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Homeowners Invest £5.6 Billion In Home Improvements

20 May 2013

New research(1) indicates that homeowners across Britain are increasingly investing to improve their homes, rather than looking to move during the current economic climate, as new figures from Sainsbury’s Bank Loans reveal an estimated £5.6 billion of personal loans were taken out in 2012 to carry out home improvements. The amount borrowed for home improvements has increased year-on-year by 26% (up from £4.49 billion).

The Bank’s new research shows that loans for home improvements accounted for 28% of all personal loans in 2012. Indeed, some 624,235 people took personal loans to improve their homes in 2012, an increase of 22.8% year-on-year (up 115,961). This significantly outpaces the increase in mortgage lending, which rose by just 1.4% in 2012, according to figures published by the Council of Mortgage Lenders(2).

In addition to an increase in the number of borrowers, the figures(1) from Sainsbury’s Bank Loans also show that the amount people are borrowing to improve their homes has also increased. In 2011, the average amount was £8,792, while in 2012 this rose 2.6%, or £233, to £9,024.*

Steven Baillie, Head of Loans at Sainsbury’s Bank said: “Our research shows that, year-on-year, more people are looking to invest in their property and carry out home improvements. As well as the obvious improvements to standard of living, home improvements can add real value to a property. We’d encourage those planning work to shop around to ensure they see the best possible return on their investment”

“The personal loans market has become increasingly competitive, which is great news for those seeking a loan, so we’d encourage shopping around to ensure getting the best deal. We are currently offering our lowest ever rate of 5.1% APR on loans between £7,500 and £15,000.”

For customers borrowing between £7,500 and £15,000, Sainsbury’s Bank currently offers loans from a Representative APR of 5.1%(3). Customers with a Nectar card choosing repayment periods between one and three years could receive a reduced rate of 5.0% Representative APR(3).

Sainsbury’s Bank offers loans between £1,000 and £25,000. In addition to competitive rates, customers taking out a Sainsbury’s Bank loan benefit from:

For further information on Sainsbury’s Bank Loans call 0800 169 8502, log onto www.sainsburysbank.co.uk  or pick up a leaflet in-store at Sainsbury’s.

Ends

For further information, please contact:
Tom Wilson, Citigate Dewe Rogerson on 0207 282 2842
Lorna Gilmour, Sainsbury’s Bank on 0131 338 2863

Notes to editors:
(1) Based on an analysis of Sainsbury’s Bank loans approved in 2012 and 2011. Estimates for the whole market made by using this data in conjunction with the bank’s market share.
(2) 2012 mortgage data taken from: http://www.cml.org.uk/cml/media/press/3406
(3) Rate correct at date of issuing – 20th May 2013
* All figures rounded individually to the nearest pound; any discrepancies between figures are due to rounding errors

Sainsbury’s Bank:

To view our latest press releases and product information, please visit the Sainsbury’s Bank online media centre at www.sainsburysbank.co.uk/media.

Sainsbury’s was the first major British supermarket to open a bank, commencing trading in February 1997. Benefiting from a fantastic, trusted brand that enables us to combine the shopping experience with personal finance, Sainsbury’s Bank provides a range of quality products including insurances, credit cards, savings and loans. Our proposition is to make shopping more rewarding by offering customers great products at fair prices, while consistently rewarding shoppers for their loyalty and being easy to do business with at all times.  Our products consistently top Best Buy tables and regularly win awards for quality, price and service.

In Q1, 2013, the Bank has been awarded ‘Personal Loan Provider of the Year’ – Consumer Moneyfacts, ‘Best Loan Provider’ – Money Supermarket Supers and ‘Best Credit Card for Rewards’ – Moneynet.

Sainsbury’s Bank Plc is a joint venture between J Sainsbury plc and Lloyds Banking Group.

Sainsbury’s Bank has its own banking licence, is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority (register no. 184514), except for Credit Cards and Loans where it is licensed by the Office of Fair Trading (OFT) license no. 421897. The Bank has an independent membership to the Financial Services Compensation Scheme.

For further information and general Sainsbury’s Bank enquiries customers can call the freephone number on 0500 40 50 60 or visit www.sainsburysbank.co.uk

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