Sainsbury’s Bank extends larger personal loans to offer up to £40,000 (typical rate of 6.8% APR)
Sainsbury’s Bank has increased the amount which can be borrowed from £35,000 to £40,000. It is the only mainstream lender to offer this size of loan amount for any purpose, to both new and existing customers(2).
Homeowners who choose to improve their home instead of moving are among those taking advantage of the larger loans now available, according to new research from the supermarket bank.
Over one in ten UK adults(3) (12%) has carried out home improvements costing more than
£25,000 in the past two years. Of those surveyed, 14% said they had used a personal loan, 8% said they had re-mortgaged and the majority (47%) had cashed in part or all of their savings.
Analysis of Sainsbury’s Bank’s own loans book(1) reveals that since launching personal loans of up to £35,000 in October 2014, 42% of customers have cited home improvements as the major reason for the loan. Further analysis reveals that, of those taking out a personal loan between £25,000 and £35,000, the average amount a customer has borrowed is £31,643(1).
Simon Ranson, Head of Banking, Sainsbury’s Bank says: “With more people opting to stay put and extend or improve their existing home, the increase in our personal loan amount to £40,000 could offer people a useful alternative to re-mortgaging.”
Of those home improvers who chose not to re-mortgage, nearly a quarter (21%) said it was because the process of applying was too complicated or onerous, or that they had to give too much information. For 18% of people in this position, the costs outweighed the benefits with either the fee being too high or the longer repayment period posing an issue(3).
Simon Ranson added: “Customers taking out a loan of this size are often doing so with multiple purposes in mind for example to pay for a wedding, buy a caror consolidating existing debts to get a better rate.”
Loans from £25,001 to £40,000 will have a typical rate of 6.8% APR. For further information on Sainsbury’s Bank Loans visit www.sainsburysbank.co.uk/loans or pick up a leaflet instore at Sainsbury’s.
This press release is information for journalists only and is not intended to be a promotion to be acted upon by consumers. Rates and information correct as at 23rd March 2016.
Notes to Editors
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