September 2020
Featured in this insight: Financial services
A third of homeowners who have remortgaged have used extra cash for home improvements: A survey of homeowners has found that a third of those who have remortgaged their homes in the last two years have used the extra cash to fund home improvements and increase their property value.
The Natwest survey was carried out in May this year and polled 562 UK respondents who have remortgaged in the last 24 months.
It found that 62% would remortgage again in order to improve their home in light of the coronavirus pandemic. This was even greater among 18–30 year olds, with 79% saying they would consider funding home improvements from remortgage money to increase the value of their home. At the other end of the scale, just 44% of people aged 61+ would take out additional money on a remortgage for home improvements.
When asked about the main reasons they remortgage, 43% said it is to reduce monthly payments, while almost a fifth (19%) said it was to fund home improvements, with bathrooms being the most popular, followed by bedrooms and gardens. Remortgaging for 16% of respondents is a way to 'help ease financial anxiety'.
When asked about how they see the coming years due to Covid-19, 47% said they are putting moving plans on hold because of the virus until they can make a 'clear financial decision'. Almost two fifths (38%) said they are no longer considering selling their home as they don't think it will be 'worth it financially'. Just over a third (36%) said they think they will be spending more time in their home because of the pandemic.
When asked about the financial impact remortgaging has had on them, 37% said it has not had a big financial impact, but has allowed flexibility, while 35% said that it has given them more financial freedom to spend the extra cash. Almost a fifth (17%) said it has led them to being financially conscious and controlling their spending, while one in ten (10%) said it has had no impact at all.
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