contributes to the costs arising when discharging a loan, e.g. legal or registration fees incurred by Seniors Money in redeeming the mortgage.
Early Repayment Charge (“ERC”)
Because this is a fixed rate product, if you make any loan repayments before you are required to, this will lead to unexpected costs for Seniors Money. An Early Repayment Charge (ERC) may arise if you repay some or all of the loan within 10 years of taking it out.
Details of how the ERC is calculated and of the many exemptions from it can be found here.
In addition to fees payable to Seniors Money, you will be responsible for agreeing and paying any fees your own solicitor will charge for providing advice to you.
In all cases this will include their fee for providing independent legal advice to you on the loan you are entering into.
Where relevant, additional legal fees may arise, e.g. separate independent legal advice for a person not on the title deeds or for an occupier who will not be one of the two nominated residents.