Over-50s using mortgage funds for debt consolidation doubles in 2023
The number of people using the funds from their 50 plus mortgage for debt consolidation has doubled compared to the same period last year, a lender has found.
Mortgage lender Hodge has found that in 2022, 7% of its 50 plus mortgage customers used their funds for debt consolidation. This has risen to 14% from January to July 2023.
Customers using funds for home improvements has fallen, going from 14% in 2022 to 9% in July 2023. Using funds as a financial gift, home lease extension or to buy another property stayed relatively static compared to last year.
Emma Graham, business development director for mortgages at Hodge, said: “It’s good to delve into this data every few months as it gives us an opportunity to understand changing customer behaviours and enables us to see how they are faring financially.
“The fact that more are using it for debt consolidation isn’t necessarily surprising in light of the current economic headwinds. The 50 plus mortgage gives them the ability to move forward with a clean slate as they gain control of their finances.
Graham added: “As the uses for the mortgage fluctuate every year, I believe what this data shows is that our 50 plus product is flexing to help our later life customers achieve what they want and need at this time of their lives.
“Whether that be an extension to their home or sorting out their finances, it’s great for those of us who work hard to develop and design these products to see them working in the moments that matter.”