Seniors Money acquires €90m loan book
Seniors Money Mortgages (Ireland) DAC has announced the purchase of a portfolio of equity release loans with a value of €90m. The loans consist mostly of lifetime loans, with a small number of home reversions(1).
Seniors Money intends to manage the loans through to maturity and repayment. All existing terms and conditions of the loans will continue, while the homeowners who took out the loans will also benefit from the tried and tested consumer protection policies and procedures that Seniors Money – which trades as Spry Finance – provides for all its clients.
Seniors Money (Spry Finance) is the sole Irish lender and servicer of lifetime loans. A lifetime loan allows the over-60s to release equity (value) in their home – without having to sell it or move out – by borrowing a lump sum secured on the property.
John Moriarty, Director of Seniors Money, said: “Seniors Money is delighted with the acquisition of this loan book, which provides additional scale to the company.
“We will continue to manage these loans to maturity and repayment and have been in touch with homeowners whose loans form part of this deal to reassure them that the terms and conditions of their loans will not change – they will continue to be honoured in full by Seniors Money.
“Seniors Money is committed to providing real financial choice, through lifetime loans, to individuals and couples in Ireland aged 60 and over. All of our customers enjoy the same dedicated levels of service – and this will be the case with these homeowners.”
(1) A lifetime loan allows the customer to retain ownership of their home, whereas a home reversion involves the sale of a portion or all of the home to a third party – both products are a form of equity release. In the UK, where equity release is a £5bn per annum market, home reversions represent only 1% of the market. Seniors Money does not offer home reversions.