The largest P2P lender in the UK by monthly volume, RateSetter, has just revealed it saw a record-breaking £3,678,066 of home improvement loans last month.
RateSetter announced the record month saw an increase of 46 per cent on the previous July.
Data from the P2P lender has shown that in 2013, the value of home improvement loans increased by a colossal 189 per cent year-on-year, to £26,384,017. Now, in 2014, RateSetter has revealed it has lent 3,296 home improvement loans at a value of £23,025,037.
According to RateSetter, the cost of buying property in London has become increasingly unaffordable, resulting in the city’s residents taking out the most home improvement loans over the last year, followed by Glasgow and then Birmingham.
Results showed that the average home improvement loan is up four per cent from last year to £7,262. RateSetter’s data revealed that over one third of ‘DIYers’ are looking for flexibility and choosing to pay back their loan over two years.
Commenting on the rise of lending, Rhydian Lewis, CEO and Founder of RateSetter, said: “The driving force behind launching RateSetter was our belief that there must be an alternative to financing loans that offers customers a better deal.”
“The huge rise in home improvement lending shows that peer-to-peer is becoming the first choice for many homeowners looking for a quick cash injection, without the high fees and rates of a high street bank. This is a fantastic example of people bypassing traditional lenders for their everyday borrowing needs.”
“Our loans are fast, low cost and flexible. This weekend we will be funding more paint jobs, sink repairs and tiling than ever before as Britain goes DIY crazy!”
RateSetter client, Marketa Zvelebil, 54, from London, who borrowed £20,000 for home improvements, commented: “I chose peer-to-peer lending because I was intrigued by the concept and quite liked the idea of it. So when I needed cash for some home improvements, I decided to try it.
“I liked the simple and easy process. Most importantly, RateSetter is not a bank and so the interest I am paying goes to a lender.”
Rev. William Ruddle, 38, from Ashtead borrowed £8,000 for renovations on rental properties he owns, stating: “Being in tied accommodation, over the years I have developed a significant source of rental income from a number of properties that I own, and to keep this income coming in I wanted to update the properties and do some renovations.
“When I approached the banks for a loan to enable me to do this, they wouldn’t consider me. Peer-to-peer lending wasn’t something that I was considering until I came across the idea online, after which I thought it was worth a look.”
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