The second charge market has profited from economic uncertainty, as more people are choosing to improve their current property rather the move, Clever Lending research found.
There was an 8.4% rise in people applying for a second charge in the first half of 2018 compared to the corresponding period in 2017.
Half (51%) of those loans were taken out to make home improvements.
Sam Kirtikar (pictured), managing director of Clever Lending, said: “With an increase in re-mortgage applications, slump in the UK housing market and uncertainty around our economy, this could suggest more people are choosing to improve their current properties – rather than take a potential financial risk of moving.
“It could be that Brexit worries are flattening the property market, meaning fewer people are moving and more homeowners are making improvements to their current properties rather than move during a time when it is still unclear how Brexit will affect property prices.
“Growth in the market reinforces the fact there are plenty of opportunities in the current climate for second charges. It’s important to consider seconds as a solution for a refinancing or home improvement enquiry and that brokers are aware of the benefits second charges can offer.”