Nationwide Building Society : doubles maximum personal loan to £50k as rising building costs impact home improvement plans

17 May 2024

• Doubling of loan size reflects impact of inflation and external pressures on rising costs impacting consumers
• Construction industry figures point to a further 15 per cent rise in costs over next 5 years, from materials to labour
• Nationwide research reveals 44% of people plan to make home improvements over the Bank Holiday weekend
• More than one in three customers taking out a Nationwide personal loan over £20,000 do so for home improvements

Nationwide has doubled its maximum personal loan from £25,000 to £50,000 due to the continued rise of construction costs at a time of year many will start to start home improvement projects.

Research¹ from Nationwide shows that more than four in ten (44%) households are planning to embark on home improvements over the coming Bank Holiday (27 May), with the construction industry at its busiest over the late Spring to summer period due to the drier and warmer weather.

The most recent forecast from BCIS (Building Cost Information Service) point to a 15 per cent uplift over the next five years², meaning many will be looking at steeper bills.

Nationwide's research highlights that half of those doing building projects (57%) have had to already shave or shelve their plans due to available finances, suggesting the rising costs will further impact plans, big or small.

The poll of 2,000 people shows that almost one in 10 (9%) rely on a personal loan for home improvements, with costs for a typical house extension ranging from £45,000 to £75,000³. Nationwide's own customer data shows that for those borrowing £20,000 to £25,000, more than one in three (35%) do so to do home improvements, with the same percentage doing so for a new car.

The new, increased loan amount will be available to Nationwide current account holders. Customers can apply for the loan online, in branch or on the phone and receive the money the same day. Also, unlike many other providers, Nationwide doesn't apply an early settlement charge if the customer wants to repay the loan early.

Darren Bailey, Head of Personal Loans at Nationwide, said: "With the impact of inflation and other external pressures, the costs of construction have seen significant increases in recent years. However, we recognise many people will want to continue with the home improvement plans, even if that means they have downscaled their plans to accommodate their budget. Our increased maximum personal loan size of £50,000 means we have an option to suit everyone. Whether you're looking to fund home improvements, a new car or consolidate existing debts, we'll be able to meet more of our customer's borrowing needs."