An increasing number of homeowners are taking out loans to make home improvements, according to new research. The findings by Lloyds TSB Personal Loans suggest that people are renovating their homes as an alternative to moving in the current turbulent property market. 59 per cent of people revealed that they are waiting for a more stable market before deciding to move, whilst 55 per cent of estate agents reported an increase in the number of homeowners taking their property off the market in favour of renovating their home.
Applications for home improvement loans have risen by 19 per cent according to Lloyds TSB Home Loans, whilst 55 per cent of homeowners admitted their home improvements were motivated by a need to increase the chances of a sale. Kitchens are the most commonly improved area of the house, with 79 per cent of loans used to build a new kitchen, whilst bathrooms and extensions are also popular at 59 per cent and 49 per cent respectively.
Lloyds TSB Personal Loans director, David Wishart, reportedly commented that ‘For the last decade homeowners have been able to sit back and rely on rising property prices to increase the equity in their home but sadly this is no longer possible. If you want to trade up and avoid substantially increasing your mortgage, you’ll need to add value to the house you’re currently in.
Homeowners Taking Out Loans for Home Improvements
Wed, 06 Aug 2008
Recommended links
How does a payday loan work?Payday loan charges
Who are they suitable for?
Pros and Cons
Taking Out a Payday Loan
Abbey Cut Interest Rates on Fixed Rate Loans
Home Loan Repayments Set to Rise Again
|
|
|
