Mojo: Homeowners Are Borrowing More Money Than Ever For Improvements
Homeowners across the UK are now borrowing more money from mortgage lenders than ever before to finance home renovations, according to Mojo Mortgages.
The average amount requested by existing homeowners to finance home improvements has risen to just over £ 13,000 (up 25%) during the pandemic – from an average of £ 52,209 in 2019 to 65 £ 267 in August 2021.
The data also revealed that remortgage applications for home improvements have increased 174% for the year so far, compared to this period in 2019.
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Cassie Stephenson, Director of Mortgages at Mojo Mortgages, said: “After such an uncertain 18 months, you would have thought that the purse strings would have tightened for both homeowners and lenders, but in many cases this was just the opposite.
“With people spending more time in their homes than ever before, homeowners have had time to imagine the property of their dreams and the steps needed to make it a reality as the company opens up and returns to normalcy.
“Add to that record rates for remortgages – as low as 0.83% in some cases – and you can see why homeowners are looking to strike when costs are low.
“Of course, it’s important to factor in all of the costs involved and not just focus on pricing when trying to get the best deal. “
Adrienne Minster, Managing Director of Rated People, added: “This boom has been fantastic for ambitious artisans who want to take on more work and grow their business, but it has also been one of the factors contributing to a shortage of materials.
“Materials such as cement and wood cost artisans more, and therefore quotes may be higher than normal for the job.
“Businesses are working hard to secure supplies, but consumers can continue to benefit from improvements in advance planning and flexibility of dates wherever possible.”