Home improvements

Why should you make home improvements?

Home improvements can be a great way to make a property a better place to live, whilst simultaneously increasing its value.

However, even though making improvements to your current house or flat often works out a lot cheaper than trading up to a larger home, many projects still require significant financing.
Regardless of whether you need a new kitchen, need to fix your rooftop or are arranging an expansion that will remodel your home, you may need to loan cash to subsidize the work. A low-rate personal loan can be the ideal way to do this.

This quickbreakdown of home improvement loans should help you decide whether it’s the right finance option for you.

Finding the right home improvement loan

Finding the right home improvement loan

Personal loans deals, much the same as those available on other financial products such as credit cards and bank accounts, for example, vary widely. However, by securing the best terms and lowest interest rate possible, you can make a massive difference to the amount you repay.

By using loans channels such as the one provided by Money Supermarket, you can compare hundreds of different loans from a wide range of lenders.This tool allows you to search personal loans and see which lenders are most likely to say yes to you. What’s more, it’s fast and easy to use and the search won’t leave any imprint on your credit report.

Advantages of a home improvement loan

  • A personal loan is a popular means of funding home improvements due to offering the chance to borrow up to £15,000 over five years.
  • Payments are fixed when taking out a personal loan, which makes it easier to budget. You can also generally choose to repay the amount borrowed over one to five years.
  • This means that if you can afford to repay the loan within a shorter timeframe it’ll cost you less in interest, but you also have the choice of spreading the cost and reducing the size of the regular repayments if necessary.
  • Some loans also offer the flexibility of a payment holiday of say two or three months at the start of the agreement.

Disadvantages of a home improvement loan

  • You will often pay a higher interest rate to borrow over a term shorter than three years, as the best loan rates are generally for borrowers looking to make repayments over three and five years.
  • But your financial assessment additionally has a significant impact both on the interest rate you will pay on a loan, and the amount you will have the option to borrow.
  • Every time you apply for a personal loan, it leaves a record on your credit report. Such a large number of uses over a brief timeframe will make you look much less attractive to lenders.
  • Any rejections for credit are also noted on your credit report, and will damage your credit score. That’s why it’s important to check your credit score before you apply for a personal loan; you’ll be able to see how strong or weak your score is and review your options accordingly.