What is Equity Release?
Equity is the difference between the current value of your house and the amount you owe on it. For example, if your home is worth €400,000 and your mortgage is €100,000, then you have equity in your property of €300,000.
If you own your home, an equity release scheme could allow you to release some of the value of your home without having to make repayments during your lifetime, move out or sell your home on the open market. The conditions of equity release include that you cannot have an existing mortgage on your home and that you have reached a certain age, for example 60, to avail of the loan.
Equity release schemes are different to topping up or increasing your mortgage. To find out more about equity release, visit www.ccpc.ie/consumers/money/mortgages/equity-release/ and here https://www.spryfinance.ie/equity-release/
What is a Lifetime Loan?
A Lifetime Loan is another name for equity release.
A Lifetime Loan allows people over 60 to release value from their homes, at an interest rate fixed for the duration of the loan. It is a valuable financial planning tool for people aged 60 and over who own their own home and wish to release a lump sum from their asset.
At the moment, Spry Finance are the sole provider of Lifetime Loans in Ireland.
What is a Lifetime Loan used for?
A Lifetime Loan is most commonly used for 4 main reasons:
Cash fund for lifestyle maintenance and ‘rainy day fund’
Re-financing loans eg. mortgages & other debts
Home improvements/purchases for the home
Cars and holidays
Note: You still own your home
The borrower continues to own their home, and the loan becomes repayable when the property is sold or within 12 months of the borrower’s death.
We offer a No Negative Equity Guarantee
The Spry Finance No Negative Equity Guarantee means that no borrower (or their estate) will never have to repay more than the net sale proceeds of their property even if the loan balance exceeds this amount.
Optional Re-Payments
Spry Finance provides flexibility as well as certainty for customers. While regular repayments are not required, borrowers can choose to reduce their loan balance by making optional repayments of up to 10% of their original loan amount each year without incurring charges.
Interest Rates
The Lifetime Loan is a fixed-rate product which provides certainty about the growth of the loan balance.
The interest on the loan is compounded over time (added to the loan amount each month) and therefore the loan balance grows throughout its life. Borrowers are not required to make regular repayments, but can choose to do so to pay the interest on the Lifetime Loan on a monthly basis.
