London, 13 May 2021 – M&G today announces the launch of long dated fixed rate mortgages in Ireland with its origination partner Finance Ireland, Ireland’s largest non-bank lender. This will enable homeowners access to a range of long dated fixed rate mortgages of up to 20 years – a first for the Irish market.
M&G has been Finance Ireland’s long standing residential funding mortgage partner since 2018. The agreement has been made by the Specialty Finance team within M&G’s £67 billion Private & Alternative Assets division. M&G’s Specialty Finance team invests across the full spectrum of consumer loans, including mortgages, auto, credit card receivables, student and SME on behalf of institutional clients.
In Europe, the consumer lending market is dominated by the retail banks but due to regulatory changes resulting in banks managing capital and balance sheets more efficiently, asset managers have stepped up to provide long-term capital to this market on behalf of institutional investors seeking long-term income and diversification with a premium to the public markets.
Billy Kane, CEO, Finance Ireland, says: “I’ve been involved with the Irish mortgage market for over 30 years and believe that this is one of the most significant innovations made in that time. Introducing longer dated fixed rate mortgages will allow homeowners to benefit from the historically low interest rates that are currently available. Fixed terms combined with flexible features provide homeowners with exceptional certainty and are a stated priority of the Irish Government.”
Jerome Henrion, Head of Specialty Finance, M&G Investments, says: “By extending our partnership with Finance Ireland to offer these new and innovative products, Irish homeowners have the opportunity to secure fixed-rates over the long-term while retaining the flexibility that homeowners desire. In turn, our institutional clients, who are predominantly pension funds and insurance companies, will benefit from the attractive returns, regular income and security the mortgage market has historically provided.”