Tuesday, 21 June 2022
Department of Finance
Lifetime loans are regarded as a niche product, provided by regulated entities, usually to those aged 60 years and over. As a product offered by regulated financial service providers, the competent authority in Ireland is the Central Bank of Ireland. The Central Bank has informed me that it does not publish figures on lifetime loans.
However, if a regulated entity wishes to engage in the provision of lifetime mortgages or home reversion schemes then, in addition to the requirements of the consumer protection framework that apply to the provision of mortgages generally, the Central Bank via Consumer Protection Code 2012 has imposed a number of specific requirements relating to lifetime mortgages and home reversion agreements.
In particular it requires that, prior to providing a lifetime mortgage or a home reversion agreement to a personal consumer, a regulated entity must ensure that the personal consumer is made aware of the importance of seeking independent legal advice regarding the proposed transaction.