What Spry’s 2024 lending data says about equity release in Ireland

Pension support, home improvements, and more female borrowers: what Spry’s 2024 lending data says about equity release in Ireland

Supplementing pension income and spending money on home improvements were among the most popular uses of a Spry Lifetime Mortgage or Lifetime Loan last year.

Our lending data from 2024 shows that the market for Spry’s equity release products grew by 15%. This growth was driven by several factors including increases in the number of loans issued to single females, the number of customers opting for lower-rate ‘Green’ loans for energy efficient homes, and the number of loans issued in Cork and Galway.

Lending to single female customers grew 13% to represent 35% of all loans issued, as opposed to 31% in 2023. This was 2.5 times the number of single male borrowers, which decreased from 17% to 14% last year. Borrowing by couples comprised 50% of loans, down from 52% in 2023.

Later Life Lending in 2024 stats

The average amount equity released in their home by a single female customer was €83,000, which was €6,000 more than that of a single male borrower (€77,000), and €20,000 less than couples (€103,000). The median property value for a borrower was €570,000 in Dublin and €370,000 outside the capital. The average age of our customers was 72.

In 2024, 27% of borrowers used funds from their Spry Lifetime Mortgage or Loan to supplement their pension income, just ahead of 27% who established a cash fund, and 15% who released equity to funding home improvements. Other uses included mortgage switching (12%), providing a gift or living inheritance to loved ones (11%), paying off unsecured loans (6%), and funding later life care (3%).

Later Life Lending in 2024 stats

The large amount of spending on home improvements was also reflected in the 60% increase in borrowers choosing a Spry Green Lifetime Mortgage last year. Just over a third of them (36%) met the loan criteria because their home already had a BER cert of B3 or better, while the remaining 64% were eligible because they committed to spending funds on home improvements for energy efficiency purposes.

Another driver of growth was a significant rise in demand for Spry’s equity release products outside Dublin. Loans issued in Cork and Galway grew 29% and 53% respectively in 2024, with average loan values of €100,000 in Cork and €67,000 in Galway.  There was a growing trend in Galway of funds being used to provide a living inheritance, and an increase in funds being used for home improvements among Cork customers.

David Brady, Director of Spry Finance, believes that strong growth in 2024 demonstrates the increasing recognition of equity release products, such as Lifetime Loans and Lifetime Mortgages, as an important financial planning tool for later life.

Mr Brady said: “The continuing growth in demand for Spry’s equity release loans reflects growing awareness and appreciation of our later-life lending product range as a financial planning tool for those aged over 60. It’s clear that many older people in Ireland are asset-rich but cash poor and are considering how best to fund a more comfortable later life where they can expect to live longer and in better health. This is also borne out by the increasing average age of our customers.”