Are you a homeowner with shared home equity? Do you seek a bad credit loan for home renovation? Do you want to enhance valuation of your home? Can you become debt free with the help of a long-term loan? If such burning questions are affecting your good night’s sleep and you seek an affirmative answer on the same, there is a good news. It is possible to avail a home improvement loan as a homeowner in the UK and plan value enhancement at the same time.
Calculate the cost of home equity
Being a homeowner, you can apply for a fat home improvement loan in the UK. A lot of private players online offer financial help for homeowners. You can either apply for secured loans against property or unsecured homeowner loans.
In order to know how much you can borrow as a second charge loan, calculate the balance equity of your home. Based on the equity you own, the amount of the loan would be decided.
For example: If you own a home that is worth £300,000 and the outstanding mortgage costs £180,000. This suggests you own £120,000 equity which is 40 % of the total loan value. Now let’s assume you want to borrow £90000, which is 30 % LTV for the total value of the home. The finance company would, however, lend you at the rate considering the available home equity. The LTV to available equity is 75%.
Plan the renovation
After calculating the eligibility for a loan, you need to plan the renovation expenses. Make a list of expenses you intend to incur. With bad credit, it would be fruitful to plan the renovation to enhance the valuation of the home.
Some of the solid home improvement plans to improve the worth of your property are:
Kitchen remodeling: Being a homeowner you can apply for installment loans for a kitchen renovation. A dull kitchen puts down the spirit of the entire home. After all, every member of a home uses kitchen several times a day. And as good food lifts up the spirit so does the surroundings. Some of the quick fixes such as changing the cabinet doors or simply working on the colors of cabinets would spruce up the entire environment around. Ensure that no faucets or leakages are left unchecked. Fix all the looks and maintain a happy kitchen.
Adding more space: In order to upgrade your home, consider adding some additional space! A home with an additional loft or extra rest room would certainly increase its valuation. You can use a dead end of the home such as space under the stairs to plan these projects.
When you are neck deep under debts, adding additional rental space could be a great option too. You would not only increase the asset value but would also add an added income source.
Not to forget other changes could be working on the color of outer walls, refurbishing old furniture and fixtures, refinishing wooden floor and much more. All these projects would be easy to your pocket and certainly, add to your home’s worth.
Knowing your debt requirements, you can fill a form on a loan broker’s website and begin the search for a required homeowner loan. With a registered loan broker by your side, it is more likely to deal with a legitimate lender.