Monday 26 August 2019

Surge in applications for home-improvement loans - Bank of Ireland

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Charlie Weston

Charlie Weston

THERE has been a surge in home improvement loans in the first nine months of the year, Bank of Ireland says.

The lender has introduced new lending rates for personal loans, with lower rates for those borrowing larger amounts.

The bank said there was a 47pc surge in applications for loans to cover the cost of home improvements in the first three quarters of the year.

Average amounts sought were down slightly to €10,000, Bank of Ireland said.

Most of those applying for a loan to do up their home were over the age of 35, with the average age coming in at 41.

Mobile phones and the bank’s website are now the most popular channels for making loan applications.

The bank claims its new rate of 6.8pc for amounts over €20,000 is the lowest in the market for an unsecured loan.

For amounts between €300 and €1,999, the bank has a new rate of 8.9pc. For loans between €10,000 and €19,999, the rate is 7.5pc.

Head of loans at Bank of Ireland Christine Hamill said customers have wide ranging financial needs when it comes to personal loans.

“Following a strong first half we continue to see a steady increase in customers seeking to borrow for home improvements with the majority of applications being made online.”

The introduction of tiered rates meant customers can now make savings over the course of a loan.

The bank would endeavour to transfer the funds within two to three days of an application, Ms Hamill added.

She said customers can clear a loan early and pay less interest with no penalties or even take a break by deferring the first three months’ repayments which can be helpful during times of significant financial outgoings.

The loans are for amounts of up to €65,000.

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