More homeowners taking out second mortgage to fund renovations
The number of mortgage applications to renovate a home, or to make a home more sustainable, has been quickly increasing. Mortgage advisor De Hypotheker noted in a first-quarter report that the number of applications increased by 90 percent in a year. The equity of a home is often used to pay off the mortgage.
Half of the homeowners think they have at least 100,000 euros of equity, according to a survey of at least one thousand participants. More than a quarter want to use the surplus value for sustainable renovations or other improvements. The surplus value is the result of the sharp rise in prices on the housing market, but a large part of the respondents also indicated that they were not completely satisfied with their home.
It is particularly interesting for this group to use their surplus value for a renovation, according to De Hypotheker. With a mortgage of 300,000 euros, but a home value of 450,000 euros, there is sufficient room to use part of the surplus value, explains Menno Luiten, commercial director of De Hypotheker.
With the current high energy prices, it is "extra interesting" to make the home more sustainable, he said.
Reporting by ANP