October 5, 2022

Greater than 1 / 4 of fifty+ mortgage debtors purchase new property

The analysis exhibits that 26% of fifty+ mortgage clients now use the funds for buy in contrast with simply 13% 5 years in the past.

Residence enhancements are additionally on the up remaining one among Hodge’s high three causes for borrowing for the final three consecutive years.

In 2017, 21% of fifty+ clients had been taking out the loans to consolidate debt, 15% had been utilizing the funds to present household a monetary reward, whereas solely 13% had been utilizing the mortgage to purchase one other property.

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Quick ahead to 2022 and for the 50+ loans to this point, 26% at the moment are utilizing the mortgage to purchase one other property intently adopted by house enhancements at 14%, 9% are utilizing the cash raised to present household a monetary reward and solely 7% are utilizing the funds for debt consolidation.

Emma Graham, enterprise growth director at Hodge, stated, “This alteration in use for the 50+ mortgage is an fascinating one. We’ve seen issues just like the stamp responsibility vacation driving development in purchases, nevertheless it’s not essentially as anticipated on this age group who beforehand could have been of their ‘eternally house’ by this level.

“It exhibits that the pandemic has pushed many to re-evaluate their house, from the place it’s primarily based to what it presents when it comes to renovation.

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The truth that there was such a swing prior to now 5 years exhibits that todays over 50s mortgage buyer is altering. We’ve additionally discovered that the common age of a Hodge 50+ buyer has dropped from 73 to 65.

“Having a spread of mortgage choices obtainable is admittedly hitting house with brokers and older debtors alike.”