With expenses such as legal fees, surveys, removals and, in some cases, Stamp Duty continuing to add up, many households are concluding that investing in their current property offers stronger long-term value than moving.
“The latest housing figures suggest many homeowners are pressing pause on moving, but they’re certainly not pressing pause on improving their homes,” said Matt Tristram (pictured right), co-founder at Loans Warehouse. “We’ve seen a noticeable increase in customers using secured loans to fund renovations, from kitchen refurbishments and loft conversions to larger extensions.
“Many borrowers have built up substantial equity over recent years but are reluctant to remortgage because they’re sitting on historically low fixed-rate mortgage deals. A secured loan can, in the right circumstances, allow homeowners to access some of that equity without replacing their existing mortgage.”
“Secured loans can provide an effective way for eligible homeowners to finance major home improvements while spreading the cost over a longer period.”
The rise in home improvement borrowing reflects a wider shift towards homeowners reshaping their existing properties to suit changing needs, whether that involves adding living space, improving energy efficiency or increasing the property’s value.