Third of mortgage over 50 customers use funds for family gifts

Hodge Bank has revealed that, between 2019 and 2021, there was a 30% increase in the number of mortgage customers (aged over 50) 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. In fact, between 2020 and 2021, 27% of Hodge (aged over 50) customers stated they were using the capital for debt consolidation.

Emma Graham, Business Development Director 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

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.