"Borrowing into retirement is becoming far less about the ‘nice to haves’ and much more focused on meeting financial liabilities "
- Andrea Roberts, national account manager (north) at Hodge
Over two thirds of brokers say lending up to and into retirement in the UK is changing, with greater numbers borrowing into their retirement to ease a combination of debt consolidation and day-to-day living costs.
In its latest study, Hodge heard from more than 150 brokers it works with. The vast majority agreed that the number of clients looking to take out a mortgage into their retirement years continues to rise.
Most respondents also said fewer people borrowing into later life today are doing so for aspirational reasons, such as to pay for a holiday or a car, with many looking to subsidise insufficient pension provisions or to help out with daily living costs instead.
As a result, 70% of brokers agree that they need more in the way of education when looking to support their customers lending into retirement. 90% of intermediaries also feel their customers require a greater level of insight with regards to the solutions available to them.
Andrea Roberts, national account manager (north) at Hodge, said: “What’s crucial to note about this feedback is that borrowing into retirement is becoming far less about the ‘nice to haves’ and much more focused on meeting financial liabilities brought about by pension or endowment shortfalls, outstanding debts, rises in the cost of living, and more.
“Put simply, borrowing into a customer’s retirement is becoming more of a necessity for many.
“It’s really important to us, therefore, as specialists in this area of the market, that we continue talking and listening to our brokers, so that we in turn can continue supporting intermediaries and their customers in the moments that matter.
“Our focus here at Hodge has always been to flex and respond to market pressures in a way that best reflects the challenges borrowers are facing, and talking directly to the brokers that we work with is one of the many ways we continue striving to achieve this.”
