Personal loans for home improvements rise, research shows

Mon, 04 Aug 2008

An increasing number of people are looking to take out a personal loan to pay for home improvements, rather than move house, a new study shows.

Research by Lloyds TSB Personal Loans has found that 59 per cent of people who have been looking to move have put their plans on hold due to concerns over property prices and half of these say they will look to do up their property instead.

It also found that there has been a 19 per cent year-on-year increase in personal loan applications for home improvement projects.

David Wishart, director of personal loans at Lloyds TSB, said: "In recent months we have seen a significant increase in home improvement personal loan requests.

"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."

By making home improvements people should be able to add value to their property, he added.

Last week, a study by Moneyfacts.co.uk revealed that 14 personal loan firms have increased their interest rates in the last month.
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