Home improvement leads the demand for finance: Shawbrook

“With work, socializing, and sports all happening in the same four walls, it’s no surprise that people want to expand or change their homes.”

81% of second charge brokers have seen demand for finance to finance home renovation projects spike in the past six months, according to a recent survey by Shawbrook Bank.

According to brokers, the majority of clients are looking for financing options to fund a renovation project. 41% said their customers are funding the installation of a new kitchen or bathroom. The same percentage required funding to finance an extension or loft conversion. The combination of remote working and more time at home is likely to have led to this increased demand for remedial finance.

When asked about their future prospects, brokers specializing in the secondary loan market were almost three times more confident about the outlook for the credit environment for the remainder of the year than at the end of 2020 than previously asked.

Of the same group of brokers surveyed, 75% said they were more confident about the opportunity for business growth when they think about the rest of this year. This is a significant increase from just 19% who said they felt confident in December 2020.

Gavin Seaholme, Shawbrook Bank Sales Director, commented: “In the past 18 months, many of us have had to stay home longer than ever before. With work, socializing, and exercise happening in the same four walls, it’s no surprise that people want to expand or transform their home. While lockdown savings have increased for many, a major renovation can add up quickly.

“If your customer is planning a major or minor renovation or expansion, it is important to discuss all financing options with them. A number of landlords and real estate investors continue to rely on personal loans or credit cards to fund their DIY projects, which can be riskier and more expensive. If you know your client’s goals for the project and their current financial situation, you can determine the path they have chosen. “

About Nina Snider

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