You are here: Home - Uncategorized -

Homeowners turn to second mortgages to boost finances as inflation soars

0
Written by: Sarah Davidson
17/08/2022
July saw a 60% surge in the amount borrowed on a second mortgage, with a 38% rise in homeowners using the money to consolidate debts as inflation passed 10%.

Figures compiled by secured loans broker Loans Warehouse suggest second charge lending came to £161.4m in July, up nearly 60% compared to last year.

The broker said it was the highest monthly total recorded in 15 years and marked a 13% rise in borrowing on second mortgages from the previous month.

The number of borrowers using second mortgages to pay for home improvements fell, accounting for 14% of lending, while those reporting they needed the money to consolidate more expensive debts rose to 38% of lending in July.

Figures released by the Finance & Leasing Association earlier this month revealed households are increasingly relying on debt, with both the credit card and personal loan sectors together reporting an annual rise in consumer borrowing of 19% in June.

Bank of England data from the same month showed consumers borrowed an additional £1.8bn in consumer credit, of which £1bn was new lending on credit cards.

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Seven ways to get help with energy bills this winter

We knew today’s announcement was going to be painful, but it’s still a shock to the system. When this kick...

Flight cancelled or delayed? Your rights explained

With no sign of the problems in UK aviation easing over the peak summer period, many will worry whether holida...

Rail strikes: Your travel and refund rights

Thousands of railway workers will strike across three days this week, grinding much of the transport system to...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

DIY investors: 10 common mistakes to avoid

For those without the help and experience of an adviser, here are 10 common DIY investor mistakes to avoid.

Mortgage down-valuations: Tips to avoid pulling out of a house sale

Down-valuations are on the rise. So, what does it mean for home buyers, and what can you do?

Five tips for surviving a bear market mauling

The S&P 500 has slipped into bear market territory and for UK investors, the FTSE 250 is also on the edge. Her...

Money Tips of the Week