There has been a significant increase in over-50s searching for longer-term remortgages, proprietary data from Legal & General’s Ignite platform has revealed.
Data found that searches for 21-year to 25-year terms among over-50s climbed 83% from Q1 2023 to Q1 2024.
The number of over-50s looking for mortgages with a 16-year to 20-year term increased by 88% from Q4 2023 to Q1 2024 and 136% between Q1 2023 and Q1 2024.
Average loan amounts increased among remortgagers aged between 51 and 55, rising by 18.9% from Q1 2023 to Q1 2024.
The findings coincide with a growing trend of people working longer and often transitioning into retirement gradually.
The proportion of people working past their 65th birthday has doubled since the turn of the century from 5.2% to 11.5% in 2023 according to analysis by the Centre for Ageing Better.
When compared against the entire sample, which includes remortgaging customers from age 18 to 70, the overall proportion of over-50s who searched for a remortgage option remained consistent year on year.
In Q1 2023, 28% of all remortgage searches were ordered by a customer aged over 50, the same was true for Q1 2024.
Kevin Roberts, managing director at Legal & General Mortgage Services, said: “As our data has revealed, there is a significant increase in homeowners aged over 50 looking to remortgage on a term that is likely to spill over into their retirement, although how and when people retire looks to be changing.
“In a challenging and dynamic interest rate environment, a large uptick in remortgaging requests was perhaps inevitable. If interest rates remained low, many homeowners might have stayed put and renewed with their existing lender.
“But in a newly competitive market, more people than ever are carefully considering their options to ensure they can access the best rate possible.”
He added: “It’s encouraging to see that customers are still seeking professional advice to inform their remortgaging journey.
“The market is flush with available options, so it’s really important homeowners seek advice to pinpoint the products that are best for their individual financial situation.
“After all, a traditional mortgage may not be the right choice for everyone, especially with the recent injection of hybrid mortgages and later-life products that can help customers manage mortgage debt in retirement.
“Right now, the right course for many borrowers may be a conversation with a professional adviser.
“An adviser can use their frontline experience and access to modern tech tools to ensure customers are across the most suitable products on the market.
“Moreover, advisers will often have access to rates and deals that are not available on the high street.
“Their insight is invaluable and can provide customers with much-needed peace of mind when the time to sign on the dotted line finally arrives.”
