By James Enos, National Account Manager
The year so far has certainly kept us all on our toes. From Labour’s landslide victory to the return of Trump, and the ongoing cost of living crisis, 2024 delivered its share of expected and unexpected headlines. The world debated AI and climate change, while the internets obsessed over ‘Brat Summer’ and ‘very demure’. Even with an extra day in this leap year, it often felt there wasn’t enough time. Meanwhile, the mortgage market quietly transformed beneath the surface.
At Hodge, we’ve spent 2024 riding the wave of change, adapting to evolving borrower needs in an increasingly complex market. We’re rethinking what lending looks like in a world that often feels less predictable today than it was yesterday.
Borrowers changing behaviours
As Greek philosopher Heraclitus once said, “The only constant in life is change”. Life’s milestones show how true that is. In the 1960s, financial life was a little straightforward – a more predictable step by step path: get married, buy a house in your early 20s, raise a family, stick to a stable job, pay off your mortgage and retire. Today’s financial journey is often more complex, more varied, but also more exciting.
In 2024, we saw the average age of first time buyers rise to 35. Even more interesting, 33% of first time buyer 55 or over. Why? For some, this delayed home ownership is due to financial constraints, while for others, because buying a home has taken a backseat to pursuing career opportunities or lifestyle choices, like further education or travel.
And it isn’t just ages of first time buyers breaking the mould. People are working later, living longer and changing retirement plans – some by choice and some from necessity. Retirement is no longer gardening and daytime tele – it’s travel plans, home improvements and side hustles. The flexibility to borrow for lifestyle aspirations, not age, has never been greater.
Not forgetting the ‘Bank of family’ – reaching a record level of £9.2 billion of lending in 2024*. Parents and grandparents have been dipping into equity more than ever to support younger generations onto the property ladder. Throw increasing levels of divorce, second careers at 50 and you’ve got a mortgage market with very different borrowing demands.
How Hodge is responding to lending needs
At Hodge, we threw away the “paint by numbers” rule book long ago. Offering flexible, tailored solutions - not off the shelf mortgages - is what we do best. This year we launched Hodge Resi and Hodge Resi Retire, tow propositions designed to meet borrowers where they are, whether they are 21 or well into their retirement years, They aren’t off the shelf mortgages, they’re flexible and tailored solutions that focus on individual needs and not tick boxing within rigid criteria.
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Resi
Ideal for clients with complex income streams, our Resi mortgage supports clients from age 21 up to retirement who are looking to maximise affordability and who fall outside ‘tick box’ underwriting - find out more.
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Resi Retire
Perfect for clients looking for flexibility in later life. With no minimum age, Resi Retire caters for aspirations and lifestyle – not age. Whether your client is paying off an existing mortgage, freeing equity for home improvements or looking to lower monthly payment to improve financial comfort, Hodge can help - find out more.
We’re supporting a more flexible mortgage market
We lend with a purpose. We provide solutions for clients who are looking to free up funds for home improvements, reduce monthly outgoings or gift to family for house deposits:
- We don’t define by age: With maximum age restrictions, we’re supporting lending well into retirement, with terms extending up to 41 years and beyond.
- We enhance affordability: We assess interest-only applications on an interest-only basis and consider multiple income sources, including pensions, rental income, and self-employment.
- We offer flexible equity and debt solutions: allowing for up to 85% LTV on repayment mortgages and up to 75% LTV for debt consolidation.
- You’ll have bespoke underwriting and a case-by-case approach: we work to say “yes” more often, offering solutions to meet borrowers where they are today while planning for tomorrow.
Looking back to look forward
As we draw 2024 to a close, it’s clear the mortgage market will continue to evolve and we’re ready to embrace whatever 2025 has to offer. As further changes in borrower behaviours, income structures, and financial expectations evolve, so will we. At Hodge, we’re committed to continuing our drive for innovation, ensuring that we remain responsive to market trends and ready to support the evolving needs of today’s borrowers.
We’ll continue to focus on offering flexible, tailored solutions for those at every stage of life, whether they’re looking to get on the property ladder, remortgage in later years, or borrow into retirement. As the market changes, we’ll be there, always ready to adapt, innovate, and support both our broker partners and their clients.