A company which allowed older people to raise money using their home as a security for the loan has had to withdraw its products because of the credit crunch.
Finance Ireland is to take its Lifetime Mortgage products off the Irish market temporarily. Problems in international money markets have raised the cost of borrowing money for financial services companies.
Finance Ireland said demand for the products was still strong and it would honour all existing loan offers. It said it hoped to start up the business again as soon as the money markets stabilised.
Chairman Billy Kane said it did not make sense for a niche player in the market to continue to fund new lending at a time when credit markets are 'all but closed'.
He said the move had no impact on existing customers and the products would be re-introduced when normal conditions resumed.
