Fewer homeowners to take out loans

16th September, 2005

The number of homeowners who are to take out loans secured on their homes will fall within the decade, reveals industry analyst Datamonitor.

The new report predicts that as the housing market slows down in the next five years, it will have repercussions on the rate at which people borrow money on their property.

Most UK consumers apply for home-secured loans to make home improvements such as new kitchens or bathrooms and redecorating, or to buy double-glazing.

Of course, when renovating a property, home insurance is vital to protect the increased value of the dwelling.

When estimating the worth of a property for home insurance purposes, it is important to remember that after improvements, a home may have increased in value, and that this extra value is not underestimated.

Datamonitor financial analyst Maya Imberg said: 'As the UK's housing market slows to a soft landing, the rapid growth rates the secured lending market has enjoyed over the last five years are set to cool.'

Home insurance not only protects the property itself, but contents insurance takes care of possessions inside the house, so that in the event of a burglary or accident, the cost of replacing items should be reimbursed.

 

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