WITH over €5.5billion tied up in property equity amongst Limerick’s 28,000 Senior Citizens, demand for Lifetime loans remains very strong and home improvement continues to top the list of Limerick’s seniors when it comes to utilising a Lifetime Mortgage in retirement.
Figures from the latest Seniors Money Lifetime Loan Index highlight a consistent and prudent use of funds when it comes to this post retirement financial option. The Index tracks consumer activity within the post retirement equity release sector.
Home improvements continues to top the usage list for Limerick Seniors with 43% of all customers choosing to reinvest their loan funds in their home and a further 10% purchasing items for the home.
By taking advantage of the equity tied up their property, those in retirement can ensure that their home doesn’t become dilapidated and is fitted with any necessary mobility aids that may be required. In addition, many are choosing to simply reinvest the money into their home so they can maintain comfortable living conditions.
Donal Morrissey, the local Seniors Money representative “There are over 600,000 people in Ireland over the age of 60 and for many of these people the lack of a substantial regular income has resulted in their homes remaining relatively untouched for a number of years. Some properties can even fall into a state of disrepair. Many people in retirement do not have readily accessible cash to make the necessary repairs to their house. Being able to access our facility to leverage off the value of their property has been very helpful to thousands of retirees throughout the country”.
Demand for a Seniors Money Lifetime loan remains very steady he notes. “We receive a constant stream of enquiries from prospective clients and brokers and we have not had to advertise our facility during 2009”, says Morrissey. The maximum amount that can be borrowed is 15% at age 60 rising to 45% at age 90.
“Our clients are a prudent group of people and they tend to borrow about two thirds of the amount they are actually approved for. This has not changed in the recession” explained Morrissey.
“What has changed is the way they are using their loans. Given the smaller loan sizes we have definitely noticed that people are focusing on a smaller number of uses and are less likely to put some of the loan towards travel or replacing the car. We have also seen a slight increase (from 25% to 29%) in the number of clients using some of the money to clear-off small outstanding debts, which of course creates some monthly disposable income.
“What can be surmised from the results of the Index is that our clients are using the Lifetime Mortgage for the exact purpose it was intended for – as a financial tool to supplement their current income to allow them to maintain a reasonable standard of living in retirement. We believe the findings are extremely positive as they reinforce the fact that those over 60 approach this financial decision in the prudent manner which we advise.
www.seniorsmoney.ie has more information.
