What is Home Improvement Loan?
Home improvement loans provide you with the opportunity to borrow a specified amount to fund renovations to your home. The loan typically takes the form of an unsecured personal loan, but the loan can also be secured against your home, allowing you to borrow a larger amount.
Typical home improvements are kitchen renovations, bathrooms, or even adding an extension to your house. There are several benefits to taking a home improvement loan, not only you will have a fresh new kitchen, but you will also be adding a lot of value to the house and if you decide to sell it, you could potentially add 20% to the value of your home.
There are different types of loans you might want to consider, including personal loans, secured loans, and guarantor loans. It's important you know which type of loan is suitable for your needs.
Personal Loans: You can borrow small amounts of money and you might even be allowed to start repayment after a few months. You also don't have to use your home as security.
Secured Loans: You can borrow a large sum of money, which can be up to around £100,000 but you need to be constant with your repayments as you could risk losing your home.
Guarantor Loans: You might want to consider a guarantor loan if you have a bad credit history as it can help you get approved for a loan. You don't have to use your home as security.
How can I get a home improvements loan?
You first have to decide what is it that you want to renovate in your house, is it the kitchen, the bathroom, a particular room? Consider the costs that might imply doing that by doing research and getting quotes from suppliers. Calculate how much you can afford to borrow and repay each month, consider your income and your spending.
Once you get an idea of where you are standing, find a loan that fits your needs, the best way to compare different lenders is by going to a broker, we can find the best product for you at the most competitive rate, we will check your eligibility and help you with the application once you are happy with the terms and conditions of your chosen lender.
FAQ
It's possible to get a home improvement loan if you have bad credit. However, lenders may offer you lower limits and higher rates, as this helps them reduce the risk of you not paying them back. They may also want to use your home as security, meaning you could lose it if you don't keep up with repayments.
You can use a home improvement loan to fund any type of furniture.
Yes, absolutely - borrowing extra on your mortgage is a pretty common way to fund major home improvements, such as renovating part of your house, adding a loft conversion, or putting in a new kitchen.