More people staying in their properties and refinancing for home improvements
The cost of moving means more homeowners are deciding to borrow money and improve their existing properties rather than move.
According to data analysed by Hamptons International - 221,800 households increased their mortgage to free up cash last year up from 146,900 in 2013.
An article in The Times highlights that the equity release mortgage market totalled £41.3 billion last year, with nearly half of all borrowers who remortgaged doing so to release cash.
Aaron Strutt, product director at Trinity Financial, says: “If you want to take out equity from your property, mortgage many lenders will allow it as part of a standard remortgage so you will get access to the super cheap rates if you have enough income and clear credit history.
“Some of the lenders may want to see the quotes for the work, but it depends on how extensive they are and if there are any structural changes. If it’s a rear or loft extension, they may want to see the builder’s quotes, but it also depends how much equity you have in your property.”
Trinity’s brokers regularly speak to clients who are staying put and extending their homes rather than taking bigger mortgages and paying the enhanced stamp duty. They often do it when their fixed or tracker rate is finishing.
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