Personal loans can be a useful method of adding value to a property, an expert has claimed.
More than one in five borrowers have taken out funds in order to make changes to their residence, according to Alliance & Leicester.
However, homeowners planning to take out personal loans to carry out home improvements should be wary that they are doing the correct work, the company has warned.
The majority of estate agents polled by the lender found that extensions for extra living space, new kitchens and extra bedrooms can be effective ways of using the cash generated by personal loans.
Richard Al-Dabbagh, senior marketing manager for loans at Alliance & Leicester, commented: "A personal loan can be one of the most cost-effective ways to enable home improvements but when considering borrowing money for home improvements it is vital that your planned alterations really do count as improvements."
Personal finance advice service uSwitch recently warned UK consumers that personal loans which offer cashback features may not be the best option for those who wish to repay the money early.





Paying Too Much?