Older homeowners drive record demand for lifetime mortgages
Lifetime mortgage lending reached a record high in the first half of 2026 as increasing numbers of older homeowners tapped into the value of their homes to help fund retirement, according to new figures from Spry Finance. The lender reported a 15% year-on-year increase in the number of lifetime mortgages issued during the first six months of the year, while the total value of lending rose 13%. It marks the strongest first-half performance since Spry Finance entered the Irish market in 2021. Despite the increase in lending, the average loan size remained broadly unchanged at approximately €110,000, indicating that growth was driven by more homeowners taking out lifetime mortgages rather than customers borrowing larger sums.
Spry Finance, Ireland's only provider of lifetime mortgages, offers equity release products to homeowners aged 60 and over, allowing them to access some of the value tied up in their property without selling or moving home. Unlike conventional mortgages, there are no mandatory monthly repayments, although the company said 15% of customers now choose to make voluntary repayments to reduce their outstanding balance, representing a 50% increase compared with a year earlier. Chief executive John Moriarty said the figures reflected a growing willingness among older homeowners to use housing wealth as part of their retirement planning. "More older homeowners are looking at the equity built up in their homes as a way to help fund retirement.
"What's interesting about these figures is that growth isn't coming from people borrowing more - it's coming from more people taking out lifetime mortgages." He added that the company remained focused on responsible lending as demand continues to increase. "These products can play an important role in later-life financial planning, but they are not the right solution for everyone. "That is why we invest significant time in helping customers understand their options and make informed decisions." Supplementing pension income remained one of the largest reasons customers released equity from their homes. Lending for retirement income rose 29% year-on-year to almost €7.8m during the period.
Borrowing for home improvements also increased significantly, climbing 40% to almost €4.9m, while refinancing activity rose 18% to nearly €5m. However, the value of funds released to provide a living inheritance to family members fell by 21%. The data also highlighted changing borrowing patterns among male customers. The number of single male borrowers increased by 22% compared with the first half of 2025, while the total value of lending to this group more than doubled.
Their share of borrowing for home improvements increased from 11% to 31%, while the proportion using funds to provide a living inheritance rose from 7% to 36%. People aged between 65 and 84 continued to account for the vast majority of customers, representing 82% of all lifetime mortgages issued during the first half of the year. Regionally, Dublin remained the largest market, with the value of lending in the capital increasing 27% year-on-year to €7.4m. Growth was also recorded elsewhere, with the number of lifetime mortgages rising by 35% in Cork and 46% in Wicklow.
Moriarty said demand was becoming increasingly widespread across the country. "Dublin remains our largest market, but growth isn't confined to the capital - we're seeing more homeowners in other parts of the country choosing lifetime mortgages."