Home Property Finance & InvestmentMortgagesMore than a quarter of 50+ mortgage borrowers buy new property

More than a quarter of 50+ mortgage borrowers buy new property

by LLP Finance Reporter
23rd Aug 22 5:01 pm

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 Hodgeโ€™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.

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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, โ€œThis change in use for the 50+ mortgage is an interesting one. Weโ€™ve seen things like the stamp duty holiday driving growth in purchases, but itโ€™s not necessarily as expected in this age group who previously may have been in their โ€˜forever homeโ€™ by this point.

“It shows that the pandemic has driven many to re-evaluate their home, from where itโ€™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. Weโ€™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.โ€

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