November most popular month to finance DIY

Figures show greatest annual spend on credit cards and personal loans

6 November 2013

November is the most popular month of the year to carry out improvements to your home, new statistics from Nationwide Building Society reveal.

Data shows that, in the past two years, use of credit cards for DIY and household purposes was greater in November than any other time of the year¹.  This is also a popular time of the year for people to take out a personal loan to fund changes to their house and home.  A fifth of all loans taken out with Nationwide in November in 2011 and 2012 were used for this purpose.

The average transaction value placed on a Nationwide credit card to carry out improvements or buy DIY products is £100. The average amount borrowed from Nationwide for a home improvement personal loan is £8,305.

John Crossley, Nationwide’s head of credit cards and personal loans, said: “We’re seeing a trend in customers using our products to help fund improvements to their home during the month of November.  Traditionally the peak was in Spring, however we’ve noticed more and more people use our credit cards and personal loans to pay for their home improvements in the run up to Christmas.”

John continues: “If you’re using a credit card to pay for something such as a new carpet or bathroom, you’re safe in the knowledge that you’re protected for anything you buy over £100, so if there's a problem or the company you’re dealing with goes bust you can get your money back.  The benefit of Nationwide’s personal loans are that they have fixed terms and fixed interest rates, meaning you can potentially carry out a whole raft of home improvements with just one affordable loan.”

Anyone opening a Nationwide Credit Card or Select Credit Card² online, in-branch or via telephone can take advantage of an interest-free balance transfer offer of 26 months with a balance transfer fee of 2.4% (minimum £5)³.  The Select Credit Card also has 0% on purchases for 12 months and the Nationwide Credit Card has the option of 0% on purchases for three months (with a balance transfer of 26 months) or six months. The Nationwide Credit Card has a 17.9% APR Representative (variable) and the Select Credit Card has a 15.9% APR Representative (variable).

Nationwide Building Society’s personal loan rate for its main current account customers is from 5.9% APR Representative for customers borrowing between £7,500 and £14,999*, for loans of up to five years. Nationwide customers can apply for the loan in-branch, online via www.nationwide.co.uk or by telephone.  Those who do not have a Nationwide current account can take out a Nationwide current account in-branch or by telephone, and make it their main account in order to qualify for a 5.9% APR Representative rate.

Notes to editors:

Case studies of someone using their credit card to pay for home improvements and someone who has taken out a personal loan to fund home improvements are available on request.

¹ Data source: All data quoted is from Nationwide Building Society.
² This offer is available to new account openings where the customer has not held a Nationwide Credit Card for at least the past year.  The rate will apply from the date the account is opened. Balance transfers at 0% must be made within three months from account opening and are subject to a fee of 2.4% (minimum £5). If you already hold a Nationwide Credit Card or have closed one in the last 12 months you will not be eligible for these offers.
New Select Credit Card customers will pay no interest on new purchases for the first 12 months, while new Nationwide Credit Card customers will pay no interest on new purchases for the first three months.
Representative example – Nationwide Credit Card:
17.9% APR Representative (variable). Based on an assumed credit limit of £1,200 and a purchase rate of 17.9% p.a. (variable).

Representative example – Select Credit Card:
15.9% APR Representative (variable).  Based on an assumed credit limit of £1,200 and a purchase rate of 15.9% p.a. (variable).
Offer may be withdrawn at any time.
³The Select Credit Card is available to any members who:
a. Hold a FlexAccount with a Visa debit card (not cash card or cash card+) and:

  • Have been paying in £750+ a month (excluding internal transfers) for the last three months; or
  • Complete an account switch to us (from a non Nationwide account) using our Account Switch Team or have done so in the last four months; or

b. Hold a FlexDirect or FlexPlus account

Nationwide credit cards are available to those aged 18+ and are subject to circumstances.

Personal loans:

Representative Example

5.9% APR Representative (fixed). Based on an assumed loan amount of £10,000 over 49months at an interest rate of 5.9% p.a. (fixed). Monthly repayment £229.45. Total amount payable £11,243.05.

*To qualify for the Nationwide personal loan rate of 5.9% APR representative you must either:
A) Hold a FlexAccount with a Visa debit card (not cash card or cash card+) and:

  • Have been paying in £750+ a month (excluding internal transfers) for the last three months; or
  • Complete an account switch to us (from a non-Nationwide account) using our Account Switch Team or have done so in the last four months. For this offer the account switch must be requested via branch or telephone and the account must be eligible for an overdraft.

OR
B) Hold a FlexDirect or FlexPlus account.
If a joint application is made only the first named account holder must meet the main current account customer eligibility criteria.
The rate offered will depend on the amount you wish to borrow and your individual circumstances.  You do not need to have a main current account with Nationwide to take out a personal loan.
For loans outside this range, personalised rates apply.
Personal loans are available to customers aged 18 – 79 and are subject to status.  Rates may vary from time to time without notice.  You should consider all borrowing options carefully and seek independent advice.
Nationwide subscribes to the Lending Code.

About Nationwide Building Society
Nationwide is the world's largest building society as well as one of the largest savings providers and a top-three provider of mortgages in the UK. It is also a major provider of current accounts, credit cards, ISAs and personal loans. 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.

Please note: If you are a customer looking for information on our products and services, please visit the main website.