New Hybrid Mortgage Offers Flexible Refinancing Options

Oates Breheny Group has welcomed the launch of an innovative, new later-life mortgage product that offers homeowners aged over 55 greater choice and flexibility in managing their finances.

The Payment Reward Lifetime Mortgage, developed by Spry Finance, is the first product in the Irish market to combine key features of a traditional mortgage with the long-term security of a lifetime mortgage. The product enables homeowners to release equity or refinance an existing mortgage without the need to sell or downsize.

According to Oates Breheny Group, this hybrid approach could be a game-changer for older homeowners – particularly those with interest-only loans approaching maturity.

Oates Breheny Group Director, Shane Breheny, said: “This is a timely and innovative solution for older homeowners in Sligo who are seeking a sustainable way to manage their financial obligations in later life, without giving up the home they love. The Payment Reward Lifetime Mortgage gives people more choice to help manage their financial obligations – whether that is someone facing a capital payment on an interest-only mortgage, or someone juggling significant expenses, such as family support or retirement planning.”

The Payment Reward Lifetime Mortgage is structured in two stages:

• Stage 1: This is the Payment Reward Period, a contracted period of between at least one and five years (maximum of 10 years) where interest-only repayments are made at a discounted Reward Rate of 5.70%.

• Stage 2: Once all payments are made during the Payment Reward Period, a Second Reward Rate of 6.70% applies. No further monthly repayments required, although borrowers may still make optional payments of up to 10% of the original loan annually.

Should a borrower miss three or more payments, the loan reverts to the Contracted Rate of 6.90%, with no risk of arrears or repossession. The loan is only repayable when the borrower passes away, sells their home, or moves into long-term care. A No Negative Equity Guarantee also applies to the loan – meaning borrowers or their estates can never owe more than the net proceeds of their home’s sale.

Oates Breheny Group emphasised the importance of having more tailored financial products available for older borrowers: “Like much of Ireland, [Insert county] has a growing older population, with an increasing number of homeowners carrying mortgages into retirement. Many clients come to us feeling stuck between looming loan repayments and a desire to stay in their home. They are looking for financial choice, and this product offers a smart alternative that can relieve pressure without forcing a move or drawdown of retirement savings.”

The Payment Reward Lifetime Mortgage is available to homeowners aged 55 and older, with loans available from €50,000 to a max of €35,000, subject to an affordability assessment. Properties must be primary residences in the Republic of Ireland, with a minimum value of €300,000 in Dublin and €225,000 elsewhere.