How to Pay for Home Improvements

Your home is likely your most valuable asset.

Because your home is likely your most valuable asset, it should not come as a surprise to you that you want to invest heavily in your home. Home renovations can substantially increase the value of your home, plus make it infinitely more livable. According to most industry experts, for every pound that you invest in your home, you can expect to realize an extra two dollars in increased value. A brand new kitchen and brand new bathrooms may cost 30k pounds, but if done right, can add a good 50-60k of value to your home.

The question for most people is: how do I raise the capital to invest in my home? Many people live paycheck to paycheck, and simply don't have 30k pounds lying around to invest in their homes. For other people, the situation is more dire - if you are expecting a new addition to your family, then you might HAVE to perform some home renovations to accommodate this new member of your family. That might mean adding a new room to your house, or converting an existing room into a bedroom. Whatever the case, these things cost money, and many people simply don't have the funds in their bank accounts.

The good news is that because you own your own home, you can borrowing funds via a secured loan. A secured loan is a loan in which you provide collateral in the form of equity in your home, and in return, you have access to a pile of borrowing power with decent interest rates.

Here is how it works:

Let's say that you own a home which is worth 300k pounds. Let's assume that you currently have a 200k mortgage on the home, and a 15k secured loan.

To figure out your equity in the home, simply take the total appraised value of the home (300k) and subtract the total outstanding mortgage and secured loans on the property (200k + 15k = 215k).

You should arrive at 85k. This is the total equity that you have in your home.

Most secured loan lenders will lend you up to 100% of the total equity in your home. So in this case, you could technically borrow up to 85k. You don't need to borrow this much, but this is how much would be available to you.

When the loan is granted to you, the secured loan lender will be added on to your mortgage. This protects them in case you default on your loan. Because they are receiving collateral (in the form of equity on your home), they are able to offer lower interest rates. A typical secured loan interest rate is 8-9% APR. Compare this to an unsecured loan rate, and you will quickly see why borrowers tend to prefer secured loans.

Lenders prefer borrowers who are seeking loans for the purpose of debt consolidation or home improvements. The reason? In both of these situations, borrowers are enhancing their personal financial situations, thus making them more appealing credit risks to the banks.

Applying for a home improvement loan is quick, simple and easy. Simply click the link below, and you will be taken to our easy to use application form. Five minutes of your time is all that it takes to submit your details. A customer service agent will ring you up, and let you know if you have been conditionally approved. You are under no obligation to take out the loan. Apply today!



Apply for a secured loan today!