Payment Reward Lifetime Mortgage by Spry Finance
A Payment Reward Lifetime Mortgage allows you to release money from your home tax free or refinance an existing mortgage, without having to sell your home. You retain full ownership and continue to enjoy the benefits of the property. The key difference to a Standard Lifetime Mortgage is that you are required to make committed monthly payments to service the interest for an agreed Payment Reward Period, during which time you will benefit from a reduced interest rate, known as a Reward Rate (see Table 1). At the end of the agreed Payment Reward Period, customers who have made all agreed payments will be rewarded with a Second Reward Rate for the remainder of the loan. They will no longer need to make monthly payments. However, they will retain the option to continue to make optional repayments of up to 10% of the original loan amount per year to manage the balance of their loan without incurring an Early Repayment Charge (ERC). The loan will usually be repaid from your estate, when you move into long term care or on the sale of your property.
2 minute 54 second video from Pascal Curran from Advice First Financial introducing the Payment Reward Lifetime Mortgage by Spry Finance
Who is it suitable for?
A Payment Reward Lifetime Mortgage designed for customers who
- Are aged 55 or over. If there are two of you, the younger person must be aged 55 or older.
- Own a residential property in the Republic of Ireland.
- Are resident in the Republic of Ireland.
- Own a non-tenanted property.
- Want to borrow a minimum of €50,000.
Reward Rate Table
Reward Rate
Interest Rate: 5.70%
When it Applies
During the agreed Reward Period
Description
This rate will apply for the agreed Payment Reward Period where customers continue to make monthly interest payments to their account.
Second Reward Rate
When it Applies
After successful completion of the Payment Reward Period.
Description
This is the Standard Lifetime Mortgage interest rate available at the time you are taking out your loan. It will apply for the remainder of your loan, once all committed payments are
made during the agreed Payment Reward Period.
Contracted Reward Rate
When it Applies
Only appiles where customers do not make agreed payments during the Payment Reward Period.
Description
This increased rate will only apply if you fail to make committed payments during the Payment Reward Period, as agreed. It reflects the additional costs incurred by Spry Finance in funding your loan.
Note: To provide cost certainty, all three interest rates are fixed and will be agreed with you before taking out your loan.
Currently there is only 1 provider of this type of lending in Ireland: Spry Finance
Seniors Money Mortgages (Ireland) DAC trading as Seniors Money, Spry Finance and Spry is Regulated by the Central Bank of Ireland.
For your property to be eligible
- It must be your primary residence.
- It must be of standard construction located in the Republic of Ireland.
- It must have a minimum value of €225,000 outside of Dublin or €300,000 in Dublin.
- It must have a maximum of two named owners on the deeds of the property.
- If there is an existing mortgage or charge on the property, this must be cleared either from savings or from the proceeds of your Payment Reward Lifetime Mortgage.
- It must not be used for commercial purposes.
- 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 actual loan amount will be determined on a case-by-case basis based on the customer’s age, the agreed Payment Reward Period and the value of the property being put forward for security.
- The minimum that can be borrowed is €50,000 up to a maximum of €350,000.
- The maximum that can be borrowed is determined using Loan to Value (LTV) ratios based on the age of the youngest borrower and the Payment Reward Period.
- For joint applications, the younger borrower’s age is used.
- An independent valuer will be appointed by Spry Finance to determine your property value.
Affordability Assessments
- Current income (e.g. payslips and up-to-date P60)
- Rent-a-Room income
- Pension income
- Other income
- Credit history
How much will I repay during the Payment Reward Period?
Details on how much one will repay during the Payment Reward Period
• Committed monthly interest payments must be made throughout the agreed Payment Reward Period.
• The minimum agreed Payment Reward Period will depend on your age and is outlined in the
Loan To Value Table – See Table 3.
• For customers under the age of 60, the minimum Payment Reward Period must take them up to their 60th birthday (i.e. if a customer is 55, the minimum Payment Reward Period will be for 5 years, if a customer is 56 the minimum Payment Reward Period will be for 4 years etc.)
