Home Improvement Loans 'Remain Popular'

A survey conducted by AA Personal Loans has revealed that home improvement loans are still popular among people in the UK, despite the recession.

The company's figures revealed that the demand for loans which will be spent on home improvements has not fallen off, despite the ongoing economic downturn.

According to the poll, around one-quarter of properties in the UK are set to have home improvements work done on them during the downturn and 24 per cent of the homeowners planning the improvements will be adding an extra room to their house.

Mark Burgess, editor of Estate Agency Times, said: "Understandably, some people might not be keen to take out a personal loan at the moment, but additional bedrooms or reception rooms typically add the most value to a property."

Recently, a study by Sainsbury's Home Insurance revealed that many Brits are adopting a DIY approach to renovating their properties.

Nationwide personal loans 'offering typical ARP of 7.7%'

Nationwide personal loans are leading the market when it comes to the interest rates they demand, the bank has pointed out.

The financial group's rates on personal loans of £5,000, £7,500 or £10,000 currently stand at an average of 7.7 per cent - which means that they beat competitors such as supermarkets and other high street banks.

Nationwide also points out that all customers are eligible for the same rate whether they apply online, in-branch or over the telephone.

"Whatever the purpose of your loan whether it be for a new car, to pay for a wedding, carry out home improvements or consolidate other debts, our rate is hard to beat," explained Chris Rhodes, product and marketing director for Nationwide.

According to Nationwide's monthly index, consumer confidence is on the rise, having increased slightly from June to July.

It also predicted that the base rate is 95 per cent likely to remain the same when the Bank of England monetary committee next meets.