New research reveals trend from last three years
More mortgage customers aged 50 and above are spending their loan funds giving financial gifts to family members, research from later life lending specialist Hodge Lifetime discovered.
It was revealed that between 2019 and 2021, there was a 30% increase in the number of 50+ mortgage customers who spent their funds giving financial family gifts.
The number of customers using a mortgage for debt consolidation also increased by 15% during the same period. Between 2020 and 2021, 27% of Hodge 50+ customers said they were using the capital for debt consolidation.
“When our intermediary partners and clients apply for the 50+ mortgage, we ask them what they are planning to use the funds for, so we can assess the application as flexibly as possible. This data gives us a great insight into what our customers need the mortgage for,” Emma Graham (pictured), business development director at Hodge, said.
Read more: Hodge ups max LTV to 75% across later life mortgage range.
She noted that the 50+ product is becoming popular for those who want to either get their finances in order, or help family members out.
Meanwhile, the data also found that customers looking to consolidate debts with the funds had a higher average loan size at £161,886. Those who were using the 50+ mortgage funds for home improvements had an average loan size of £154,263, and for a family gift, the average was £146,269.
