Advisors report rise in customers borrowing after retirement

May 30, 2024 by Heidi

Mortgage Advisors

More than two thirds of mortgage advisors in the UK have reported rising numbers of their clients looking to take out a mortgage during retirement, according to the latest industry study.

This research was produced by Hodge and it saw advisors reporting a big change in the lending market. Over 150 mortgage advisors spoke to Hodge for the study and the majority stated that they had seen rising numbers of customers wanting to get a mortgage after they had retired. Moreover, the reasons why greater numbers are looking to do that are also different now.

In the past, people looking to borrow in later life were doing this so that they could finance things like the purchase of a new car or a holiday abroad. Advisors are stating that the rising rates of later life borrowing now are being fuelled by the need to meet soaring living costs or supplement pensions.

This has led 90% of these advisors to tell the Hodge report that they feel later life customers need to be provided with more information about what options they have. A further 70% said that they themselves could do with more training on how to help customers who want to borrow later in life.

Andrea Roberts from Hodge pointed out that many people were now finding borrowing in their retirement years to be an unavoidable necessity due to rising costs.

More advisors may find themselves following up their CeMAP courses by choosing to complete a CeRER course too, if the number of clients in this situation keeps rising.