Homeowners urged to “shop around” for loans

Nearly one in two UK homeowners plan to carry out home improvement work over the coming year in order to boost the value of their property, new research reveals.

As is often the case though, it’s a matter of speculating to accumulate, meaning the average amount being set aside for renovation work is a sizeable £5,478 per homeowner.

According to the Capital One Homeowner Loans study, many homeowners are likely to take out a loan in order to fund this work as they believe they can bump up the price of their home by as much as £10,000.

“With stamp duty and the uncertainty over rising interest rates, it’s understandable that so many people are looking to improve their existing home instead of moving,” said Justin Basini of Capital One Homeowner Loans.

“Much of this expenditure will be financed through credit, so it’s important that people shop around for competitive rates.”