A quarter use personal loans to fund home improvements

Published by Adam Williams on 12 June 2017.
Last updated on 12 June 2017

Almost a quarter of Moneywise readers have taken out a personal loan to pay for improvements to their home.

A poll of more than 12,000 users found that 24% had taken out a loan in order to improve their property in the last year.

Loans should typically be used for bigger projects, such as conservatories and other extensions. For smaller purchases and DIY tasks, such as redecorating, consumers are likely to find it cheaper using a 0% purchase credit card.

See the Moneywise guide to the best 0% interest purchase credit cards to see this week’s top deals. The longest 0% purchase card is currently 31 months. 

While home improvement was a common reason to take out a personal loan, vehicle purchase was the most popular reason for doing so. Some 37% said they took out a loan to buy a car or other vehicle in the past 12 months.

A further 30% of people said they have used personal loans to consolidate other debts.

On the whole, consumers are happy with the rates charged by personal loan providers. Of those polled, 73% described their loan rate as “very good” while a further 19% said it was “good”. Less than 2% of people said they are unhappy with the price they are paying.

These results come from a poll of Moneywise readers who took part in the voting for the Moneywise Customer Service Awards 2017, which attracted almost 50,000 entries in total. The winning providers will be revealed later this month.

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