Britons take out loans to repair homes

Property owners in the UK are increasingly investing to repair their house and don’t want to move to a new home during the current economic crisis

Loans for renovation of apartments and houses in the UK accounted for 28% of all personal loans in 2012, which received 624235 UK citizens that use them for repair of their houses in 2012, the Number of loans issued in 2012 for the repair of apartments increased by 22.8% yoy.

The total volume of loans today is estimated at £ 5.6 billion compared to £ 4,49 billion in 2012 and significantly ahead of growth in mortgage lending, which grew in 2012 only 1.4%. – such data are published by the Council of Mortgage Lenders.

In addition to the increased number of borrowers, the data showed that the amount of borrowings to repair and improve their homes in the UK has increased. In 2011, the average size of loans for home repairs in the UK was £8792, while in 2012 this index grew by 2.6 per cent, or £233, which is equivalent to £9024.

The study showed that from year to year more and more people try to invest their money in improving their homes to make repairs, which indicates the improvement of the standard of living, as a home improvement increases the real value of the house in the estimation.

The people who take out loans for home improvements, in the near future will see a return on their investment. Moreover, the market offers a lot of variety of options. The lending market became more competitive and if a person planned to obtain a loan, it should not stop at the first lender, and how to explore the lending market in order to get the best loan terms.

Currently, credit repair (for the improvement of living conditions) is given at a rate of 5.1% per annum on loans ranging in size from £7500 to £15000. The client has the right to choose a personal period and repayment schedule from one to seven years. On the loan is calculated fixed monthly payment and the money is transferred directly into the Bank account of the borrower.

® Helen Antre 21.05.2013.