Finance Ireland has sold its 40% stake in mortgage lender Nua Homeloans to Investec Ireland. Nua is involved in the sub-prime market which targets people who have difficulty securing loans from bigger financial institutions.
In a statement, Finance Ireland said the sale price was at the same level as its initial investment.
Finance Ireland chief executive Billy Kane said Nua was a 'very successful' mortgage company, but he referred to the current uncertainties in the mortgage securitisation market - where mortgage debt is sold on to other financial institutions.
'The directors believe it is not in the best interest of shareholders to provide an open ended commitment of future capital to this business,' said Mr Kane.
Finance Ireland was formerly known as Ardent and its main business is SHIP. SHIP's products allow home owners to sell a stake in their home to it in return for a lump sum. It also offers a lifetime mortgage product.
