Most people are using their savings to fund upgrades to their properties, the lender has found.
Many Britons are using their savings to fund home improvements, new research from Halifax shows.
According to the new poll, 80 percent of people who have upgraded their home in some way over the past 12 months have either partially or fully funded it through savings. By contrast, just ten percent used their credit card - while just five percent used a personal loan.
Unsurprisingly, younger people (18 to 34-year-olds) were revealed to be the most likely group to use personal loans - with 12 percent taking out this form of credit. Correspondingly, 88 percent the over-65s used savings for the improvements, the highest single total across all age groups.
When asked why they wanted to upgrade their property, the largest single group (28 percent) said that it was to add value to their property. In a time of falling house prices - with value lost running at over ten percent over the past year, according to lender Nationwide - this trend seems set to strengthen as 2008 progresses.
Tony Wilcox, head of savings at Halifax, added: "This research contradicts the buy now pay later culture which is so often thought to be prevalent in the UK. The fact that the vast majority of people have saved in advance of spending is extremely encouraging. Using savings for such improvements means savers are really seeing the benefits of putting money aside."
Halifax has been conducting annual research into Britons' home improvement preferences since 1991.
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