But others cash in on cheap finance to create their dream homes
SOME homeowners have decided now is not a good time to move. Instead, they are staying put and taking advantage of cheap finance to remortgage and do home improvements.
That is what Victoria and Byron Dale have done. They have decided it is time to build a ‘forever home’ rather than move up the housing ladder.
Two years ago, they bought an end of terrace three-bedroom home in Salford, Greater Manchester. They took out a two-year fixed rate home loan with Nationwide Building Society priced at 2.79 per cent.
They have now just remortgaged, taking out a five-year fixed rate loan with HSBC at 1.94 per cent. In doing so, they have borrowed more so that they can keep renovating the house. Victoria, a 32year-old officer for a local housing association, says: ‘We were not tempted to move. This is going to be our home for a long time.’
The extra borrowing will allow the Dales to have a secure wall and fence built around their property as well as a patio built and an astro turf play area installed for two-year-old daughter Ayda.
Victoria adds: ‘By the time we are done, the home will be renovated from top to bottom. It’s our Brexit fortress.’
David Hollingworth, of mortgage adviser London & Country, says it makes sense for nonmovers such as the Dales to ‘take control’ of their home loan. Most borrowers, he adds, are looking at longer term security in the shape of five or ten-year fixed rates.