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Home improvements account for 9.7% of secured lending
Recent research from specialist lender Pepper Money reveals that many UK homeowners are choosing to improve their current homes rather than move to new properties.
This trend is understandable given the current market conditions: higher interest rates, steep moving costs, and limited housing supply. For many, avoiding the hassle of moving and investing in their existing home may make more sense.
The research found that search demand for the term ‘home improvement’ rose by 19% in the last quarter alone, with around 76,000 searches in April 2025.
According to Pepper Money, home improvement loans now represent 9.7% of second charge mortgage borrowing, making it the second most common reason for taking out this type of loan. The average loan value was £33,795, with Birmingham (13.4%), Sheffield (9.5%), and Cardiff (9.1%) topping the list of cities where homeowners are investing in improvements.
Why are second charge mortgages supporting this demand?
Second charge mortgages provide an attractive option for clients who need additional funds but want to avoid remortgaging or have been declined a further advance. They offer a flexible and effective alternative.
They are particularly suitable for clients who:
- Wish to keep their existing low-rate mortgage;
- Face high early repayment charges if they were to remortgage;
- Have been turned down for a further advance;
- Need to borrow amounts beyond what unsecured lending can offer.
If you have clients seeking finance solutions to support their home improvement plans, please get in touch on 0800 032 9595. We’re here to help you find the best options for their needs.
