Savings most popular way to fund home improvements

In a challenging housing market, homeowners might be expected to improve their homes rather than move. But new research from AA Financial Services shows that many are being so careful with their money that they won't make any home improvements until they have enough savings to fund the project.
 
The research highlights that savings are by far the most popular way to pay for home improvements.
 
The AA Financial Services findings show that one in ten are planning some changes to their home. The most popular is redecoration, which 42% say they'll do. That's followed by a new kitchen (27%), garden improvements (26%) and a new bathroom (25%).
 
Using savings is by far the most popular way of funding a project (47%), with money from a bank account a distant second (16%). The third most popular choice is to use a credit card, which just 7% say they'll do.
 
Mark Huggins, director of AA Financial Services said: "Although times are tough, there are still people who want to ‘do up' their home, and of course, making some home improvements is cheaper than moving.
 
"Although the improvements people are looking to make are considerably cheaper when compared to moving, you can never start saving too soon. Hopefully when you're ready to make some bigger changes, or move, you'll have enough put away to do so.
 
"Even though consumers are willing to use their savings to pay for home improvements it's still a good idea to have some money set aside ‘just in case'."
 
Mr Huggins added: "People seem to be most keen to pay with savings, which is likely because they're being cautious. If you're careful with your finances and take the time to look around you may find that there are other options available which fit your needs."
 
The AA offers a range of financial products including credit cards and savings accounts. The Internet Extra (Issue 11) savings account is currently offering up 1.60% gross/AER variable.

For more information, visit theaa.com.