Banks won’t lend to old people, say 7 in 10 Irish over-60's

Banks won’t lend to old people, say 7 in 10 Irish over-60’s

Our latest research has found that seven in 10 over-60s believe it is difficult for someone their age to get a loan from their bank – a number which has risen 25% in the space of just two years from 56% in 2022.

The number of people aged over 65 in Ireland is forecast to reach one million by 2031, which suggests that a significant proportion of the Irish population already feel poorly served by traditional financial institutions.

The research also points to a potential financial crisis amongst older generations, considering that only two in 10 homeowners aged over 60 consider their financial situation very comfortable, while 80% are either ‘quite comfortable’ or are making ‘some’ or ‘significant’ cutbacks to make ends meet.

These new statistics are consistent with what we discovered earlier in the year, which was that only 21% of people (all ages) believe their pension will be enough to sustain their current lifestyle, while 61% don’t. 80% of the general public agree that accessing loans and mortgages is a challenge for ‘old’ people.

One of our customers – currently arranging a Spry Lifetime Mortgage – was surprised and concerned when his bank told him he was too old for a loan to meet the cost of his home improvements.

He said: “I’m due to retire soon, I’m in good health and can afford the repayments on a loan of the sum that I require for a renovation project to my home. It seems, however, that my bank can see no further than my age.”

While this story – and our research findings – paint a concerning picture, Lifetime Mortgages and Lifetime Loans present options for homeowning over-60s that don’t involve the banks but do provide real choice.

Spry’s products give our customers the opportunity to release some equity in their homes, while retaining ownership and continuing to live in the property.

Our recently launched Lifetime Loan products extend this concept to other property types such as second homes and Buy-to -Let properties.

Releasing equity through a Lifetime Mortgage or Lifetime Loan enables older people to make choices in later life – whether that is supplementing their pension, improving the efficiency of their homes, travelling, or helping family on to the property ladder though a ‘living inheritance’.