Bank of Ireland reports surge in home improvement loan applications during first three quarters of 2017

New tiered rates announced for Bank of Ireland personal loans

Bank of Ireland has reported a 47% increase in the number of home improvement loan applications in the first three quarters of 2017 compared with the same period in 2016. With a slight decrease in the average amount sought – down from €12,000 to €10,000 – figures show that one in five applicants (22%) requested amounts greater than €20,000 with more than a quarter (26%) looking to borrow between €10,000 and €20,000. Just over half of applicants (52%) sought loans of between €5,000 and €10,000. The data was released as Bank of Ireland announced new tiered rates for personal loans.

In relation to age, more than three quarters (78%) of home improvement applications were made by those aged 35 years and over with the average age of applicants reported as 41 years old. With regard to gender, almost 3 in 5 (59%) applicants were male. Over three quarters (78%) of applicants are using the self-service channels (365 online, mobile app and website) to start their applications.

Bank of Ireland’s new tiered pricing, which is based on the loan amount, provides enhanced clarity for both customers and non-customers. Existing customers can apply online, over the phone or in branch; new clients can apply in branch or over the phone. The rates are very competitive in each loan category, and include a rate of 6.8% APR variable for loans greater than €20K. This is the best unsecured rate on the market available to both new and existing customers without the requirement of holding a Bank of Ireland account or any savings against your loan.

Christine Hamill, Head of Loans at Bank of Ireland said, “As highlighted by the home improvement applications, customers have wide ranging financial needs when it comes to personal loans. We wanted to provide further clarity in relation to the rates on offer for different loan amounts and as such, are launching new defined tiered rates for personal loans which will appeal to people seeking finance from €1,000 up to €65,000.”

“We are pleased to be offering such competitive rates in the Irish personal loans market and offer the most competitive unsecured variable rate for amounts ranging from €1,000 right up to €50,000. So whether it’s home improvements, college fees, a significant event in your life or a new car, we are enhancing the entire loan experience to give customers the information they want up front.”

Ms. Hamill continued; “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. Using our loan affordability and repayment calculators customers can get a quick estimate of how much they can potentially borrow and what their monthly outgoings will be. Our competitive rates mean customers can make big savings over the course of a loan and we endeavour to transfer the funds within 2-3 days of application.”

“Whatever life stage people are at, taking out a loan is a big financial commitment and we facilitate this with flexible repayment options. 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.”

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