Money News
4th August 2008
Surge in loans for home improvements
Increasing numbers of homeowners are taking out loans to fund home improvement projects, according to new figures from Lloyds TSB.
The firm's personal loans division has reported that the number of personal loan applications from people looking to undertake work has soared by 19 per cent.
It is thought that the trend has been fuelled by the stasis in the housing market, which has resulted in would-be sellers withdrawing their home from sale and opting instead to renovate.
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.
"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."
A poll of estate agents and homeowners conducted by the lender found that the features deemed most likely to help a property sell in the current climate is a new kitchen, followed by a new bathroom.
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