Historic attitude of paying off your mortgage as quickly as possible waning – Private Finance comments on UK Finance Mortgage Lending Trends
Private Finance comments on UK Finance Mortgage Lending Trends
Shaun Church, Director at Private Finance comments:
“Homeowners are increasingly turning to their properties to unlock additional funds, with an 8% increase in the number of borrowers withdrawing equity from their homes when they remortgage in just a year.
“The historic attitude of paying off as much of your mortgage as quickly as possible is waning. With rates hovering near historic lows, homeowners are less phased by the prospect of higher loans than previous generations, and therefore taking advantage of affordable borrowing levels by releasing equity from their homes to fund other projects.
“Facing political uncertainty and a slowing property market, many homeowners are opting to stay put in the short-term. One key usage of this money is therefore likely to be funding home improvements to add more space or improve an existing property until a clearer picture of the property market’s future performance emerges.”
Kindly shared by Private Finance