Bank of Ireland reports surge in home improvement loan applications
A leading bank has reported a surge in people applying for home improvement loans.
Bank of Ireland said it has seen a 38pc rise in consumers seeking to borrow to do work on their properties.
However, the average loan size has not changed in the first three months of this year compared with last year, and is still €12,000.
Home owners over the age of 35 account for most of the applications, the bank said.
Most seeking to borrow to renovate their homes are between the ages of 35 and 44.
More than one in four applicants were looking to borrow between €10,000 and €20,000.
A similar proportion requested amounts greater than €20,000.
It comes after figures provided by Onlinetradesmen.ie, the source website for qualified trade professionals, said it saw a 22pc increase in home improvement projects submitted by consumers in the first three months of this year.
For the first quarter, there were approximately 17,000 home improvement projects completed by Onlinetradesmen.ie, with the largest proportion relating to repairs and maintenance.
Bank of Ireland’s home improvement loan offers variable rates from 7.5pc APR (annual equivalent amount) on borrowings from €300 to €65,000, with repayment periods from one to seven years.
Homeowners and landlords can get tax breaks for repairs, renovations or improvements under the State’s Home Renovation Incentive (HRI) scheme.
Some of the work which qualifies for HRI relief includes extensions and attic conversions, the fitting of windows, garden landscaping, plumbing, rewiring, and the repair or replacement of septic tanks.
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