More than a third (36%) of homeowners had two credit cards and 14% had three, research from Pepper Money found.
Nearly three quarters (72%) of homeowners aged 25 to 34 held two or more credit cards.
25% of homeowners used their overdraft at least six times in the past year, and 13% dipped into their overdraft every month.
Nearly a quarter (24%) of homeowners kept their credit card account open and reused it for major purchases after paying it off.
16% owed over £10,000 on their credit cards.
For big purchases like home improvements, 28% looked to borrow between £10,000 and £25,000.
14% wanted between £25,001 and £50,000.
Nearly a third (29%) said their choice of financial products was limited when planning big purchases.
Ryan McGrath, director of second charge mortgages, said: “Homeowners are increasingly turning to short-term credit like multiple credit cards and overdrafts to fund major purchases, but while these options may offer convenience, they often come with high interest rates, fees and can lead to long-term financial strain when minimum payments aren’t met.
“Second charge mortgages can offer a smarter alternative, particularly for those looking to borrow larger sums – for major expenses such as home improvements.
“Typically, much lower interest rates compared to credit cards and the ability to spread costs over longer repayment periods, to reduced monthly costs, second charge mortgages can offer homeowners greater financial stability and a credible method to repay debts.”
McGrath added: “They also provide access to funds without disturbing an existing mortgage, an important consideration in today’s interest rate environment.
“The research also shows that nearly a third (29%) of homeowners feel limited by the financial products available to them.
“It’s vital that we raise awareness of second charge mortgages as a viable and responsible borrowing option that can help people make informed financial decisions that can improve their long-term resilience by leveraging their property wealth.”
