Expectant parents say they spend an average of £3,336 preparing for the arrival of a new baby, according to research(1) from Sainsbury’s Bank Loans. Items on their shopping lists range from 3D/4D baby scans to decorating their homes and purchasing items such as push chairs, car seats, and even changing the family car.
Sainsbury’s Bank research indicates that the biggest outgoing is £811, on average, to change the family car to accommodate a new arrival. Next on the list is £371 to improve their home and on top of this, expectant parents say they could spend an average of £305 decorating and furnishing a nursery. Other big essential purchases include £277 for a pushchair and £215 for a car seat(1).
Respondents said they would use a mix of budgeting and borrowing to prepare for the baby’s arrival. The majority said they’d use their salaries (69%) and savings (62%) and over one fifth (22%) would borrow from family members. Despite there being potentially high interest rates or fees attached, 14% said they would use their overdraft. Those taking out a personal loan accounted for 5%(1).
Simon Ranson, Head of Banking at Sainsbury’s Bank said: “New baby purchases can add up very quickly, so it’s no surprise that expectant parents are looking at various ways to fund their purchases. Taking out a personal loan could be a good way to buy everything that’s needed and ensure the agreed monthly repayments fit within the family’s budget.”
Average costs for expectant parents(1)
Type of cost
Average cost for expectant parents
Changing the family car
£811
Improving your home
£371
Other preparation
£350
Purchasing baby toys and clothes
£333
Decorating and furnishing of a nursery in your home
£305
Purchasing a pushchair
£277
Purchasing a car seat
£215
Purchasing a high chair
£210
Overall medical care
£168
Scans (and 3D/4D video if applicable)
£162
Antenatal classes
£134
TOTAL
£3,336
Sainsbury’s Bank offers competitive rates on personal loans between £1,000 and £35,000. The Bank also has a Price Promise Guarantee. This means that if a customer is offered a “like for like” loan that has a lower APR with another lender, Sainsbury’s Bank will beat it by 0.1%. This is subject to qualifying for the Offer and customers must not have already accepted its Personal Loan offer by signing and returning a Sainsbury’s Loan agreement(2). Car dealership loans and finance are excluded.
For further information on Sainsbury’s Bank visit www.sainsburysbank.co.uk/loans or pick up a leaflet in-store at Sainsbury’s.
Ends
This press release is information for journalists only and is not intended to be a promotion to be acted upon by consumers.
For further information, please contact:
Tom Wilson, Citigate Dewe Rogerson, 020 7282 2842
Lorna Gilmour, Sainsbury’s Bank, 0131 338 2863
Notes to Editors
(1) Opinium Research surveyed 2,004 UK adults on 6-10th March 2015. Results have been weighted to nationally representative criteria. Responses are taken from the 383 respondents who have either had a child in the past five years or are planning/expecting one in the next 12 months.
(2) Multiple credit searches may make obtaining future credit more difficult. Price Promise Guarantee Terms and Conditions: The Price Promise Guarantee (“the Offer”) is only available to individuals who successfully apply for (and subsequently open) a Sainsbury’s Personal Loan (“the Loan”). The offer does not apply to any Sainsbury’s Reward Loans. Claims under the Offer must be received within 28 days after the Sainsbury’s Loan has been approved. Claims under the Offer will not be accepted after the Sainsbury’s Loan offer has been accepted by signing and returning the Sainsbury’s Loan agreement. Customers must provide us with a written offer from the other lender in the same name as the Loan offered by Sainsbury’s. In most cases a photocopy of the loan agreement will suffice but we may ask customers to provide the original agreement. If customers provide an original document, we will return this to the customer within 5 days of assessing the customer’s claim. Photocopies will not be returned and will be securely destroyed by us. Sainsbury’s will verify the validity of the customer’s claim within 5 business days of receiving the customer’s request and notify the customer of the result. A “Lower rate” means a lower Annual Percentage Rate (APR) of an alternative unsecured, fixed rate loan from a lender, compared on a “like for like” basis. We will assess “like for like” based on features such as, but not limited to, length of loan, fixed loan amount, repayment structure (including interest and set up fees (if any). The Lower rate must be available to the general public and be verifiable by Sainsbury’s. The Lower rate must have been offered and must still be available to the customer at the time of the claim. The Offer does not apply to the following rate or loan types:
- Loans where the funds are not available for immediate use
- Discount rates offered only to members of groups or individuals who meet previously specified criteria;
- Rates that are not immediately available, promotions that are not at everyday rates and products which are sold under different terms and conditions, such as special financing (i.e. dealer loans, promotional loans for specific goods);
- Loans that are secured on land, investments or goods.
- Any personal products being charged interest at a variable rate;
- Any personal and non personal loan type products including but not limited to lease, contract hire, hire purchase or conditional sale agreements;
- Loan agreements where interest has been temporarily or permanently suspended (including deferred payments and 0% loans for an initial period);
- Loan agreements where the funds are to support periods of study, or the period immediately following completion of studies (for example, student loans or graduate loans).
If the claim is successful we will reduce the APR on the Sainsbury’s Loan to below that of the alternative lender by 0.1%. e.g. If the alternative lender formally offers the customer a rate of 6.9% APR, the claim is successful and 6.9% APR is lower than our rate offered we will reduce our offer rate to 6.8% APR. We reserve the right to modify or cancel the Offer at any time without prior notice.
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Sainsbury’s was the first major British supermarket to open a bank, commencing trading in February 1997. Benefiting from a fantastic, trusted brand that enables us to combine the shopping experience with personal finance, Sainsbury’s Bank provides a range of quality products including insurances, credit cards, savings and loans. Our proposition is to make shopping more rewarding by offering customers great products at fair prices, while consistently rewarding shoppers for their loyalty and being easy to do business with at all times. Our products consistently top best buy tables and regularly win awards for quality, price and service.
Sainsbury’s Bank plc. Registered Office, 33 Holborn, London EC1N 2HT (registered in England and Wales, no 3279730) is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority (register no. 184514). Sainsbury’s Bank plc is covered by the Financial Services Compensation Scheme (FSCS).