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Home Improvement Loans in the UK | Infographic

Home Improvement Loans:

Choose to Improve Rather than Move

Latest data released by Post Office Money shows that homeowners collectively spent £295bn in home renovation in the last 5 years. This led to an increase of £40,000 in the overall property value.

The growth of house prices has slowed down over the past few years. And, therefore, more and more homeowners are getting inclined to the idea of improving their home to add value to their property. Doing so will significantly increase the market value of their home.

Regular upgrades and renovations allow the homeowners to craft homes that echo their necessities and personal taste.

According to the NAEA Propertymark (National Association of Estate Agents), the number of homeowners choosing to invest in their existing property instead of moving out has rocketed in the past five years.

Maximise your options: Compare and apply for loans below with LoanTube

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Norwich Trust

Loan Term

1 -

10 years

4.8/5

4.8/5

Representative APR

22.9%

Minimum Age

21 Years

Minimum Income

£2000 per month

Representative Example If you borrow £20000 over 72 months, your representative APR will be 22.90% APR. Your monthly repayments will be £488.36 and the total amount repayable will be £35,161.92.

4.8/5

4.8/5

Norwich Trust

Loan Amount

£4000 -

£20000

Loan Term

1 -

10 years

Representative APR

22.9%

Minimum Age

21 Years

Minimum Income

£2000 per month

Representative Example If you borrow £20000 over 72 months, your representative APR will be 22.90% APR. Your monthly repayments will be £488.36 and the total amount repayable will be £35,161.92.

Loan Amount

£5000 -

£100000

Evolution Money Loans

Loan Term

1 -

20 years

4.5/5

4.5/5

Representative APR

28.96%

Minimum Age

18 years

Minimum Income

Not mentioned

Representative Example: Loan Amount: £20950.00, Loan Term: 85 Months, Interest Rate: 23.00% PA Variable. Monthly Repayments: £537.44. Total Amount Repayable: £45,682.15. This example includes a Product Fee of £2,095.00 (10% of the loan amount) and a Lending Fee of £714.00

4.5/5

4.5/5

Evolution Money Loans

Loan Amount

£5000 -

£100000

Loan Term

1 -

20 years

Representative APR

28.96%

Minimum Age

18 years

Minimum Income

Not mentioned

Representative Example: Loan Amount: £20950.00, Loan Term: 85 Months, Interest Rate: 23.00% PA Variable. Monthly Repayments: £537.44. Total Amount Repayable: £45,682.15. This example includes a Product Fee of £2,095.00 (10% of the loan amount) and a Lending Fee of £714.00

Loan Amount

£1000 -

£10000

1Plus1 Guarantor Loans

Loan Term

1 -

5 years

4.4/5

4.4/5

Representative APR

47.80%

Minimum Age

18 years

Minimum Income

Not mentioned

Representative example: If you borrow £3000 over 36 months at a Representative rate of 47.8% APR and an annual interest rate of 39.7%, you would pay 12 monthly installments of £143.84. The total charge for credit will be £2178.24 and the total amount payable will be £5178.24.

4.4/5

4.4/5

1Plus1 Guarantor Loans

Loan Amount

£1000 -

£10000

Loan Term

1 -

5 years

Representative APR

47.80%

Minimum Age

18 years

Minimum Income

Not mentioned

Representative example: If you borrow £3000 over 36 months at a Representative rate of 47.8% APR and an annual interest rate of 39.7%, you would pay 12 monthly installments of £143.84. The total charge for credit will be £2178.24 and the total amount payable will be £5178.24.

Home Improvement Loans: Homeowner’s Go-to Option
Home Improvement
Home Improvement
This is one of the most popular forms of unsecured personal loans in the UK. Home improvement loan is a short-term loan, which can be borrowed for making improvements in a residential property. The amount can be used in renovations such as alterations, maintenance, repair and beautification of the property, which will lead to increase the property value.

Housing Statistics for January 2019

  • Housing
    The average price of a property in the UK was £228,14.
  • Housing
    The annual price change for a property in the UK was 1.7%.
  • Housing
    The monthly price change for a property in the UK was -0.8%.
  • Housing
    The monthly index figure (January 2015=100) for the UK was 119.7.

Dwellings by Tenure-2017

Dwellings
In the year 2017, there was an estimated dwelling of 23.9 million in England including vacant and occupied homes. Out of these, 15.1 million i.e., 63% were occupied by their owners, 4.8 million i.e., 20% were rented privately, 1.6 million i.e., 7% were used by local authorities, and 2.5 million i.e., 10% were housing association homes.
Consider the data given below in pictorial representation for easy understanding:
ALL DWELLINGS 23.9MILLION
  • Owner Occupied
  • Local Authority
  • Housing Association
  • Private Rented
Home Improvement circle Graph

House Prices and Brexit

House Prices
Following the referendum in June 2016, the prices of house in the UK did remain the same for a while. However, with Brexit looming over, house prices dropped from a peak of £232,797 in August to £230,630 in November, in 2018.
A slight recovery was observed in December 2018, but they fell down again in January 2019 with the latest ONS House Price Index reporting the average UK house price as £228,147.
ANNUAL HOUSE PRICE GROWTH, 2013-2018
Annual Graph
Home Improvement: The New Trend in the UK Market
Rather than upgrading home by moving to a new place, many homeowners in the UK are choosing to improve their current place of residence. Research conducted by Post Office Money found that homes with such improvements were on the market for more than 10% higher than the average asking price.
Key Findings of the Research
  • percent Graph Upgrades and improvements increased the value of the property by £40,000.
  • percent Graph Average value of property changed from £210,000 to £250,000.
  • percent Graph Only 5% of homeowners who did upgrades had the intention of moving.
  • percent Graph 28% thought that improvements would increase the overall property value.
  • percent Graph 59% had a reason of improving their home’s appearance.
Sometimes, it becomes difficult to manage additional expenses and that is how a home improvement loan can be helpful. It’s easy, convenient, and accessible. Unsecured home improvement loans do not require any collateral to be used in the process. Therefore, give the love your home deserves!

Cost of Moving House in 2018

The latest research done by Compare My Move has found that the average UK homeowner spent more than £10k when moving their home. And first-time buyers spend £1,761 on extra moving costs adding 4 months of saving.

How to Maintain
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Credit Score While Borrowing?

There are several benefits of maintaining a good credit score such as having the benefit of being offered a lower interest rate on the loans that one opts for. A good credit score helps an individual to save money on a wide range of services. LoanTube has listed a few tips to help maintain the credit score to be fit and in shape:

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Keep paying bills on time. Any bill, if unpaid, could wind up on your credit report.

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Refrain from applying for new credit as multiple credit checks also impact the ratings.

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Know your credit report inside out. A single error can lead to a drop in the score.

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Manage your debt efficiently and responsibly. Lower the debt, higher is the credit score.

 

Warning: Late repayment can cause you serious money problems. For more information, go to MONEYADVICESERVICE.ORG.UK

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LoanTube is a credit broker and not a lender. Think carefully before securing debts against your home. Your home may be repossessed if you do not keep up repayments on any debt secured against it.

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