25 May 2005
Consumers on the lookout for a new kitchen have been told to shop around for a personal loan in order to finance it, rather than immediately settling for a finance deal from a kitchen retailer.
The Alliance & Leicester has warned that many consumers waste thousands of pounds when borrowing to buy kitchens, because they are not looking at all the options available to them when borrowing.
As the average kitchen costs £6,000, it is unsurprising that more than a quarter of people getting a kitchen need to borrow in order to get one.
However, it has been revealed that more than 800,000 people are selecting retailer finance, which can charge a rate of interest twice that of loans.
According to Alliance & Leicester, taking finance from a kitchen dealer at an industry average APR of 15.2 per cent over five years, consumers would pay £2,425 in interest, potentially £1,400 more than they need to.
Ash Mukadam, Personal Loans Manager at Alliance & Leicester, said: "What is surprising is that people do not appear to put as much effort into looking for a good rate of finance as they put into the style of their cupboards or the colour of their worktops."
Consumers are advised to shop around for a personal loan for their new, dream kitchen.
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