Are there alternative ways to finance home improvements?
Depending on your circumstances, there are other ways to finance home improvements that may be more suitable for you.
If you’re only planning to borrow a relatively small amount, a personal loan may be useful. This type of unsecured loan is usually quick and simple to arrange. You pay back a fixed amount each month for the agreed duration of the loan. However, you tend to need a good credit rating and costs will generally be higher than on secured borrowing. As the loan is not secured, you won’t be able to borrow as much money as remortgaging or through a homeowner loan.
Although more commonly used to help complete the purchase of property, a bridging loan can be used to boost the value of your property in the short term. If you’re planning to sell your property but believe you could increase its value by making home improvements before doing so, a bridging loan may be appropriate. However, bear in mind that this type of loan usually comes with high interest rates and additional arrangement fees.
It’s important to consider all of your options carefully, so that you can get started with your home improvements without worrying about money. If you need advice about any aspect of financing home improvements, Loan.co.uk can help.