Seniors Money’s Lifetime Loan is a fixed rate product, which gives certainty about what the loan balance will grow to at any point in the future. There is no risk that the interest rate will change over the life of the loan.
The fixed rate currently offered is 4.95% per annum fixed for life.
The fixed rate you will be charged will be confirmed in your Loan Offer, together with a forecast of how the loan will grow over time based on that fixed rate.
The Annual Percentage Rate (“APR”) depends on how much you borrow. Your APR will be calculated and provided to you during the application process. Representative APR on a loan amount of €75,000 over an assumed term of 15 years at a 4.95% fixed rate would be 5.22% per annum. The total cost of credit would be €82,433.
The APR Charges include a Set Up fee of €1,500 (inclusive of a valuation fee of €180 and a loan redemption fee of €100 (payable at the end of the Lifetime Loan term) .
Interest is added to the loan balance
Unlike a standard mortgage, you are not required to make regular mortgage repayments. Instead, interest is added to the amount you have borrowed.
Interest is calculated on the daily loan balance, compounded monthly to your loan account, and becomes repayable, together with the principal, at the end of the loan period.
This means that the loan balance continually grows throughout the life of the loan. This is the single most important thing you need to appreciate about a Lifetime Loan. During the consultation process we will provide you with calculations of how much your own loan would grow to over various periods of time.
To qualify for a Lifetime Loan you (or the younger borrower if there are two) must be at least 60 years of age. The property must be of standard construction, located in the Republic of Ireland and be worth at least €250,000 if in Dublin or €175,000 if elsewhere.