People 'use homeowner loans for home improvements'
Published On 22 May 2007
Nearly eight million people in the UK plan to carry out further improvements on their home and many plan to use credit - such as homeowner loans - to finance the work.A report from consumer website moneysupermarket found that 45 per cent of people believe that home improvements would add to value of their home.
Equally, the data showed that 42 per cent of people have already carried out some home improvements and would like to do more in the future. A further 1.7 million people say that they will continue to improve their property in their spare time.
Two in five people thought that they would need credit, in the form of homeowner loans or credit card spending, to finance their work.
"It seems a large number of people are getting into debt to develop. No doubt, the thinking behind this is there will be a return on investment," explained Louise Cuming, head of mortgages at the website.
"Still, it is a worrying statistic that so many people are using a form of credit to finance work, especially with interest rates having risen one per cent since August.
"It may make sense to make small purchases on a credit card, but when it comes to larger renovations, people need to consider their monthly budget when deciding whether to take out a loan or to remortgage," she added.
