Mortgage sales to the over-60s hit £13.2 billion in mortgages in the last year (year-end 30 September 2023) as older borrowers use mortgages to minimise their heirs’ inheritance tax, Bowmore Financial Planning has found.

Borrowers who want to minimise the amount of IHT owed on their estates can take out a mortgage against the value of their property to gift cash to their children. Providing the money is given at least seven years before death, no IHT will be incurred on this gift.