A rise is expected in secured loan applications as homeowners focus on carrying out renovation and DIY work rather than moving, one lender said today.
Pink Home Loans said people will stay in their current property because of the current market situation and would take out a secured loan to renovate their kitchens, bathrooms, bedrooms and gardens.
Associate director of marketing and IT Neil Hoare said there are two traditional rises in applications for secured loans each year – one after Christmas when consumers are looking to consolidate credit card debts and one around April.
"Intermediaries are focusing on alternative ways of generating income and secured loans have become a real asset in the intermediary market," he said.
According to research carried out by Halifax this month, nearly one in three (28 per cent) of homeowners are planning on carrying out home improvements in the next 12 months to add value to their property.
Nearly half (44 per cent) believe the work will add up to £5,000 to the value of their homes.
A new kitchen tops the list of which project homeowners think will increase the value of their property the most, followed by a new bathroom , redecorating, an extension and a conservatory.
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