Rising number of over fifties use mortgage for home improvements
There is a 10 per cent increase in the number of customers using funds from mortgages for the over fifties to make home improvements, according to specialist lender Hodge.
Between July and September 2021, 22 per cent of customers who took out an over fifties mortgage with Hodge said they were using the money to improve their homes, compared with just 12 per cent in the three months previously.
The data also revealed the number of applicants using funds to give a family member a financial gift had halved in the last three months – with 10 per cent doing so in Q2 of this year, compared with five per cent in Q3.
Emma Graham, business development director, said: “It’s great to see that the over-fifties mortgage remains a popular product that clients are finding useful for all sorts of financial reasons.
“The uptake in the number of customers using over-fifties mortgages and our retirement interest-only (RIO) products to make home improvements in the past year just goes to show how homeowners are using the funds and the flexibility of these products to improve their surroundings and make them work better for them at this stage of life.”
She added: “What is good to see from this data is that customers are using our products for different reasons at different times and stages of their lives – from family gifts when times are tight, to refurbishments when they are spending more time at home.”
Last month, Hodge cut rates on its RIO and over-fifties mortgage deals.