Nationwide Building Society has confirmed it has doubled its maximum personal loan to help "meet customers' needs" amid the ongoing cost of living crisis.
The financial institution has raised the threshold from £25,000 to £50,000 due to the recent increase in construction costs at time when households are looking to make home improvements.
This increased amount will be available toNationwide current account holders who can apply for the loan online, in branch or on the phone. Customers will be able to receive the money the same day.
In comparison to other lenders, the building society does not apply an early settlement charge if the customer wants to repay the loan early.
Research conducted by Nationwide found that over four in ten households are preparing to start home improvements over the upcoming Bank Holiday weekend.
Projections from BCIS (Building Cost Information Service) suggest there has been a 15 per cent rise in construction costs over the next five years.
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The building society's survey of 2,000 people found that nearly one in ten people rely on a personal loan for home improvements, with costs for a typical house extension ranging from £45,000 to £75,000.
Based on Nationwide customer data, out of those borrowing £20,000 to £25,000, over one in three choose to do so in order to make home improvements to their property.
Darren Bailey, the 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."
It should be noted that anyone exploring the idea of taking a loan out should seek financial advice and examine whether this will be the correct move for them.
Alastair Douglas, the CEO of TotallyMoney, highlighted how the rise in the cost of living has impacted Britons' ability to spend money on essential home renovations.
Douglas explained: "With the summer approaching, so is peak home improvement season. However, the cost of living crisis has driven up prices for everything from bread and water to bricks and mortar, meaning more people may be looking to borrow more money to cover the costs of their renovations.
"The increased maximum loan value from Nationwide may well prove attractive to homeowners, as materials and labour costs are expected to continue to rise over the next five years.
"And with fast payout, and no early settlement charges, customers will be able to access the money quickly, while feeling like they’re not locked in for the long term."
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The finance expert urged Nationwide customers to "shop around" to ensure they are getting the best possible loan deal for their situation.
He added: "When taking out any type of financial product, whether it’s a credit card, loan, or even making a purchase with buy now pay later, ask yourself if you definitely need it and if you can definitely afford it.
"Shop around, and always do your calculations to make sure you’ll be able to keep up and check your eligibility to avoid being rejected.
"That way you can protect your credit file, and your long-term financial future."
