A staggering 9 million households (53% of all GB home-owning households) are planning to do DIY or home improvements in the next couple of months, according to new research published by The MarketPlace at Bradford & Bingley.

The traditional Spring-time DIY boom is clearly flourishing as much as ever, with increasing numbers of homeowners (47%) opting to improve their current property rather than moving to a new one. Many are thinking about major building works such as an extension (16%) or loft conversion (14%).

Commenting on the findings, Elliot Nathan, spokesperson for The MarketPlace, said: "Our current passion for DIY may be fuelled by more than just the 'Linda Barker factor', encouraged by the popularity of shows such as Changing Rooms. More and more homeowners may be responding to the still rising house prices, choosing to sit tight and make the necessary improvements to their current home rather than moving to a new one."

"In many parts of the country the jump in house prices can be quite considerable when another room is added. Homeowners are realising that it is more cost-effective to make changes to their own home, such as building an extension or loft conversion, than buy a larger property, especially considering the associated costs and fees on top."

"Done properly as well, home improvements can add real value to a property. We would always advise people seek out expert advice to ensure they are getting a good a deal as possible and are spending their money wisely. Shoddy work or work done on the cheap may have the opposite effect of devaluing the property."

Funding DIY

The majority of homeowners (75%) would be most likely to use existing savings or income to fund their home improvements, with 15% opting to borrow the money - with a personal loan for example - and 11% considering remortgaging.

Nathan continues: "With consumer debt rising, it is very encouraging that many are using existing savings to fund their home improvements. However, for homeowners who don't have the money lying around there are a couple of other options - remortgaging or personal loans."

"Which is best depends on a number of factors, perhaps most importantly how much the improvements are going to cost. If you're planning extensive changes, which have a good chance of adding value to your home, and need to borrow upwards of £10,000 then remortgaging may be well worth considering. If you only need to borrow a couple of thousand pounds, however, then a personal loan may be more suitable. Borrowers though, should always seek independent financial advice to ensure they choose the right option for them."

Personal loans

With the best loan rates at about 6% taking out a personal loan may be a worthwhile option for smaller sums, particularly if you've got redemption penalties on your current mortgage deal and/or you want the money quickly. The money borrowed would also be typically paid back after 2 or 3 years. To help borrowers compare the best loan deals they can log onto The MarketPlace's personal loan broker site at www.marketplace.co.uk.

Remortgaging

By remortgaging, borrowers will almost always get a better rate of interest. In addition to this, they can spread their repayments over a longer period of time, consolidate their borrowing into one place and only need to carry out administration once. With interest rates still at very low levels there are some fantastic remortgage deals available at the moment, potentially making doing up your home both an affordable proposition and a shrewd investment plan.

Remortgaging, though, may not be the solution for everyone. Borrowers need to weigh up the options carefully and we would always recommend they take independent financial advice before committing to a deal.

Example: With mortgage rates currently low, by remortgaging onto a current market-leading 2-year tracker and even extending the loan by £20k, a borrower with an existing £100k repayment loan over 25 years, paying a typical standard variable rate of 6.00%, could even reduce their repayments by around £15 a month.

Borrowers unsure about the possible benefits of remortgaging can receive an obligation free review of their current mortgage arrangements from the MarketPlace. It gives homeowners the chance to see whether they can get a better deal than the one they are currently on and to see how much they could benefit by switching.