Seniors Money Mortgages has acquired a €90m portfolio of equity release loans consisting primarily of lifetime loans -- that allow homeowners over the age of 60 to release equity in their home -- with a small number of home reversions.
The vendor of the portfolio and the amount paid by Seniors Money was undisclosed. Around 70% of the loans are located in the Dublin area.
Seniors Money, which trades as Spry Finance, intends to manage loans through maturity and repayment and said that all existing terms and conditions of the loans will be honoured.
Homeowners who took out loans will also benefit from Senior Money's consumer protections and procedures.
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.
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“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.”
Seniors has provided lifetime loans to more than 30,000 people in Ireland, Australia, Canada, New Zealand and Spain, although it has divested its business and loan books in Australia, Canada and New Zealand to local financial institutions in recent years
Spry Finance launched in 2021 as the retail arm of Seniors Money, which has provided lifetime loans to 4,500 customers in Ireland since 2006.
Seniors Money made a profit of €1.8m before tax in 2020-21, up from a €370,000 loss the previous year, and saw its net assets increase from €700,000 to €2.5m. The company issued €2.9m of mortgages during the first three months of 2021.
(Pic: Getty Images)
