UK consumers are acquiring mortgages to continue investing in home improvements, despite challenging economic conditions, according to recent research conducted by Sainsbury’s Finance.
The research showed that homeowners are investing more in home improvements, with 21.0 percent of personal loans being taken out solely for this purpose. This rose from 20.8 percent in 2010, significantly higher than the 14.1 percent of personal loans taken out for home improvements in 2007.
“Our analysis suggests that UK homeowners are continuing to spend money on home improvements and the average spend is marginally more than last year,” said Steven Baillie, Head of Loans at Sainsbury’s Finance.
“The decision to invest more in their homes could be due to a number of reasons, perhaps some are aiming to increase the value of their home, or maybe others have been unable to move up the property ladder so are improving their existing home until they can do so.”
Around 20.2 percent of the total value of personal loans in the UK last year was attributed to home improvements, up from 20.1 percent in 2010. Meanwhile, the average value of personal loans meant for home improvements has declined slightly to £8,318, from £8,827 in 2010.
“For those thinking of applying for a personal loan, whether it be for home improvements or another purpose, it’s imperative that they shop around to get the best rate as it could save them a considerable amount in repayments,” said Baillie.
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