More and more Brits are choosing to improve their current residence rather than move, so much so that there has been a 20 per cent increase in the number of homeowners applying for a bigger mortgage over the last year.
Banking association UK Finance has revealed 20,000 people re-mortgaged their properties to a larger value in May this year, increasing their mortgage by an average of £52,000.
This represents a 19.8 per cent increase in the number of applicants wanting to boost their mortgage compared with May 2018, the Mirror reported.
Director at Private Finance Shaun Church stated this is due to the current mentality of “improving not moving”, with many Brits wanting to make large-scale home renovations instead of buying another house.
“Homeowners are turning away from upsizing, taking out additional loans against their existing property to fund improvements that will make their home sustainable for the years to come, saving thousands of pounds in stamp duty in the process,” Mr Church stated.
Saving the cost of stamp duty can be significant, as those buying a house for £275,000 will have to pay £3,750 in this house tax alone. Of course, many home-movers are looking for bigger premises, which means they could end up spending a lot more on their stamp duty too. For a £500,000 property, for example, it works out as £15,000.
In addition to this, those buying a property would also have to spend money on removal vans, estate agent fees and solicitor bills, all of which can add up to thousands of pounds.
That is why more people are thinking about borrowing money so they can renovate their current homes instead. Doing so could also increase the value of their residence, which will help them when they sell it in the future.
Andrew Montlake from mortgage broker Coreco told the news provider: “A lot more people, given the uncertain climate, are seeking to add value to their existing homes rather than move.”
He went on to say many see “extending and renovating their existing homes as a strategic move”.
According to NAEA Propertymark, the most popular DIY project for homeowners is installing a new kitchen. It revealed 65 per cent of homeowners renovate their cooking space before putting their house on the market, Property Reporter published.
This trumps those who have installed new bathrooms (29 per cent), and the homeowners who have added extensions to their residence in order to make it bigger (22 per cent).
While fitting a new kitchen will set property owners back several thousands of pounds, there are simple redecorating jobs that can still add value to the home. These include installing new floors or even sanding wooden floors back to give them a new lease of life.
It is amazing how simply taking care of the fixtures and fittings you already have and giving them some TLC can really update a home, without having to take out hefty loans to do so.
For domestic wood flooring sanding specialists, get in touch with us today.