What are home improvement loans?
Loans for home improvement are personal loans that borrowers use to pay towards the costs of renovating or updating their homes. Some choose to take out a home improvement loan to make practical improvements like installing central heating, rewiring or updating windows and doors. Others opt to pay towards a new addition to their homes such as converting the loft, building an extension or making a few cosmetic changes. Either way, the loan can lead to a more pleasurable place to live, as well as adding real value to a property.
Choosing the right kind of home improvement loan?
Like other personal loans, home improvement loans can be secured or unsecured. A secured home improvement loan is underpinned by an asset – usually your home itself. They’re only available to homeowners who have built up some equity in their home, although they can also be secured against other assets, such as a vehicle. With a property as security, lenders can offer better interest rates and repayment periods. Unsecured home improvement loans are usually offered with fixed interest rates and less flexible repayment periods.