Renovating your home is not only a means by which to improve your quality of life, it can also be a smart financial investment. Home improvement can vastly increase the value of your home, yet it is an expensive endeavor from the outset. In order to cover the costs of fixing up your home, you might want to consider taking out a Home Improvement Loan.
How Does a Home Improvement Loan Work?
People who are looking to make minor superficial changes to their home will usually opt for an unsecured personal loan, however, these usually come with high interest rates and are only issued if you have a good credit rating. For those who want to make more substantial (and therefore costly) changes to their home, the best option is a secured loan.
Make large-scale renovations
Increase the value of your property
No need to take out further loans
Borrow up to £5 million with Secured Loans
A secured Home Improvement Loan will usually use your home for as collateral. This means that, should you default on your monthly payments, the loan provider will be able to recover the amount owed through the equity in your home. Secured loans offer competitive interest rates, and can be very worthwhile in the long-term if they are going towards increasing the value of your home.
Home Improvement Loans May Be Used For:
- Big fixes such as roof replacements
- Add-ons such as ensuite bathrooms
- Carpet or wood flooring replacements
- Window fixes
- Double glazing
- Creating additional space, such as with extensions or conservatories
- Adding safety systems
- Energy efficiency improvements such as with insulation
- Superficial retouches such as repainting
- Garden improvement
- Whole house restoration
- Loft conversions
- Basement conversions
- Kitchen and bathroom remodels
Is a secured Home Improvement Loan Right for Me?
A secured Home Improvement Loan is a viable option for you if you own a property which could do with some relatively significant fixes and renovations. Not only will a Home Improvement Loan provide you with vastly better living standards; by renovating your home, the loan you take out against it could prove to pay itself back by enabling the property to go up in value. You will benefit from the higher amount of equity in the property if you then came to sell it.
If your credit score isn’t up to scratch for a personal unsecured loan, then a loan secured against your home is the best option for you. The lender has an asset by which their money is safeguarded should you fail to make your payments, so your credit rating is of little importance.
You may be eligible for a Home Improvement Loan if you:
are over 18 years old
have a steady income – are able to make monthly payments
have a property to use as collateral
Before taking out a secured loan, you must ensure that you have the means to make your monthly repayments so as to avoid the risk of repossession. It is important to note that repossession is usually the last resort for most lenders.
Contact us for more information on Home Improvemet Loans and how they can help you.
Your home may be repossessed if you fail to keep up with your repayments.