The portion of those with multiple credit cards rises among younger generations.
Some 72% of younger homeowners aged between 25 and 34 years old have more than one credit card, a survey by Pepper Money found.
The reliance on short-term debt extends to overdraft usage, as a quarter of homeowners admitted to using theirs at least six times in the last year.
Meanwhile, more than a quarter of homeowners are looking to borrow more than £10,000-25,000 for a significant spend, such as home improvements. However, 29% feel limited by the financial products available.
Ryan McGrath, director of second charge mortgages, said that while credit cards and overdrafts offer convenience, they often come with higher interest rates and fees.
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He said: “Second charge mortgages can offer a smarter alternative, particularly for those looking to borrow larger sums – for major expenses such as home improvements.
“Typically, much lower interest rates compared to credit cards and the ability to spread costs over longer repayment periods, to reduced monthly costs, second charge mortgages can offer homeowners greater financial stability and a credible method to repay debts.”
He added: “It’s vital that we raise awareness of second charge mortgages as a viable and responsible borrowing option.”
According to the latest figures from the Finance & Leasing Association (FLA), the value of new second charge business came to £176m in August, up 16% year-on-year.
