More than two-thirds of brokers have found that lending up to and into retirement is changing, with greater numbers borrowing into retirement to help with debt consolidation and day-to-day living costs, data from Hodge has revealed.
Hodge surveyed more than 150 brokers, the majority of whom agreed that the number of clients looking to take out a mortgage into their retirement years has continued to rise.
Most respondents also said that fewer people borrowing into later life today were doing so for aspirational reasons, such as to pay for a holiday or a car, with many instead looking to subsidise insufficient pension provisions or help with daily living costs.
70% of brokers wanted more in the way of education when looking to support their customers lending into retirement.
90% said customers required a greater level of insight with regards to the solutions available to them too.
Andrea Roberts (pictured), national account manager at Hodge, said: “What’s crucial to note about this feedback is that borrowing into retirement is becoming far less about the ‘nice to haves’ and much more focused on meeting financial liabilities brought about by pension or endowment shortfalls, outstanding debts, rises in the cost of living, and more.
“Put simply, borrowing into a customer’s retirement is becoming more of a necessity for many.
“It’s really important to us, therefore, as specialists in this area of the market, that we continue talking and listening to our brokers, so that we in turn can continue supporting intermediaries and their customers in the moments that matter.
“Our focus here at Hodge has always been to flex and respond to market pressures in a way that best reflects the challenges borrowers are facing, and talking directly to the brokers that we work with is one of the many ways we continue striving to achieve this.”
