The number of people using the funds from their 50 plus mortgage for debt consolidation has doubled compared to the same period last year, a lender has found.
Hodge has found that in 2022, seven per cent of 50 plus mortgage customers used their funds for debt consolidation.
This has risen to 14 per cent from January to July 2023.
Customers using funds for home improvements has fallen, going from 14 per cent in 2022 to nine per cent in July 2023.
Using funds as a financial gift, home lease extension or to buy another property stayed relatively static compared to last year.
Emma Graham, business development director for mortgages at Hodge, said: “It’s good to delve into this data every few months as it gives us an opportunity to understand changing customer behaviours and enables us to see how they are faring financially.
“The fact that more are using it for debt consolidation isn’t necessarily surprising in light of the current economic headwinds. The 50 plus mortgage gives them the ability to move forward with a clean slate as they gain control of their finances.
Graham added: “As the uses for the mortgage fluctuate every year, I believe what this data shows is that our 50 plus product is flexing to help our later life customers achieve what they want and need at this time of their lives.
“Whether that be an extension to their home or sorting out their finances, it’s great for those of us who work hard to develop and design these products to see them working in the moments that matter.”
Anna is currently the deputy editor for Mortgage Solutions and editor for Specialist Lending Solutions. She has worked as a journalist since 2019, having secured her Gold Standard NCTJ diploma from News Associates in a fast-track six-month course.
She started her career as a report at specialist publication The Insurance Insider covering a wide range of areas before joining Mortgage Solutions and Specialist Lending Solutions in 2021.
In her role, she helps put together and structure the news agenda for the day and writes up press releases, reports, interviews, analyses and exclusives across both titles. She also commissions blogs for Specialist Lending Solutions and hosts online masterclasses and in-person events across the business.
She has been shortlisted for three journalism awards, which include BIBA Journalist and Media Awards Scoop of Year Award in 2020, Headline Money Mortgage Journalist of the Year Award (B2B) in 2022 and 2023.
Prior to being a journalist, Anna worked in ecommerce across Snow + Rock, Cycle Surgery and Runners Need websites, and before that worked at specialist financial PR firm Rostrum.
In her spare time, Anna enjoys reading, seeing live music, and cooking for friends and family. When she gets a chance, she also enjoys hiking, skiing and indoor rock climbing.
