Personal Loans For Home Improvements As House Price Woes Deter Moving

Homeowners are keen to invest in home improvements even in these challenging economic times as one in five of all personal loans is being used for this purpose.

One in five personal loans was taken out solely for home improvements during the first half of the year, Sainsbury’s Finance has discovered.

The figures show almost no decline from 2009 and interestingly, between 2007 and 2009 they reveal a 47% increase in the number of people using their loans for home improvements purposes alone.

With the property market peaking in 2007, these findings may indicate that homeowners have been investing in improving their existing home rather than moving up the property ladder.

In 2007 just 14.1 per cent of personal loans were taken out for home improvements, when the focus was more on buying and selling property rather than making the existing home more suited for the needs of the family.

Commenting on these findings, 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.”