According to Moneyexpert.com, the independent financial comparison website, many people fund their home improvements with personal loans, and warns that the big spenders could be wasting as much as £2,500 if they pay for the work in this way.
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MoneyExpert.coms research reveals that home improvements and alterations still force many people to spend big some 1.2 million homeowners have spent at least £10,000 on their properties in the past year.
Almost 10 per cent of homeowners forked out over £5,000 to fix problems or renovate their properties, and almost a quarter spent between £500 and £3,000 employing tradesmen to do the jobs.
Sean Gardner, Chief Executive of MoneyExpert.com, said: Home improvements are one of the most popular reasons for taking out a personal loan. But when people go for major renovations and consider borrowing more than £10,000, they need to ensure they get good value for money.
With many people turning to unsecured loans to finance major changes to their homes, MoneyExpert.com is warning homeowners to pick their loan carefully.
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On a loan of £10,000 over four years, the total repayment could currently vary by as much as £2,501 or by around £52 per month.
Compare loans here
Personal loans can vary in price dramatically you could end up paying back as much as a quarter of the amount you borrowed in extra repayments unless you research the market carefully.
Of course, there are other considerations such as early redemption fees and minimum income requirements taking out a personal loan should not be a snap decision.
Londoners spent the most on home improvements this year, with an average layout of £1,804. However, Scotland and the Midlands werent far behind, spending on average £1,730 and £1,816 respectively.
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