An estimated 81% of second charge brokers have seen an increase in demand for finance for home refurbishment projects over the past six months, according to Shawbrook Bank.
Two-fifths (41%) used financing to fund a redecoration project, including fitting a new kitchen or bathroom, and another 41% used finance to fund an extension or loft conversion.
When asked about their outlook on the future, brokers who specialise in the second charge mortgage market were nearly three times more confident on the outlook for the lending environment for the rest of the year, compared to the end of 2020.
The majority (87%) of seconds brokers were confident in the lending environment when thinking ahead to the remainder of this year, compared with just 30% when surveyed at the end of 2020.
Similarly, 75% said they were confident in the opportunity for business growth when thinking ahead to the remainder of this year – a significant rise from 19% in December 2020.
Gavin Seaholme, head of sales at Shawbrook Bank Limited, said: “The past 18 months have required many of us to spend longer at home than we ever would have before.
“With working, socialising and exercising all taking place within the same four walls it’s no surprise that people are looking to expand or make changes to their homes.
“While for many savings have gone up in lockdown, taking on a big renovation can quickly add up.
“If your client is planning to undertake a refurbishment or extension, large or small, it’s important to discuss all of their finance options with them.
“A number of landlords and property investors continue to rely on personal loans or credit cards to finance their DIY projects, which can be a riskier and more expensive approach to take.
“Understanding your client’s aims for the project as well as their current financial position will all help to inform the pathway they choose.”