Homeowners want to borrow more for home improvements this year, an analysis from Experian has found.
Shoppers visiting Experian were considering home loans with an average value of £13,524 in December, up from £10,918 in June 2017, a rise of nearly a quarter (24%). The December figure is also the highest monthly average recorded in 2018.
Amir Goshtai, managing director of Experian Marketplace and Affinity, said: “Consumers are looking to get their house in order and are assessing their options when it comes to financing their home improvements.
“The increase in the value of the loans also suggests they are happy to prioritise larger, more expensive purchases for their home. The base rate remains historically very low, making the cost of borrowing relatively cheaper, and easier for people to find a deal that’s right for them.”
Homeowners looking to borrow more than £13,000 to fund home improvements in 2019.
Meanwhile, further analysis reveals interest in fixed-term mortgages remained strong in December.
Some 83% of shoppers looking for mortgages via Experian in December were for fixed-term deals, compared to 85% in December and 83% in October. In comparison, just 10% of shoppers were interested in tracker deals.
The trend suggests that potential homeowners are looking for security when it comes to their mortgages and looking to protect themselves for any potential future interest rates rises in 2019.