Mortgage lender Hodge has reported that, between 2019 and 2021, there was a 30% rise in the number of 50+ mortgage customers who spent their loan funds giving financial family gifts.
Customers using the mortgage for debt consolidation has also increased by 15% during the same period. Between 2020 and 2021, 27% of Hodge 50+ customers stated they were using the capital for debt consolidation.
Emma Graham, business development director at Hodge, said: “It has been a bumper few years for our 50+ product, with a 59% increase in completions from 2019 to 2021.
“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.
“And it shows that our 50+ product is proving popular for those in later life who want to either get their finances in order, or help family out – which is understandable given the last two years of uncertainty we have all been facing.”
The data also found that customers looking to consolidate debts with the funds had a higher average loan size at £161,886, while 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.
Hodge has recently increased the LTV on its two and five-year fixed 50+ repayment mortgages to 85%. The previous LTVs on all fixed products was 75%.
