Spry Finance Offering Lifetime Loans

04 Jan 2021 | 02.46 pm

Spry Finance Offering Lifetime Loans

5.5% borrowing secured on family home

04 Jan 2021 | 02.46 pm

Spry Finance, operated by Seniors Money Mortgages (Ireland) DAC, is making available no-repayment loans to over-60s secured on the borrower’s home.

Instead of monthly repayments, interest is added to the loan balance and the loan is not repayable until after the borrower dies or moves out of the property.

The interest rate charged on the compound borrowing is 5.50% per annum, which would double the loan balance in 13 years.

The amount people can borrow depends on their age and the value of their home, ranging from 15% of the property value for a 60-year-old to 40% for a borrower aged 85 or older.

Lifetime loans were last seen in Ireland in the 2000s before the property crash.

Spry Finance director Derek Handley commented: “There is strong demand from a significant number of older homeowners who want to use the equity they have built up in their home to provide themselves with the necessary funds to make their home or other parts of their lives more comfortable.”

He added that mortgage brokers can refer clients to Spry Finance but cannot directly submit applications.

“It is in client’s best interest that the provision of comprehensive information on lifetime loans is handled by a specialist team who focus solely on this product. We’ve just completed a pilot scheme with the hundreds of people who were already on our waiting list, and the first loans have already been drawn down. We’re ready now to open the doors to everyone who is interested.”

 

 

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