Home improvement personal loans more popular, expert claims

Thu, 12 Feb 2009

The state of the housing market means people are looking to take out personal loans to improve their current property rather than move, according to one expert.

Steven Baillie, head of loans at Sainsbury's Finance, explained that a rise in the amount of unsecured borrowing could indicate that people are turning to home improvement .

The bank estimates that last year 425,000 personal loans were taken out to pay for such projects, an increase of 24 per cent on 2007's figure.

Mr Baillie urged people who are thinking of taking out a personal loan to shop around for the best deal.

"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," he said.

Last month, a study by Moneyfacts.co.uk found that the cost of some unsecured personal loans increased by 3.4 per cent in a year and a half.
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