The pandemic has prompted many homeowners to increase the footprint of their living area. Could be an extension, new loft, summer house/office etc. Then there’s the mass exodus from London, which has enabled those winners on the London house lottery to cash in their profits and buy a bigger pad in the suburbs, or the countryside.
They also want a versatile living space, plus modern energy-saving features installed into older properties. So there’s lots to insure right now in the home sector;
Homeowners across the UK are now borrowing more money from mortgage lenders than ever before to fund home improvements, according to new figures released this week. According to mortgage broker Mojo Mortgages, the average amount of money being applied for by existing homeowners to fund renovation projects has increased by just over £13,000 (up 25%) over the course of the pandemic – rising from an average of £52,209 in 2019 to £65,267 as of August 2021.
It’s not just the amount of money being borrowed per applicant that’s risen – the amount of people looking to borrow has also seen a significant uplift – with remortgage applications for home improvements up 174% for the year so far (when compared to this time in 2019).
Experts believe there are several factors behind the rise in total applications and the amount of funds being applied for with record low mortgage rates alongside the rising costs of building materials and labour, as well as more ambitious projects creating the perfect storm for remortgage applications.
Cassie Stephenson, director of mortgages at Mojo Mortgages, said:
“After such an uncertain 18 months you might have thought that purse strings would have tightened from both homeowners and lenders, however in many cases this has been the complete opposite.
“With people spending more time in their homes than ever before, homeowners have had the time to imagine their dream property and the steps required to make this a reality as society opens up and returns to normality.
“Couple this with record low rates for remortgages – as low as 0.83% in some cases – and you can see why homeowners are looking to strike while costs are low. Of course, it’s important to consider all the fees involved and not to focus solely on rates when looking to get the best deal.”
For more info, please visit: https://mojomortgages.com/remortgage/remortgaging-for-home-improvements-how-it-works