Age 50+ mortgage use changing

The use of mortgages for borrowers aged fifty plus is changing. Recent data7 has shown that the proportion of mortgage borrowers aged fifty and over, using mortgages from Hodge Bank to buy a home has doubled since 2017. Just over a quarter (26% ) of its 50+ borrowers currently use mortgage funds to purchase a home, double the percentage (13%) doing so five years ago.

In 2017, over a fi fth (21%) of Hodge mortgage borrowers aged 50+ used the funds to consolidate debt, versus just 7% in 2022. Home improvements are popular with 50+ mortgage borrowers, with 14% motivated to take out a loan for this reason, while 9% are using the loan to make gifts to family members, compared with 15% in 2017. Interestingly the age of borrowers using 50+ mortgages has reduced since 2017; currently the average age is 65, versus 73 five years ago. One feasible reason could be the fact that people have re-evaluated their property needs, with the pandemic giving them a clearer view of their priorities, as older borrowers look to achieve their goals sooner.

7 Hodge, 2022