Home improvement has been named the most popular reason for taking out a secured loan by a new survey made on behalf of Loan.co.uk.
Out of the 2,000 people polled, 786 said they had borrowed money via a secure loan, and nearly half (47 per cent) of those said they did so to renovate their homes.
More than a quarter (27 per cent) of the people who took out a secured loan used it to consolidate debts.
“Home improvement remains the most popular reason for taking out a secured loan, mainly because people recognise the lifestyle benefits it can bring, as well as the value it can add to a home.
“With increased spending confidence, I expect more people to be considering taking forward home improvement plans as we enter summer,” Paul McGerrigan, chief executive of Loan.co.uk, said.
According to him the findings reflect growing consumer confidence across the UK, as well as a period where people are looking to manage their debts in a more effective way.
“We are now in the midst of much more stable economic climate where people are more likely to take forward their spending decisions.
“Despite the recovering economic outlook, it’s clear that some people have over leveraged themselves to get through what was a very long and drawn-out recession and are starting to look at ways to consolidate their debts into a more manageable monthly payment.
“As this trend continues amongst UK consumers, financial restructuring will remain a key area of growth in the secured loans space. I would stress that it is important to restructure responsibly and ensure that customers understand the importance of obtaining only a level of debt that they can afford now and in the future,” McGerrigan added.
Loan.co.uk has recently unveiled a home improvement tool on its website, allowing users to find out the average amount they could add to the value of a house through renovation.
