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Third of furloughed workers turn to remortgaging

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  • 28/09/2021
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Third of furloughed workers turn to remortgaging
Around one in three employees who have been placed on furlough have remortgaged, or at least considered doing so, in order to give their finances a boost.

 

That is according to new research from Canada Life looking at how currently furloughed workers have supported their finances throughout the pandemic.

Its study found that 34 per cent have considered their remortgaging options in order to keep their finances afloat, though this was a particularly popular move for younger workers with 49 per cent of those aged under 35 adopting this route. By contrast just five per cent of those aged over 55 considered remortgaging.

Taking a break from mortgage repayments was also common among homeowners, with over a third having taken or considered taking a mortgage holiday.

However, making use of the equity held in a property is far from the most common measure employed by furloughed workers. Credit cards were the first choice for almost half, followed by 42 per cent who borrowed money from friends or family and the 41 per cent who took out a loan.

Alice Watson, head of marketing insurance at Canada Life, noted that while the furlough scheme had provided much-needed support to millions, those with fragile finances had had to look to other sources to boost their bank balance.

She continued: “As we navigate through the pandemic, it is likely many people will feel additional financial strain as the furlough scheme draws to close this month.

“Property wealth is playing an increasingly important role in financial plans. Anyone considering accessing their property wealth should speak to a financial adviser, whether that be remortgaging or equity release.”

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