The number of people using the funds from their 50+ mortgage for debt consolidation has doubled in the year to date compared with 2022, Hodge data has found.
Hodge data analysts delved into its completion data and found that in 2022 7% of 50+ mortgage customers said they had used their funds for debt consolidation. That figure increased to 14% from January to July in 2023.
In contrast, the number of customers using the funds for home improvements has dropped. In 2022, 14% said they had used the money to do up their home, compared with just 9% to July 2023.
The other reasons for taking out a 50+ mortgage product remained pretty static from 2022 to July 2023, with many using the funds to offer a financial family gift, a home lease extension or to purchase another property.
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+ mortgage gives them the ability to move forward with a clean slate as they gain control of their finances.”
Emma added: “As the uses for the mortgage fluctuate every year, I believe what this data shows is that our 50+ 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.”