Spry Finance targets €150m growth in Irish Lifetime Loan market by 2025

Economic and societal factors indicate demand growth
Greater acceptance of lifetime loans as financial tools
Funding available
UK consumers accessed £4.8bn of value from property in 2021

Spry Finance, currently the exclusive provider of lifetime loans to Irish over-60s, has said it expects to see the market grow by €150m in the coming two years.

Spry recently agreed a long-term funding arrangement with Canada Life Reinsurance which will re-finance its existing loan book and provide funding future lending allowing it to meet growing demand for its product.

While the success the company has enjoyed since launching in 2021 is a strong indicator of continuing growth (more than 750 customers have agreed lifetime loan products with Spry Finance in the period), it is basing its target on economic and market trends and international comparisons.

Recent research from the Competition and Consumer Protection Commission showed that 15% of respondents intended to to use an equity release product to supplement their pension, while consumers in the UK accessed £4.8bn through this type of product in 2021.

John Moriarty, Chief Executive Officer of Spry Finance, said the growth of lifetime loans in the Irish market reflects a greater acceptance of the product and an increased demand for it. He believes Ireland is following a similar trend as the UK, where the lifetime loan is an important financial planning tool which allows many older consumers to enjoy a greater life in later life.

Mr Moriarty said: “Currently, Spry Finance is the sole provider of lifetime loans in the Irish market, so our assessment of current market size – around €60m – is accurate.

“We know that there’s demand for our product, not only because of the growth that we’re seeing, but from the recent CCPC research, and also from the fact that the over-60s are incredibly poorly-served by the traditional banking sector. When the banks won’t lend, the alternatives – downsizing, or renting rooms in your home – don’t appeal to many

“Ireland has a cohort of older people who are asset-rich, but cash-poor. A lifetime loan allows them to realise some of the value of their home, while continuing to own it and to live in it.

“Our recent funding arrangement with Canada Life Reinsurance, which will allow us to realise our growth ambitions, demonstrates a belief in (and commitment to) our product and the Irish market.”