24/07/2019 0 Comments
Re-mortgage To Improve Rather Than Move?
Recent figures from banking association UK Finance, have revealed more than 20,000 Brits were granted a larger mortgage in May.
Many people have been deterred from buying a bigger house lately and are choosing to increase their mortgage and make improvements on their current residence instead.
This is evidenced in figures from banking association UK Finance, which revealed more than 20,000 Brits were granted a larger mortgage in May.
This is a 19.8 per cent rise in the number of re-mortgaging requests from the same month last year, suggesting there is a trend for those already on the property ladder to stay where they are rather than trying to climb it.
“Homeowners are turning away from upsizing, taking out additional loans against their existing property to fund improvements that will make their home suitable for the years to come,” Shaun Church, director at Private Finance, toldthe Mirror.
He added that this would end up “saving thousands of pounds in stamp duty in the process”.
While it is not for certain, many of these re-mortgagers could be asking to borrow more money so they can undertake large home renovations to boost the value of their house and increase their equity when they come to sell.
Andrew Montlake from Coreco added this is a “strategic move”, saying: “They’re playing percentage property.”
Homeowners do not have to spend a fortune to improve the look of their house or flat, and something as simple as installing a new wood-burning fire could transform your property into the home of your dreams, quenching the
desire to look for somewhere new to live in the short-term.