25 July 2012
A new survey* from Nationwide Building Society reveals around half (47%) of homeowners are choosing to make home improvements within the next year, compared to just 8% of people who are planning to move.
Among those planning to make home improvements, 72% want to update or modernise their décor, while one in 10 (9%) are running out of space in their property.
The most common amount borrowed for a home improvement personal loan is around £10,000 over five years**. Most people will approach their bank for a loan, but existing customers from some of the big high street banks could be paying £1,100 more over the term of the loan compared to Nationwide customers.
Cost of £10,000 loan over five years
|Bank of Scotland
|Difference between cheapest and most expensive
|Source: Moneyfacts.co.uk – 24.07.12. Comparison of existing customer personal loans.
Nationwide charges 6.3% APR Representative to FlexAccount customers who use the account as their main current account1. The rate is applicable for loans of up to five years between £7,500 and £14,9992 and can be taken out through a branch, over the telephone or via the internet.
Those who do not have a Nationwide current account can take out a Nationwide current account in a branch and make it their main account in order to qualify for a 6.3% APR Representative rate today.
Paul Wootton, Nationwide’s head of personal loans, commented: “A static housing market means many people are unable to move home and are opting to make home improvements instead.
“Making major renovations to your home can be expensive and people could be spending much more than they need to if they fail to shop around for the best rate.
“The Nationwide personal loan is one of the most competitive on the high street and is certainly one to consider.”
Notes to editors:
*Research conducted by YouGov. Total sample size was 2068 adults of which 1,324 were homeowners. Fieldwork was undertaken between 15th - 18th June 2012. The survey was carried out online. The figures have been weighted and are representative of all UK adults (aged 18+).
** In the 12 months to 30 April 2012, the most popular combination of advance and term for a new home improvement loan was £10,000 to £11,999 over 60-71 months, source: CACI.
¹ To apply, customers must hold a current account with a Visa debit card (not cash card +) and:
- Have been paying in £750 a month for the last three months (excluding internal transfers); or
- Complete an account transfer to us (from a non-Nationwide account) using our Account Transfer Service or have done so in the last four months. For this offer the account transfer must be requested via branch or telephone and the account must be eligible for an overdraft.
2 For loans outside of this range, personalised rates apply.
Nationwide Personal Loan
- The interest rate offered will depend on the amount borrowed and the customer’s individual circumstances.
- One fixed rate for the term of the loan – repayments never change.
- No upfront charges or arrangement fees.
- No repayments for the first month.
- All loans are subject to status and are available to those aged 18 or over only.
- Applications are required for all products. Further details of terms and conditions are available on request.
Nationwide Building Society subscribes to the Lending Code.
Customers should consider all borrowing options carefully and seek independent advice.
Nationwide Building Society is authorised and regulated by the Financial Services Authority under registration number 106078. Credit facilities other than regulated mortgages are not regulated by the Financial Services Authority. You can confirm our registration on the FSA’s website, www.fsa.gov.uk or by contacting the FSA on 0845 606 1234.
About Nationwide Building Society
Nationwide is the world's largest building society as well as one of the largest
providers and a top-three provider of
mortgages in the UK. It is also a major provider of
Nationwide has around 15 million members.
Customers can manage their finances in branch, on the telephone, internet and post. The Society has around 15,000 employees. Nationwide's head office is in Swindon with administration centres based in Northampton, Bournemouth and Dunfermline. The Society also has a number of call centres across the UK.