Mojo: Homeowners borrowing more money for improvements than ever
Homeowners across the UK are now borrowing more money from mortgage lenders than ever before to fund home improvements, according to Mojo Mortgages.
The average amount of money being applied for by existing homeowners to fund home improvements 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.
The data also found that remortgage applications for home improvements are up 174% for the year so far, when compared to this time in 2019.
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.”
Adrienne Minster, chief executive of Rated People, added: “This boom has been fantastic for ambitious tradespeople wanting to take on more work and grow their businesses, but it’s also been one of the factors contributing to a materials shortage.
“Materials such as cement and timber are costing tradespeople more to buy and, as a result, quotes can be higher than normal for work.
“Trade businesses are working hard to secure supplies, but consumers can continue to benefit from planning improvements ahead of time and being flexible with dates where possible.”