Want to upscale your home, but do not have adequate funds in hand? Getting a loan for home improvement can help you fund necessary makeovers and renovations. Find out in this blog- how getting home improvements done with a loan can help your house.
Our home is the true reflection of us and our interests. A home is the basic necessity of every human being apart from food and water. Not only for us, but housing is considered to be an important element of a nation’s development.
We may all want to renovate our homes to give vital repairs and livelihood work or enhance their aesthetics and satisfaction. Both can have a heavy price badge, but it’s worth paying for the price. However, people usually get confused to find the best alternative- some consider using a bank loan and apply for mortgage loans, while others seek online lenders to obtain unsecured loans.
Using an online lender to get an unsecured personal loan for home improvement
Online loans and lenders have made the lives of the homeowners in the UK- easy. Basic eligibility standards and a favourable credit score- You are GOOD TO GO!
A lender needs to be sure that you’ll be able to pay the money back without any guarantor, and you get your loan approval in minutes. The interest you get charged on your unsecured homeowner loan in the UK can be either fixed or variable, depending on your lender. If you’re seeking a smaller amount of money, then an unsecured loan can be a good idea. The loan proves to be an ideal borrowing option to carry out home improvement projects without using your property as security.
Using a personal loan from the bank for home improvement
Bank loans are secured loans. For these loans, you take a loan out against your house if you’re a homeowner or you have a mortgage. You generally borrow the cash against the equity or value of your home. The amount of money acquired is for a set period within an agreed repayment schedule. The repayment amount will depend on the amount and duration of the loan. However, if a borrower fails to repay a loan borrowed from a conventional bank, your lender can take the funds you owe them from the equity you’ve built up on your property.
People with bad credit records usually find it difficult to take out a loan from traditional banks. They have high eligibility standards set to lend money to borrowers. Because their lending is bound by the money you have in your property. Secured banks will usually offer lower interest rates with a fixed amount for a longer-term.
Home Improvement and Brits!
Home renovations are an unusual way to enhance the overall value of your property while expanding your home. The latest report released by Post Office Money shows- that over the last five years homeowners have spent £295 billion on home renovation. This led to an addition of £40,000 in the estimate of the overall property. Many of them further use home improvement loans in the UK to restructure their homes.
Regionally, Londoners are the most likely homeowners to have taken out a renovation project in the past decade at 66%, with 14% currently getting more work done.
Four Reasons for Getting a Personal Loan
You can use the money you borrow for almost anything- this is the beauty of a personal loan. Here are four main reasons why individuals claim these loans in the UK:
1. Home improvements: Home enhancements are needed to keep up with the contemporary changes around you. Unfortunately, some home upgrades could be very costly. You can take loans to refurbish the kitchen, toilet, garage or even your loft with enough equity to operate with.
2. Debt consolidation: One of the most common uses for personal loans is to consolidate your prior debts. Multiple loans or outstanding credit card debt, the loan can be a helpful recipe for any financial trouble. When you apply for credit and use it for debt consolidation, you’re merging all of those outstanding balances into one monthly repayment. Consolidation makes it easier to work out a timeframe to pay off your debt without getting overwhelmed.
3. Taking a vacation: Some people dream of an exotic vacation that they see as a once in a lifetime opportunity, a holiday that they could not do otherwise. Some of them are worth receiving an unsecured loan to make the dream come true.
4. Start a small business: Finally, homeowners can choose such loans to begin a small enterprise. Small business can help you build your finances. If you can repay the loan on time, you can use the amount received in your side-hustle for its growth and sustenance.
The Bottom Line
There are many means to finance for home improvements- from personal loans to conventional home improvement loans to credit cards and home equity lines of credit from banks. Despite, which type of loan you’re considering, and what type of lender you want to go with- shopping around will always help you make a good decision.