Hodge has found a significant increase in the number of its 50-plus customers taking out a mortgage for debt consolidation in January this year compared with the same month in 2022.
In January this year, 18% of Hodge’s customers said they were using the loan for debt consolidation, compared with just 2.13% in January last year.
The first month of the year saw the highest proportion of people using a 50-plus mortgage for this purpose in the past 12 months, in contrast to a low of 4.4% in June 2022.
Taking out a 50-plus mortgage for home improvements has more than halved in comparison with last January when 17% of 50-plus Hodge mortgage customers said they were using funds for home improvements.
The number continued to drop this January to 6%.
The lender’s data also revealed that in the past year, the number of people taking out a 50-plus mortgage to give as a family gift fell to its lowest point in January 2022 at only 4.26%.
However, that figure more than doubled in October last year, with 12.5% using the funds for a family gift.
Hodge business development director Emma Graham comments: “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.”
“What is encouraging to see is that the 50+ mortgage product is making a difference for so 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, at this economically difficult time.”
