Standard Lifetime Mortgage by Spry Finance
A Lifetime Mortgage allows you to release equity in your property, tax free, while retaining full ownership of the property, allowing you to live in the property for as long as you wish. You do not have to make monthly repayments unless you want to. This product is perfect for the homeowner that is asset rich but cash poor and would like to get more out of their money, whether that be paying off other loans to rid yourself of monthly overheads, going on holidays away, or upgrading the home or car to be more suitable for your changing needs.
Criteria to Apply
In order to apply for a Lifetime Mortgage you must meet the following criteria:
– You must be over 60 years of age, if there are two applicants, the younger one must be over 60
– You must own the property the loan is in relation to
– Must be a resident of the Republic of Ireland
– You must borrow a minimum of €30,000
Property Eligibility
For your property to be eligible, it must meet the following criteria
– It must be your primary residence
– It must be standard construction located in the Republic of Ireland
– Must have a minimum value of €225,000 outside Dublin and €300,000 in Dublin
– It must have a maximum of two named owners on the deeds of the property
– It must be mortgage free. If there is a small existing mortgage or charge on the property, this must be cleared either from savings or from the proceeds of your Lifetime Mortgage
– Certificate of Title must be confirmed by your solicitor
– Home insurance must be maintained at all times on your property
– All local property tax charges must be up to date
How much can I Borrow?
– The minimum loan size is €30,000
– The amount you can borrow is calculated as a percentage of your home’s value and depends on your age, subject to an overall maximum of €500,000 regardless of age or property value
– Customers aged 60 may borrow up to a maximum 0f 15% of the value of their property, this value increases in increments of 1% per year as shown below
– If there are two applicants, the amount available will depend on the age of the younger applicant
– In order to obtain an accurate value of your property, an independent valuer will be appointed by Spry Finance as part of your application
You can use Spry’s Lifetime Mortgage Calculator to help visualize the loan limit, impact of making optional repayments and the equity remaining in your property after a certain number of years.
Interest Rate
There is a 6.95% per annum interest rate, added to your loan on a monthly basis. The rate may change before the loan is drawn down. The loan offer is valid for 30 days after it is issued regardless of rate changes.
Optional Repayments
You can chose to pay up to 10% of the original loan amount per year to service the interest and manage the balance of your loan without incurring early repayment charges should you wish to.
– You can do this by making regular monthly direct debit repayments or by electronic payment
– Payments in excess of 10% of the original loan balance per year may result in an ERC
Green Lifetime Mortgage
The Green Lifetime Mortgage mirrors all the features of the Standard Lifetime Loan with a reduced interest rate of 6.75% and a lower set up fee of €1,350.
How do you qualify?
– If you have an existing Building Energy Rating (BER) of B3 or better and can supply a BER certificate at the time of the loan application
– If you intend to use your Lifetime Mortgage to fund home improvements to achieve a BER rating of B3 or better within 12 months of drawing down your loan
– If you intend to use a minimum of 50% of your Lifetime Mortgage for qualifying home improvements within 12 months of drawing down the loan
Green Lifetime Mortgage Example
*Based on a 15-year term
Qualifying Reasons
– Wall, attic & floor insulation
– Windows & door upgrades or replacements
– Ventilation systems
– Renewable energy systems, heat pump, solar panels
– Sustainable water / heating systems
– Boiler upgrades & pipe insulation
– Installation of energy efficient controls
– Deep retrofit (e.g. SEAI Deep Retrofit Grant)
Advice
Your MyMortgages advisor will advise you on the suitability of a Lifetime Mortgage with regards to your specific circumstances.
We strongly recommend that you seek additional financial advice from a qualified source about any possible effect that a Lifetime Mortgage could have on any means-tested state benefits and other related matters.
You must seek independent legal advice from a solicitor in order to complete your mortgage application
We would strongly recommend that you discuss your intention to apply for a Lifetime Mortgage with your family
We recommend that the set up fee of €1,500 be paid up front in order to avoid the fee increasing in value