Specialist lender Hodge has reported a significant increase in the number of its 50+ customers taking out mortgages for debt consolidation, according to new data.
The data shows that in January 2023, 18% of Hodge’s 50+ customers said they were using the loan for debt consolidation, compared with just 2.13% in January last year.
This represents the highest proportion of people using a 50+mortgage for this purpose in the past 12 months, with a low of 4.4% in June 2022.
Meanwhile, the number of people taking out a 50+ mortgage for home improvements has more than halved in comparison with last January, dropping from 17% to 6%.
Additionally, the number of people taking out a 50+ mortgage to give as a family gift fell to its lowest point in January 2022 at only 4.26%, but that figure more than doubled in October 2022, with 12.5% using the funds for a family gift.
Emma Graham (pictured), business development director at Hodge, said: “As you’d expect, the reasons our over 50s customers give for taking out a mortgage vary greatly. In particular, recently we’ve seen fluctuations in the number of customers taking on a mortgage for debt consolidation.
“It’s not unexpected, many for example want to consolidate their debt and make it more manageable after the festive period. That’s become even more prevalent with the ongoing cost of living crisis.”
Graham added that the 50+ mortgage product is making a difference for many reasons, allowing customers to fund a variety of improvements to their lives, whether that be a reduction in monthly outgoings, a new home or helping out loved ones, especially during these economically difficult times.
