"We’ve seen things like the stamp duty holiday driving growth in purchases, but it’s not necessarily as expected in this age group who previously may have been in their ‘forever home’ by this point."
The research shows that 26% of 50+ mortgage customers now use the funds for purchase compared with just 13% five years ago. Home improvements are also on the up remaining one of Hodge’s top three reasons for borrowing for the last three consecutive years.
In 2017, 21% of 50+ customers were taking out the loans to consolidate debt, 15% were using the funds to give family a financial gift, while only 13% were using the mortgage to buy another property.
Fast forward to 2022 and for the 50+ loans to date, 26% are now using the mortgage to buy another property closely followed by home improvements at 14%, 9% are using the money raised to give family a financial gift and only 7% are using the funds for debt consolidation.
Emma Graham, business development director at Hodge, said: “This change in use for the 50+ mortgage is an interesting one. We’ve seen things like the stamp duty holiday driving growth in purchases, but it’s not necessarily as expected in this age group who previously may have been in their ‘forever home’ by this point. It shows that the pandemic has driven many to re-evaluate their home, from where it’s based to what it offers in terms of renovation.
The fact that there has been such a swing in the past five years shows that todays over 50s mortgage customer is changing. We’ve also found that the average age of a Hodge 50+ customer has dropped from 73 to 65. Having a range of mortgage options available is really hitting home with brokers and older borrowers alike.”
