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Homeowners require 25 per cent bigger loans for ambitious renovations conceived in lockdown – Mojo
Mojo Mortgages has revealed that big ambitions for house renovations thought up during lockdown have contributed to a 25 per cent rise in size of remortgage loan borrowers have taken out.
The broking firm said low mortgage rates, high building costs and borrowers’ big ambitions had combined with the result that borrowing requirements boomed on remortgages for renovation.
The average size of a completed remortgage loan, for a homeowners’ renovation, was £65,267 in the period January to July 2021, up by £13,000 or 25 per cent, compared to the average for January to December 2019.
The number of homeowners remortgaging for renovations had spiked this year particularly, rising by 174 per cent when comparing January to July 2021 with the same period in 2019.
Cassie Stephenson, director of mortgages at Mojo Mortgages (pictured), said: “After an uncertain 18 months, you might’ve thought purse strings would have tightened, however in many cases it’s been the opposite.
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“With people spending more time at home, they’ve had time to imagine the dream property, and the steps required to make it a reality.”
“Couple this with record low rates for remortgages, and you can see why homeowners are looking to strike while costs are low,” Stephenson added.