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A guide to Home Improvement Loans
Unless you qualify for a grant to help with the cost of home improvements (such as for energy efficiency or housing renovation), you will have to pay for them yourself.
If you have savings, you may be able to afford to pay for minor improvements. But for bigger improvements - such as installing central heating, improving your kitchen or building an extension - you may need to borrow money.
The cheapest way to borrow for home improvements is either to take out a "Further Advance" on your mortgage or a Secured Loan. This simply means that you increase your mortgage/borrowing by the amount required. The new total amount of the mortgage (including the further advance) will need to be less than the value of the house. You usually arrange to pay off the further advance over the remaining mortgage term - so if you take out a further advance one year into a 25-year mortgage, you would pay back the further advance over the remaining 24 years. But you can arrange to pay it back more quickly if you prefer.
Taking out a "Secured Loan" from a different lender may be more expensive than getting a further advance however it may prove to be more flexible and should be at least looked into and a comparison made in order that you may make an informed decision. Secured Loans as they are named are secured against the property and effectively stand in security terms as a second change against the property.
Taking out a personal loan is more expensive. However, these options may be suitable if you cannot get a further advance on your mortgage or a secured loan.
When you are buying a property, don't forget to add in the cost of any improvements that you regard as essential to your initial budget. Otherwise, you may find that you can afford to buy the house but not to make the necessary and desired improvements.
Contact us and we can provide you with information on the options and costs available to you without any obligation.
You may also wish to initially use the Secured Loans enquiry form
CLICK FOR MORE INFORMATION ON HOME IMPROVEMENT LOANS >
