Most borrowers are unaware of the benefits of bridging loans, yet over-50s are using them more and more. From investing for their retirement to adapting their current home, specialist lender Together has taken a look at the reasons over-50s are turning to short-term finance to secure their future.
What’s it all about?
Many mainstream lenders’ approach to older borrowers is somewhat paradoxical. It seems like every week there’s a new report in the media about how wealth is increasingly concentrated among Britain’s older generations, that they have better pensions than today’s twentysomethings can ever hope for, and so on.
Yet – despite this accumulated wealth, longer working lives, and a potentially comfortable retirement – they are frequently overlooked by the mainstream lenders. Time and again, those over 50 are turned down for a loan by many high street lenders, particularly if they’re already claiming their pension.
With options reduced, specialist lender Together says it has witnessed an increasing openness among this generation to alternative finance providers. They claim it’s because, unlike some other lenders, they understand ‘the new normal’ that these borrowers are living in; a Britain in which they could, for instance, need to raise cash to help financially-squeezed children onto the property ladder.