Home renovation is a fabulous way to give your home a new lease of life and to fall in love with your home all over again. Perhaps you're a first-time buyer and looking to put your own stamp on your first property... But let's be honest, homes and renovation is #Spenny (very expensive)
So before finalising your ideas, there are a couple of options for financing home improvements you can consider:
- Credit cards
- Home improvement mortgages
We recommend seeking professional advice first before anything to ensure you're exploring the right options here for you and your finances.
Did you know there are in fact two different types of home improvement loan options for people to choose from - unsecure and secured:
- These are personal loans that don't require collateral.
- Most unsecure loads are designed for anyone looking to borrow between £1,000 and £25,000.
- Generally, you'll need good credit to take out an unsecure loan.
- Often referred to as homeowner loans
- Secured loans are usually secured against your home or another asset.
- They can be taken out for higher amounts than unsecured loans.
Remember - the terms and rates will vary due to personal circumstances
Home improvement mortgages
Borrowing on your mortgage there are more limits and conditions set by your mortgage provider such as home improvement mortgages are not an option for first time buyers. The process of signing up can be complicated involving professional advice from a mortgage broker as it requires plenty of additional paperwork.
The debt is added to your current mortgage and can free up funds to cover those necessary renovations to your home but the amount you can borrow will depend on your credit rating, how much equity is available in your home, and the amount your renovations will increase the value of your home.
👉 Click here to see the full article covering information on budgeting for home improvements
Feel free to ask the experts on the Ask A Trade board too!