How an Adverse Credit Home Improvement Loan Can Help You Refurbish Your Home

Over the last few years it has been increasingly difficult to move home. Falling house prices and a lack of mortgage finance has meant that many people have decided to stay put and improve their home rather than move elsewhere.

Many people have redecorated or refurbished their homes in order to improve them and to add value, whilst those in need of more space have chosen to increase the living area of their home through extensions or conversions.

Experts are not surprised that more and more people are deciding to improve their own homes instead of moving. Stephen Noakes, commercial director at Lloyds Banking Group, said: "In the current housing market, many people have decided to stay put rather than move. Therefore, it is no surprise that we've seen an increase in people adding space to their property to make it more suitable for their current lifestyle."

Average Cost of Home Improvements Now £5,300

Research carried out by the Halifax in 2009 found that the average annual amount spent on home improvements in the UK had reached £5,300.

The research also found that one of the most common types of improvement was to create extra living space – either through a conservatory, extension, garage or loft conversion or a reconfiguration of the existing rooms. The Independent reported in 2010 that ‘extensions have long been a popular way to add extra living space, and can push a selling price up by as much as 10 per cent.’

Michael Holmes, a spokesman for the National Home Improvement Show, agrees. "The most cost-effective route is typically to convert the loft, followed by an extension, or converting the garage or even a cellar,” he said.

How an Adverse Credit Home Improvement Loan Can Help You Improve Your Home

Whatever work you plan to undertake, home improvements are not cheap. According to the Building Cost Information Service (BCIS), the cost of home improvements rose by 20 per cent over the two years to 2008 thanks to a shortage of tradesmen and rising raw material costs.

Research from channel4.com has revealed that the average cost of a new fitted kitchen is £5,000 although you can easily pay more than double that for a substantial refit or for high quality appliances. Similarly, a new bathroom costs £1,300 if you undertake the refit yourself or £3,250 if you employ a professional. Extensions and conservatories are even more expensive - a double storey extension likely to set you back at least £20,000.

Raising the cash needed to complete your home improvements is therefore likely to be high on your agenda. And, if you have poor credit or defaults, it could be even tougher to find the cash that you need.

That’s where adverse credit home improvement loans can help you. If you have equity in your home you are able to take out a loan secured on your property, even if you have a poor credit rating.

Lenders will typically lend up to 75-90 per cent of the value of your home, less any existing mortgage or secured loans. You can choose your repayment term and benefit from payments that are affordable to you.

So, whatever type of improvements you want to make to your home, an adverse credit home improvement loan could be the perfect way for you to fund your project.

To get your home improvement loan, fill our form on the right.