• For customers between the age of 60 and 79, a minimum Payment Reward Period of 1 year will apply.
• For customers over the age of 79, a maximum Payment Reward Period of 1 year will apply.
• Customers may choose to pay more than the committed monthly interest payments. As long as the combined value of the committed interest payments and additional optional repayments do not exceed 10% of the initial loan amount per year, an Early Repayment Charge (ERC) will not apply.
• However, all payments after the end of the agreed Payment Reward Period are completely optional.
What happens after the Agreed Payment Reward Period?
- No payments are required after the agreed period ends.
- If all payments were made, the Second Reward Rate will apply automatically.
- You can still make optional payments up to 10% of the original loan per year without penalty.
What happens if I miss repayments?
- Missed committed interest payments during the Payment Reward Period, where they occur, will be added to your loan balance and will be subject to compound interest (as per the standard application of interest to a Lifetime Mortgage).
- Customers will be alerted to any missed committed interest payments during the Payment Reward Period and will be given 3 months within which to make up the missed payments.
- Where customers miss (and do not make up) 3 interest payments during the Payment Reward Period, they will forgo the Reward Rate and revert to the Contracted Rate. Where this occurs, customers will not benefit from the Second Reward Rate.
- Customers will retain the Spry Finance No Negative Equity Guarantee.
- There is no risk to security of tenure (i.e. no payment arrears or risk of repossession).
It may not be suitable for customers who
- Can’t commit to making monthly interest payments for the minimum Payment Reward Period.
- Have uncertain income to pay the interest over the agreed Payment Reward Period.
- Have savings or investments that they can consider using instead.
- Have sufficient long-term income which would mean that they may qualify for a standard residential mortgage.
- Are concerned about the effect of reduced equity in their home, from taking out a Lifetime Mortgage or if they fail to make the committed interest payments.
- Want to ensure that they retain a fixed portion of the net sales proceeds of their property to fund future needs (e.g. to pass on to their heirs).
Optional Repayments
Customers can reduce the amount they owe by making optional repayments. Where total repayments (i.e. committed interest payments plus optional repayments) in any one year (starting on the completion date of the loan and any anniversary thereafter) do not exceed 10% of the original loan amount taken out, an Early Repayment Charge will not apply.
Advice
You Advice First Fiancial Advisor will advise you on the suitability or otherwise of a Payment Reward Lifetime Mortgage for meeting your financial objectives. We strongly recommend that you seek independent financial advice from a qualified source about any possible effect that a Payment Reward Lifetime Mortgage could have on any means-tested State benefits and other related matters. You must also get independent legal advice from a solicitor. We strongly recommend that you discuss your intention to apply for a Payment Reward Lifetime Mortgage with your family.
No Negative Equity Guarantee
As long as customers are not in default, Spry Finance guarantees that neither the borrowers nor their estate will ever have to repay more that the net sales proceeds of their property even if the loan balance (loan plus accumulated interest and charges) exceeds the net sale proceeds of the house.
Set-up Fees
A €1,500 set-up fee applies to new loans. This fee covers the cost of an independent property valuation and a contribution to the costs incurred by Spry Finance in arranging your loan.
You can choose to pay the set-up fee in advance OR the fee can be included in your Payment Reward Lifetime Mortgage and deducted from the amount being borrowed.
We recommend you pay this fee upfront to avoid the fee attracting interest and increasing in value over time as indicated in Table 2.
Estimated Overall Cost of Set up -Table 2
The above table shows the estimated overall cost when a customer successfully completes a committed Payment Reward Period of 1 year at an interest rate of 5.70%.
From year 1 onwards, the Second Reward Rate of 6.70% is applied. Committing to a Payment Reward Period of greater than 1 year will result in a lower overall cost.
You will also be responsible for agreeing and paying any fees your own Solicitor will charge for providing independent legal advice to you.
