(1888PressRelease)
September 26, 2007 - According to Credit Action, personal debt rose by £117 billion in the 12 months leading to July 2007 and Sainsbury's Bank says that much of this money goes towards the purchase or improvement of a home.
With this in mind, concerns have been raised that a rise in interest rates could lead to people defaulting on their mortgage payments and an increase in home repossessions.
Figures also show that the amount of credit given to individuals increased by 5.3 per cent in the last year, with the average household having debts of around £8,856.
Financial Difficulty | Sell and Rent Back your home
"The purposes behind personal loans are many. Slightly more than a quarter of our customers are getting loans for home improvements, to add value to their property," said Steve Baillie from Sainsbury's Bank.
With Rightmove recently revealing that UK house prices fell by 2.6 per cent in September, some commentators would argue that trying to increase the value of a property with renovations is a futile ambition.
Many homeowners who want to make some money from their home may be better off seeking a quick property sale.
