Woman, from a big city, 76 years old, owns a home worth almost 500,000 euros, looking to obtain liquidity to pay her current expenses. This is the profile of someone who hires a company in Spain reverse mortgage. A client who requests the maximum possible amount, almost 150,000 euros.
On the occasion of its 20th anniversary, Optima Mayores, a company specialized in housing monetizationwanted to draw the profile of reverse mortgage clients, based on data from more than 1,100 hires what he has done in the last four years.
“Let us remember that the reverse mortgage is a type of loan aimed at those over 65 years of age that allows them to convert their home into a source of extra liquidity in retirement,” the company says. “The reverse mortgage constitutes a new source of liquidity in a life stage characterized by excessive dependence on a public pension which is increasingly unsustainable, and scarce in many cases, offering older people an alternative to supplement their income and improve their financial situation in a safe way,” he states. Carlos González Martín, CEO of Óptima Mayores.
Sociodemographic profile
After analyzing the profile of the holders of their reverse mortgages, the main conclusions of Óptima Mayores in relation to the socio-demographic profile are:
- Almost half of the operations have two holders
- More women benefit from the reverse mortgage: 57% women, 43% men
- The average hiring age is 76 years
- The average home value is 496,000 euros
- 149,000 euros is the average amount requested
- The most common reason for hiring is obtain liquidity to pay current expenseswith 42% of cases
- In 78% of the cases, the maximum possible amount
- In it 30% of the cases there is any outstanding debt
- Madrid and Barcelona They accumulate 38% of the operations
Growth room
The company highlights the crecent interest of international actors in entering Spainsince, as indicated in the recent EY report on reverse mortgages in the world, it is the country that has the greater growth potential of this financial solution throughout Europe. Forecasts put the annual loan volume at 8,000 million Euros in ten years, placing it at levels similar to the United Kingdom, a country with a much higher degree of product maturity.
On the other hand, “in addition to its capacity as an originator, we must highlight its contribution to increasing the product offering in Spain,” Óptima Mayores highlights in its statement, since it has facilitated the entry of three companies into the market through its advisory service, which covers the areas of legal, operations, product design and distribution.
