The number of people taking out second charge mortgages to fund home improvements has surged over the past year, a survey by Shawbrook Bank has revealed.

The lender found that 81% of second charge brokers have seen an increase in demand for financing to fund home refurbishment projects.

Brokers reported that half of their clients were borrowing in order to fund a redecoration project including fitting a new kitchen or bathroom, while the other half used finance to fund an extension or loft conversion.

Shawbrook says that the trend towards remote working and people spending more time in their homes over lockdown is likely to have driven this demand for renovations.

Meanwhile, 87% of second charge brokers said they were confident in the lending environment over the remainder of this year compared to just 30% when surveyed at the end of 2020

In a further sign of optimism, 75% said they were confident in the opportunity for business growth when thinking ahead to the remainder of this year. 

This is a significant rise from just 19% who said they felt confident in December 2020.

Shawbrook head of sales Gavin Seaholme says: “The past 18 months have required many of us to spend longer at home than we ever would have before. 

“With working, socialising and exercising all taking place within the same four walls it’s no surprise that people are looking to expand or make changes to their homes. 

“While for many savings have gone up in lockdown, taking on a big renovation can quickly add up.

“If your client is planning to undertake a refurbishment or extension, large or small, it’s important to discuss all of their finance options with them. 

“A number of landlords and property investors continue to rely on personal loans or credit cards to finance their DIY projects, which can be a riskier and more expensive approach to take. 

“Understanding your client’s aims for the project as well as their current financial position will all help to inform the pathway they choose.”