There has been a notable increase in the number of borrowers over the age of 50 seeking longer-term remortgages, according to proprietary data from Legal & General’s Ignite platform.
The data reveals a significant rise in searches for 21-year to 25-year remortgage terms among the over-50s, climbing by 83% from Q1 2023 to Q1 2024. Additionally, there was an 88% increase in the number of over-50s looking for mortgages with a 16-year to 20-year term from Q4 2023 to Q1 2024, and an impressive 136% increase between Q1 2023 and Q1 2024.
Increasing Loan Amounts and Changing Retirement Trends
The average loan amounts for remortgagers aged between 51 and 55 also saw a significant rise, increasing by 18.9% from Q1 2023 to Q1 2024. This trend coincides with a broader pattern of people working longer and gradually transitioning into retirement.
Analysis by the Centre for Ageing Better shows that the proportion of people working past their 65th birthday has more than doubled since the turn of the century, increasing from 5.2% to 11.5% in 2023. This shift reflects changing attitudes towards retirement and the need for continued income in later life.
Consistent Demand Across Age Groups
When comparing the over-50s demographic against the entire sample of remortgaging customers, which includes those aged 18 to 70, the overall proportion of over-50s searching for remortgage options remained consistent year on year. In Q1 2023, 28% of all remortgage searches were conducted by customers aged over 50, and this figure remained the same in Q1 2024.
Market Dynamics and Professional Advice
In a challenging and dynamic interest rate environment, a significant increase in remortgaging requests among homeowners aged over 50 was perhaps inevitable. As interest rates fluctuate, homeowners are more inclined to reassess their options to secure the best possible rates.
The competitive mortgage market has prompted many to seek professional advice. The variety of available options means it is essential for homeowners to consult with advisers who can help identify the most suitable products for their individual financial situations. Traditional mortgages may not always be the best choice, especially with the advent of hybrid mortgages and later-life products designed to manage mortgage debt during retirement.
The Role of Advisers
Professional advisers play a crucial role in guiding borrowers through the remortgaging process. Their expertise, combined with access to advanced technology tools, ensures that customers are aware of the most appropriate products on the market. Advisers often have access to broker exclusive rates and deals that are not available on the high street, providing borrowers with valuable insights and peace of mind when making significant financial decisions.
The trend of over-50s seeking longer-term remortgages highlights the evolving financial needs and retirement planning strategies of an ageing population. With more people working beyond traditional retirement age, the demand for longer mortgage terms is likely to continue. Professional advice remains crucial in navigating the complexities of the remortgage market, ensuring that borrowers can make informed decisions that best suit their financial futures.
If you are considering your mortgage options, please do get in touch.
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