Loans for Home Improvements

Loans for Home Improvements

If moving home isn’t an option that appeals to you, you might have considered carrying out some home improvements instead. Improving your home is a great way to make your household a more enjoyable place to live whilst (if done correctly) boosting the value for when it’s time to sell. A home improvement loan can come in the form of either a secured loan or an unsecured personal loan, and when it comes to financing your home improvements, you should assess the pros, cons and suitability of each loan to your personal circumstances.

Unsecured Home Improvement Loans

Many lenders offer unsecured personal loans designed specifically for funding home improvements. An unsecured personal loan is taken over the short term (typically between 1 and 5 years). Unsecured loans are often favourable over secured loans as they do not require that your home is put up as collateral. Additionally, these loans can provide funding for improvement projects of up to £25,000. Whilst the time it takes to process an application is usually far shorter with unsecured personal loans, they tend to have higher interest rates and are harder to obtain if you suffer from bad or adverse credit.

Secured Home Improvement Loans

Secured loans can generally be used for pretty much any purpose, including home improvements. It requires you to use equity in your home as collateral, which means you run the risk of losing your home should you not be able to keep up with repayments. Whilst you have more at stake to lose with a secured loan, you generally can expect receive more attractive interest rates and larger borrowing amounts. A secured loan for home improvements are also favourable in situations where you have a less-than-perfect credit score as lenders tend to be more flexible in regards to their borrowers criteria.

Find the best home improvement loan for you

Ultimately, there is no right or wrong answer as for which loan to choose for your home improvements. The suitability of each is likely to depend on each person based on their personal circumstances. That’s why we recommend contacting a mortgage broker who can help analyse your situation and give you unbiased guidance and advice, so that you can achieve your home improvement goals.

If you have any questions or queries about home improvement loans, why not call us today on 0117 313 8872, for a free initial consultation.