Home Improvement Loan
If you own your own home, and want to make improvements to it to increase its market value, or simply to enjoy more space without the inconvenience of having to save up, a home improvement loan secured on the equity that you have built up while owning the house can be the ideal way to get what you want. Thanks to the way in which house prices have risen over time, along with the fact that as you pay off the mortgage on your house, the amount that you owe on it falls, you can actually have a substantial amount of money tied up in your home that is easy to access.
By borrowing money against the value of the equity you have in your home in the form of a secured loan, you can release this money for projects that can really benefit you. Whether you want to get a new bathroom, a new kitchen, fit an en-suite bathroom to a bedroom, or simply have your house redecorated, you can easily get a loan to cover the amount you need at a low rate of interest if you choose a home improvement loan.
Provided that you have enough equity in your house, it is possible to borrow enough money to pay for more ambitious projects such as complete extensions and loft conversions too. The great thing about funding building work in this way is that as you carry out the work, you actually increase the value of your house, and therefore the amount of equity that you have. Using the value of your home to increase the value of your home means that with little investment, you can actually make a profit, especially if the average market value of the property rises over time too. Indeed, the real terms cost of a secured loan for home improvements can be tiny.
Typically, a £15,000 extension that adds 3 rooms to your house can increase its market value by more than double that amount, making you a huge profit on your borrowing. If you borrow the whole amount against the equity in your house for 3 years at an interest rate of 7 percent, the total that you will repay is 463*36.