Many Brits are taking out loans to make improvements to their property instead of moving house, it has been claimed.
According to Sainsbury's Finance, around 425,000 personal loans worth over £4 billion were taken out to cover the cost of home improvements.
This is a 24 per cent increase in the number of loans taken out for the same purpose in 2007 and a 22 per cent increase in the total value of loans.
The company believes this is due to the current state of the housing markets as people are being put off trying to buy or sell properties.
Steven Baillie, head of loans at Sainsbury's, said: "It is well-documented that the housing market struggled last year and our figures might suggest that people have decided to stay put and make the most of their existing homes."
Fair Investment recently revealed that 21 per cent of mortgage holders have borrowed more than 90 per cent of their property's value.
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