* Click on Table 2 image to enlarge on small devices *
Annual Percentage Rate (APR)
The APR on an example of €100,000 Payment Reward Lifetime Mortgage for a 15-year term with a Payment Reward Period of 5 years is 6.60%. This is based on 5 years at a fixed rate of 5.70% and 10 years at a fixed rate of 6.70%. Rates correct as of Sept 2025 but may change before the loan is drawn down. Loan offer is valid for 30 days.
Loan to Value (LTV) – Table 3
For example a person aged 58 (the youngest in a couple) could borrow up to 15.8% of the value of their property if they agree to make committed interest payments for a minimum of two years. At age 79, the maximum amount that can be borrowed is 35.9% making payments for 1 year.
* Click on Table 3 image to enlarge on small devices *
Visit https://www.spryfinance.ie/our-products/payment-reward-lifetime-mortgage/payment-reward-calculator/ to see how much you could borrow subject to an affordability assessment.
Customer Costs & Fees
Set-up Fee
€1,500 applies to new loans. This fee covers the cost of an independent property valuation
(€225) and a contribution to the costs incurred by Spry Finance in arranging your loan (€1,275).
You can choose to pay the set-up fee in advance OR the fee can be included in your Payment Reward Lifetime Mortgage and deducted from the amount being borrowed.
We recommend you pay this fee upfront to avoid the fee increasing in value over time as indicated in Table 2.
Set-up Fee – Additional Lending (within 12months)
€1,000 applies to additional lending taken out within 12 months of drawing down your original loan. This fee covers the cost of a revised property valuation and a contribution towards the costs incurred by Spry Finance in arranging your loan.
We recommend that you borrow the amount you need in a single advance to avoid incurring a set-up fee at a later date.
Loan Variation Fee
€500 applicable to any variations arising during the life of the loan, e.g. adding or removing a borrower.
You will be liable for any 3rd party costs incurred by Spry Finance when any variation is required during the loan (e.g. adding or removing a borrower). The 3rd party costs will be calculated at the time of the variation and we will provide you with details of these costs at the time.
Early Repayment Charge (ERC)
Where reference interest rates are lower when you are making an early repayment than when the loan was taken out, an Early Repayment Charge (ERC) may apply. The ERC is the difference between the benchmark rate at the time of early repayment versus the benchmark rate at the time the loan is issued x number of years remaining for calculation purposes x loan balance.
Full details of the ERC are provided in the Spry Finance Guide to a Lifetime Mortgage, including details of exemptions to the ERC.
Loan Redemption Fee
€100 payable upon full repayment of the loan.
This fee contributes to the costs arising when discharging a loan e.g. legal or registration fees incurred by Spry Finance in redeeming the mortgage.
Legal Fees
In addition to fees payable to Spry Finance, you will be responsible for agreeing and paying any fees your own Solicitor will charge for providing advice to you.
Home Insurance Fees
You will be required to maintain home insurance on the secured property at all times. You will be responsible for agreeing and paying such fees to your home insurance provider. In the event that home insurance is not maintained, Spry Finance may arrange this for you and charge it to your loan account.
Commissions paid by Spry Finance
Advice First’s Commission
If your loan application is processed by Advice First Financial, a once off fixed commission of €1,700 will be paid to us when your loan is drawn down.
This fixed payments, will be paid by Spry Finance and are irrespective of the amount you borrow.
Contact us about Payment Reward Lifetime Mortgage
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The following warnings contain important information so please read them carefully
Warning: While no interest is payable during the period of the mortgage, the interest is compounded on a monthly basis and is payable in full in circumstances such as death, permanent vacation of or sale of the property.
For Fixed Rate Lifetime Mortgages
If your lifetime mortgage is being used for debt consolidation purposes:
Ready to explore your options?
Later life mortgages can help you access the value of your home while maintaining control and flexibility. If you live in Donegal and want to see what is possible, our team can guide you through your choices.
Book a confidential consultation in Letterkenny or Buncrana to compare products, understand the rates and decide what works best for you.
If you prefer to speak face-to-face, our offices in Letterkenny and Buncrana are open Monday to Friday. Drop in or book ahead to discuss your retirement goals, learn more about later life mortgage interest rates and get trusted local advice from a team that knows Donegal well.