Personal Loans for Home Improvements
Brits borrow money to invest in home improvements, new research reveals.
According to a recent study by Sainsbury’s, Brits are spending more on their property with one in five personal loans used solely for this purpose.
This is a slight increase from 2010 in which 20.8 percent took out a loan for this reason, compared to 2011’s 21.0 percent, and significantly higher than the 14.1 percent of loans taken out for home improvements in 2007.
The average value of a personal loan taken out for home improvements in 2011 was £8,318, which was a slight decrease from £8,827 in 2010.
“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, Sainsbury’s Finance head of loans.
“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.”
In 2010, it is estimated the total value of personal loans taken out across the UK for home improvements alone was almost £3.2 billion, and this figure is predicted to be similar this year if the trend continues.
It’s not just inside the home that Brits are spending their money on either, with research by HSBC revealing we are a nation of green fingered enthusiasts.
Gardeners across the country are spending an average of £297 a year on the upkeep of their garden, totalling £7.7 billion.
Paying back a personal loan
If you have taken out a personal loan and are struggling to pay back more than the minimum each month, then a prepaid debit card could help you budget your everyday spending so you have more money left at the end of the month.