One in seven loan applications relates to ‘property issues’ – including building extensions and conservatories, says a short term loans firm.
UK personal asset lender, borro, has reported a staggering 661 per cent increase on loan applications made, easier.com reports; claiming that 70 per cent of them pertain to some sort of property development or redecoration.
The trend could be due to the turbulent housing market which could be dissuading people from moving house, therefore many are making home improvements to add value and make their home a nicer place in which to live until moving is an option.
A conservatory has often been considered an valuable asset to any home, adding much-needed extra space or a touch of class. Typically an area for relaxation or socialising, it can also promote well-being; particularly when finished in soothing colours, furnished with comfortable furniture and featuring good quality conservatory blinds for insulation purposes.
borro’s analysis found that in addition to funding structural additions to the home, other people are applying for loans to cover the costs associated with owning a second or rental property – usually before it is sold or while it remains unoccupied.
borro founder and chief executive officer, Paul Aitken, expects this trend to rise by 40 per cent over the next year; with more people “finding that the slow property market is working against them,” he told mortgageintroducer.com.