Will you improve or move? - Loans - News - Moneyfacts


Will you improve or move?

Will you improve or move?

Category: Loans

Updated: 25/04/2016
First Published: 25/04/2016

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

It's the time of year when many people start to think about their homes – what they like about it, what they don't like about it, and whether it's time to up sticks, with some choosing a more extreme option than a bit of a spring spruce-up. So, will you improve or move in 2016?

Clydesdale and Yorkshire Banks have taken a look at this very question, and have discovered that more want to focus on home improvements: the figures show that 14% of respondents feel that the time is right to move, while 20% want to work on improving their current home, largely unchanged from last year's survey when the figures stood at 14% and 21% respectively.

Much of this could be due to the relative costs involved of each option, with many preferring to invest in their current home than sell up and move on. Indeed, the average loan size for home improvements in 2015 stood at £7,979, which although may sound like a lot, could easily be comparable to (or even less than) the costs involved in moving – once you've factored in legal fees, mortgage fees, removal fees and the potential costs in bringing your new property up to scratch, it could all add up.

A home improvement loan could be put to good use, too, with borrowers using that cash boost for anything from new kitchens and bathrooms to completely changing the layout of their home according to their own specifications. As an added bonus, these kinds of modifications can add value to your property, which could mean you're able to secure a higher sale price should the time come when you do decide to move.

"This time of year is traditionally synonymous with spring cleaning and DIY, and many homeowners also find it is a popular time of year to make decisions about whether to move or improve," said Steve Fletcher of Clydesdale and Yorkshire Banks. Are you one of them?

Whether you're planning to move or improve, you'll probably need some extra cash reserves behind you, and that's where a personal loan can come in handy. Happily, you can find loan rates that are among the lowest ever recorded, and if you're looking for mid-tier borrowing – which the £7,979 home improvement average squarely falls into – you can benefit from the best possible rates. Or what about remortgaging? This, too, could free up extra cash, particularly if you've built up equity and are able to benefit from a lower loan-to-value.

Of course, you'll need to make sure that your credit score is up to scratch if you're going to achieve the best deals (check out Experian CreditExpert for insight into your rating), but if everything's in order, use our search tools to see if you can find the right option, no matter what your home upgrade entails.

What next?

Use our loan calculator to find the ideal personal loan for you

Compare the top remortgage deals

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

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