If you plan on making renovations or repairs to your home then a secured home improvement loan will make total sense.
These types of loans are beneficial for people that were not able to embellish their homes with the decorative features and structural improvements they desired at the time of construction or purchase. Typically, if you convert the loft into a new living space, or add a garage or additional bedroom, then the value of your property will also increase, sometimes significantly.
Secured Home Improvement Loans can be used to finance:
- New kitchens or bathrooms
- New home furnishings
- Any other home improvement purposes
Most secured home improvement loans will require you to use your home as collateral against the loan. The amount you can borrow and the interest rate you qualify for are entirely dependent on your personal finances and the amount of security you are able to offer. Home improvement loans that are secured with your property are the easiest and quickest loan to apply and qualify for, as the security is built into the loan. The lender is risking less and is, therefore, more likely to approve the loan and give you a low interest rate.
Once you receive the money, you can use it for any reason you see fit, as long as it is related to improvements to your property.
Advantages of secured home improvement loans:
- Easy to qualify for if you use your home as collateral
- Low interest rates
- Home improvements will usually increase the value of your home