|
How to Compare Home Improvement Loans
With every other show on TV showing you how and what to do to improve your home, it's no wonder we all want to get involved.
If, however, you don't happen to have wads of cash stuffed under your mattress, home improvements can drag on, whilst you struggle to finance your project and become increasingly disinterested in the work.
A home improvement loan can really boost your chances of success by allowing you to get everything you need for the job upfront and hire any help required.
Home improvement loans are good for...
- Different financial situations
As these loans are available in both secured and unsecured format you don't need to panic if you haven't got a sterling credit history.
Secured home improvement loans will be likely to offer you more money and a longer repayment period than their unsecured counterparts. So if you have big plans ahead they may be worth considering. However, the money borrowed will be 'secured' against your property. (i.e. if you don't pay back the loan the lender can repossess your property).
Unsecured home improvement loans will let you borrow less money, but you will not have any possessions, such as your property, held as collateral. As they are more of a risky investment for the lender, however, you will have to undergo credit checks to assess your liability, so a shaky financial past may jeopardise your chances of being accepted.
- Larger projects
If the full extent of your home renovations add up to a lick of paint and a new set of curtains, a home improvement loan will probably be a slightly extravagant financing option. The minimum loan amount is usually £1000 and the maximum can be tens of thousands (depending on your lender).
If, however, you plan on fitting a new kitchen or bathroom, or even creating a new living space (conservatory, extension etc) then these might be worth looking into. If done properly - that means by trained professionals! - the improvements to your property will not only boost your quality of life, but also the value of your home.
Home improvement loans are unsuitable for...
Whimsical desires
As you are borrowing this money and paying it back with interest on top it is imperative that you don't waste it.
Think carefully about your motives for the work; they should help you decide what work is best to do and what is best to leave...
Perhaps you have established a home you plan to start a family in and live in for many years to come? With this in mind, think about what parts of your home you spend the most time in and would improve your living standard.
If, however, you plan to move shortly and want to maximise your profits, think about what renovations will add the most value to your property (Tip: Ask a local estate agent for advice on any renovation ideas you have. They will be happy to help if you are plan on selling once you’ve finished the work!)
Look for:
- The best deal
There is plenty of variation in rates and types of home improvement loan, so you need to research carefully before signing yourself up to one.
Before looking at the different loans available, narrow the field by thinking about:
- How much you need to borrow?
- How quickly you can repay the loan amount without over stretching yourself?
- Do you want an unsecured or secured loan?
All the info you need is right here on our home improvement loan comparison page.
Watch out for:
- Dealer finance
If you are looking to get a new kitchen or bathroom, chances are you will have spent some time wandering around one or two large supplier's showrooms. If this is the case you may have encountered a salesperson touting some finance options.
The payment plans offered by retailers never stack up against a home improvement loan – the APR offered can be double that of a specialised lender - meaning you could waste plenty of your hard earned cash on interest charges; cash that could have gone towards your home!
Don't forget!
- You can make your money back!
It's rare that borrowing money in the form of a loan could make you better off, but home improvement loans - if used wisely - can be the exception to the rule.
The right home improvements can add £'s onto your property's value, but beware, as the wrong one can be disastrous.
Top 3 project types...
3. A new kitchen or bathroom will greatly improve the presentation and functionality of your home. If, however, you plan to make the renovation and move on, make sure you keep the design quite neutral, as a bright pink suite isn't everyone's cup of tea.
2. Outside space is highly desirable, particularly in city centres, so if you have potential to add some, or improve the garden you have, it will transform the look and feel of your property.
1. Adding extra accommodation. (bedroom, garage, conservatory etc) Adding an extra room will automatically add thousands onto the worth of your home. Obviously the size and extent of development will dictate exactly how much.
Compare home improvement loans
| 
