Thursday, September 2, 2010
Category:
Home Improvements
According to Sainsbury’s Finance, 20 percent of all personal loans were taken out to fund home improvements in the first half of the year. The supermarket bank has also revealed that there has been virtually no decline since 2007 when the figure stood at 20.7 percent. However, between 2007 and 2009, the number of people using their loans solely for home improvement purposes reportedly increased by 47 percent.
Findings have shown that between 2008 and 2009, there was a significant rise in the volume of loans taken out for home improvements – from 15.8 percent to 20.7 percent. The reason behind this is thought to be the credit crunch induced trend towards people improving their homes as opposed to moving.
With regard to the total value of personal loans taken out in the UK in the first half of 2010, home improvements were found to account for 19.5 percent. Therefore, there has not been a decline since last year when the figure was recorded at 19.4 percent. According to Sainsbury’s Finance, the average value of a personal loan taken out for home improvements has risen from £8,237 in 2009 to £9,225 in the first half of 2010 – marking a 12 percent increase.
It has been estimated that the total value of UK personal loans for the sole purpose of home improvements was over £3.2 billion in 2009, and it is thought that this year’s sum will be similar if the current trend continues.
Steven Baillie, Head of Loans at Sainsbury's said: "Some recent reports indicate that many Britons are delaying buying major items at the moment, but our figures indicate that when it comes to our homes, improving them is the exception, perhaps because despite increasing positivity in the housing market, many may still be choosing to improve rather than move.
"If people do decide that they need a loan to pay for their home improvements, they should make sure they look around for the best rates on the market, which could save them a considerable amount in repayments.
"For example, a saving of as much as up to £1,000 could be made on a loan of £10,000*, so there's potential for perhaps more home improvements, or it could come in handy elsewhere. Ultimately, you must make sure you're getting the best possible rate for your requirements and not paying over the odds, because you don't have to."
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Homeowners who would like to make home improvements, but do not have the money required, could consider taking out a secured loan. One of many finance options available, a secured loan for
home improvements could allow borrowers to embark upon an array of projects in and around their property. For example, homeowners who have been unable to move up the property ladder due to the challenging economic climate could create extra living space by means of an extension, conservatory or loft conversion. Tired décor could also be refreshed if desired, to transform an existing house into that perfect home.
