Quantcast
Menu

News

Remortgagors look to fund home improvements

Adam Williams
Written By:
Adam Williams
Posted:
Updated:
29/07/2015

Low rates have prompted people to remortgage their property and release equity to fund home improvements.

Data from remortgage specialist LMS found the number of borrowers releasing cash grew in June. More than a third of borrowers (35%) who remortgaged did so to release equity, 4% higher than the previous month.

People withdrew an average of £34,500, 23% more than their original mortgage and the highest total ever recorded by this survey.

Two-thirds of people said they were looking to remortgage because of the low rates currently on offer in the market.

Borrowers were unlikely to stick with their current lender either, with four in every five moving to another lender. Just 3% of those borrowers who stayed with their current lender were incentivised to do so.

Andy Knee, chief executive of LMS, said: “As we reach the heights of summer, remortgage lending is gradually creeping up, and record low interest rates have compelled borrowers to go out and seek better deals other than those offered by their existing lenders.

“Whether it is to repay debts or enjoy themselves during the holidays, the fact that families need to free up cash within their property, rather than using their own savings, implies economic improvements are still to register for many people.

“In such a situation, even a minor increase in the interest base rate – as indicated to occur before 2016 by Bank of England governor Mark Carney earlier in the month – is bound to put a squeeze on pockets and borrowers need to prepare themselves.”


Share: