Home Improvement Loans
Are you desperately in need of more room in your family home? Or have a dated looking bathroom but can’t afford to move? Maybe it is time to spend some money on your house.
Making any changes to your house can be expensive, and maybe your savings don’t cover it. In this situation it may be worthwhile getting a home improvement loan to cover the cost.
Benefits of a Home Improvement
When making changes to your property there are several potential benefits to explore. Home improvements often promise a higher standard of living through increased room and floor space, or achieving a ‘dream house’ goal you have held for a number of years.
Making home improvements could lead to an increased value of your house in most cases. This means that when it comes to selling your house it could be worth considerably more than what you originally paid for it. The best way to make sure you are set to receive return on your investment is to have the property valued before and after any home improvement work is carried out. Asking estate agents for tips on adding value is recommended for keeping the improvements or projects on task. A good example of this is a loft conversion or a conservatory added to the property.
Another benefit could be creating Equity in your house. If you have a mortgage and you make your house more valuable than when you took the mortgage out you could increase your mortgage to the value of the house and get a lump sum from the lender. This could either be used to pay off the home improvement loan, or to potentially make further improvements and increase property value.
Adding something like Double Glazing or increased insulation in the loft or wall cavities could be seen as an investment, and is something that could be bought with a home improvement loan. Both of the examples mentioned above will save you money over time in central heating costs by keeping your house warmer using less energy. Useful improvements such as these will not only save you money in the long term, but forms an expected standard in regard to insulation
Alternatively you may just want to make minor home improvements, for example to decorate your house. Financing these changes would not cost as much and if you needed to borrow money then a Short Term Loan may be more suitable to your needs.
Best Types of Loans
Many lenders will offer a specific home improvement loan, but in reality this is no different to a personal loan. These are usually unsecured loans and you can borrow up to £25,000 usually for no longer than 5 years.
Money Guru offers a loan comparison where you can view the UK’s top Personal Loan companies in one place giving you the best chance of selecting the right lender for you.
Money Guru also provides a Smart loan search application that will take your application to the UK’s top trusted lenders and find you the lowest APR loan available to you. All in a couple of minutes! Saving you time and stress.
Are there Disadvantages?
Applying for any form of credit will be recorded on your credit rating; if you are declined credit this will negatively affect your credit rating, making it even less likely you will get accepted the next time you apply. Applying through Money Guru’ Smart Search we can find you a lender who is willing to accept you without checking your credit rating! So using the Smart Search is risk free*.
Of course with taking out any finance we always advise that you make sure you can pay back what you borrow without leaving yourself stretched, if you need to discuss your debt with someone or are in need of help please visit www.gov.uk