5th June ‘08 - Housing Climate to Prompt Secured Loans Surge
Financial experts are predicting that one knock-on effect of the current conditions of the UK housing market will be a surge in the number of people taking out secured loans in order to carry out home improvements.
In the light of an uncertain housing market, the DIY option is becoming increasingly attractive to homeowners, with Halifax reporting that as many as 28% have plans to renovate, extend or redecorate their homes over the next 12 months. And many choose to do so by taking the secured loan route.
Neil Hoare, associate director of marketing and IT at Pink Home Loans commented on the present financial climate, saying, “Traditionally we see two spikes on applications each year, one just after Christmas when people look at their credit cards and want to consolidate, and one starting around April.
“This year we are expecting an increase in the number of applications for home renovations. There is a fair bit of uncertainty about and I think people will want to sit tight rather than take a gamble on buying a new property.
“Intermediaries are focusing on alternative ways of generating income and secured loans have become a real asset in the intermediary market.
“In the past, high fees and early loan payment charges were quite off-putting I think to clients and brokers, but now with better regulation and better training available, I think the online sourcing has become a lot more attractive.”
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