Spry Finance, a provider of lifetime mortgages, has launched two new equity release products in Ireland.
The Second Home Lifetime Loan and the Buy-To-Let Lifetime Loan are designed to provide increased financial choice for older people.
Spry said these products differ from its standard Lifetime Mortgage because they are secured against a property other than the borrower’s primary residence.
The Second Home Lifetime Loan will enable over-60s to release some of the value in a second property they own in the Republic of Ireland that is not their primary residence.
"The property must not have a tenant or be rented, although it may be let on a short-term basis for up to a maximum of eight weeks per year," Spry Finance explained in a statement.
The Buy-To-Let Lifetime Loan will be available to those aged over 60 to release equity from a property they own that is a residential investment or rental property in the Republic of Ireland.
"The property must not be lived in by the customer or their family and must have a tenancy in place registered with the Residential Tenancies Board (RTB)," the company said.
With both new products, a qualifying property must have a minimum value of €300,000 if it is in Dublin, or €225,000 elsewhere.
Spry Finance said the minimum loan amount, at €50,000, is higher than the Spry standard lifetime mortgage and the interest rate of 6.95% is fixed for the duration of the loan.
"As with all Spry products, the loan does not need to be repaid until the borrower dies and every loan carries a No Negative Equity Guarantee, which means the amount to be repaid can never be more than the value of the property," the company added.
John Moriarty, CEO of Spry Finance said its goal is to grow the later life lending sector to more than €200m annually within the next three years, driven in large by new products.
"Spry launched in 2021 with just the standard lifetime mortgage; we now offer six later life lending products and intend to roll out more in the future to increase financial choice for Ireland’s growing older population," he added.
