(1888PressRelease)
April 24, 2007 - The increasing value of the properties in UK is escalating the popularity of secured personal loans. Brits are taking advantage of the rising prices of their properties and using the opportunity to take secured borrowings that command lower interest rates and longer repayment periods.
The data from the Bank of England shows that popularity of secured borrowing continues to soar. Secured borrowing rose to over £14.5 billion in the final quarter of last year reflecting an increase of around £2.5 billion on the revised figure for the quarter. The data shows that the figures were highest since 2004.
Secured personal loans depend on the level of equity in your home. Equity means the market value of the property after deducting any loan or mortgage already secured against it. So, the higher the value of your home, higher will be the equity.
In many instances, borrowers were taking out loans to add more value to their properties by undertaking home improvements. According to Yorkshire Bank, one-third of the homeowners would carry out DIY to further increase the value of their properties.
Gary Lumby from the Yorkshire Bank stated: "Some DIY projects, like fitting new kitchens and bathrooms or installing double glazing, can be costly.
The sensible option for many could be to spread the cost of these projects by releasing equity and adding it on to the total mortgage repayments."
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