Homeowners remortgaging due to financial pressures of COVID-19
Almost one in 10 UK homeowners say they have remortgaged to relieve financial anxieties caused by the COVID-19 pandemic, according to a recent survey by Natwest.
Natwest commissioned a survey to look into the remortgaging habits and attitudes of homeowners in the UK to gain a snapshot of how the pandemic has financially impacted homeowners.
The survey also found that two fifths of homeowners were planning to sell their home before the pandemic, but now 38% of these prospective sellers are no longer considering selling their property indefinitely. Almost half (47%) of homeowners are now postponing the sale of their property until they can make a clear financial decision, and in light of the pandemic 62% of homeowners would consider remortgaging a second time to fund home improvements.
The survey found that reasons for deciding to remortgage ranged from reducing monthly payments (43%) to funding home improvements (19%). Some homeowners are reportedly factoring COVID-19 into their decisions more than others, with 31% of 18-30 year old homeowners saying they are more likely to move house as a result of the pandemic. By comparison, just 18% of 31-45 year olds and 16% of 46-60 year olds thought the same.
In regards to seeking mortgage advice, banks and lenders came out on top (28%) closely followed by online search (25%).
Overall, 74% found that remortgaging had a positive impact on their lives, with over three quarters (77%) of 18-30 year olds listing mental health as the primary or secondary reason for their decision to remortgage. Just 23% said their decision was purely financial.
Across all ages, 43% of homeowners say remortgaging has also had a positive impact on their mental health, with 23% saying it had a significant improvement.