Home Improvement Loans On The Increase
Since the start of the credit crunch over twelve months ago, the UK economy has seen a continuous and steady slow down in all areas, none more so than the housing and homeowner loan markets, as a large proportion of potential movers and buyers have either decided against, or been unable to buy a new home, due to an uncertain economic future.
However, it seems that one area of the market which is bucking the current trend is that of home improvement loans, as an increasing number of people spend money on improving their existing home rather than moving house.
The news comes from Sainsbury’s Finance, who have seen a marked increase in the number of personal loan applications for the purpose of home improvement.
According to the report from the supermarket, the total number of home improvement loans has increased by 24 per cent over the course of last year, with an increased amount of lending of 22 per cent. This equates to 425,000 new home improvement loans for a total value of around £4 billion.
Across the whole of the loan market, there were around 1.1 million home improvement loans taken out, worth £11.3 billion, showing an increase of 53 per cent on the previous year.
A spokesman for Sainsbury’s said “It is well documented that the housing market struggled last year and our figures suggest that people have decided to stay put and make the most of their existing homes.
It may also suggest however that they’re trying to add value to their current homes in order to get a better price for them when the property market recovers. If people 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.”
