Research shows that home modification is a worthwhile way to raise the asking price of your home without breaking the bank.
Be it a small DIY job or a larger renovation project, it’s important to know how you’ll fund your improvements before you make a start. In this piece, we explore some of the options available to help you make a start on improving your home.
Secured home improvement loans
For bigger home improvement projects, a secured loan can be an effective way to borrow larger amounts of money you need to get the job done. This type of borrowing is secured against your home, giving you the ability to borrow a larger amount.
However, it’s important to make sure you can afford repayments before you take out such a loan, as failure to repay could put your home at risk.
Secured loans can be a better option for those carrying out larger scale home improvements, as they allow you to borrow more money over a longer period and generally have a lower rate of interest than other products.
Larger projects you might consider a secured loan for include:
Fitting a new kitchen
As the focal point of a home, giving your existing kitchen a stylish and modern look can help attract potential buyers.
As one of the key areas buyers focus on when looking for a new home, renovating your kitchen is essential to provide that ready-made desirable space, which could increase the value of your property by an average of 6%.
Adding an extra bathroom
Installing a desirable bathroom will entice potential buyers. Fitting an extra bathroom into your property can boost the value of your home by as much as 5%.
Building a new conservatory
Conservatories can be one of the more costly home improvements, but they’re also one of the most valuable. Not only does it give you a new place to read and relax, or add space to your home, it can also increase the value by an average of 5%.
Fitting new windows
New windows and doors are an excellent idea for anyone considering selling up – kerb appeal is a huge influence when it comes to selling your home, so it’s vital the property looks as good on the outside as it does inside.
Unsecured home improvement loans
For those for whom secured borrowing isn’t an option, or who are carrying out smaller DIY projects, unsecured loans can be a viable way to fund your home improvements.
This type of borrowing doesn’t require you to secure your loan against any of your assets. However, this means you are likely to be able to borrow less and will have higher interest on your borrowing.
Unsecured loans can be easier to obtain if you already have a good credit rating, as lenders may see you as a lower risk.
Unsecured loans can be a good way to obtain the money you need to carry out smaller home improvement jobs, such as:
Maintaining the exterior
The job of maintaining your home’s exterior isn’t just about keeping up appearances; it’s about protecting and preserving timber, tiles and stone from the elements for many years to come.
Decking can really lift a garden, providing a lovely place to relax, somewhere to socialise, and adding an extra ‘room’ to your home.
Giving your garden a facelift
Refreshing the garden can really give your home a new lease of life, whether you’re installing a flower bed, replacing the lawn or taking on a more ambitious project. If light is an issue, consider removing the trees that block out the sun. Replace any fencing that’s seen better days, build a pretty rockery or garden pond.
Laying a new driveway
A smart driveway, whether pebbled or paved, gives a property a cared-for, welcoming appearance all year round, as well as giving you an extra car parking space off the road.
There are other ways to finance home improvements too. For example, some smaller jobs can be done by yourself, such as painting and decorating. For larger jobs, secured and unsecured borrowing can help you make the changes you need to your property.
Visit the Know How blog for more about the different kinds of borrowing, to help your home improvement budget.