Bad Credit Home Improvement Loan – Funds to Renovate Your House

Do you have a perfect credit rating?

If not, you are not alone. Increasing numbers of people in the UK are having financial problems, resulting in more and more missed payments and adverse credit. However, even if you have a less than perfect credit rating, it is possible to obtain the finance you need to improve your home. Bad credit home improvement loans allow you to fund your new kitchen, new bathroom or extension, even if you have the odd blip on your credit file.

Increasing Numbers of People in UK With Bad Credit

A recent survey from the financial services website found that 26 per cent of credit card holders have been charged at least once in the twelve months for missing a minimum payment whilst a further 8 per cent have missed three or more payments in the last year.

The consumer charity Credit Action reports that 1,603 consumer County Court Judgements (CCJs) were issued every day during the last quarter of 2010 and the average judgement amount was £3,245. The Citizen’s Advice Bureau deal with 8,004 new debt problems every day in England and Wales whilst one person is declared insolvent or bankrupt every 59 seconds of a working day in the UK.

So, with increasing numbers of people experiencing debt problems, it is no surprise that more and more people’s credit history is less than perfect. Whilst a bankruptcy, mortgage arrears or a County Court Judgment are the most serious credit problems, even missed credit card payments can prevent you from being agreed for loans, mortgages and credit cards.

Finding Finance to Redecorate or Refurbish Your Home

With more and more Brits deciding to stay put and improve their home rather than move, home improvements have become popular over recent years. However, the cost of home redecoration and remodelling can run into several thousand pounds.

Consumer magazine Which? reports that the average cost of a new kitchen in the UK is around £8,000 whilst an average bathroom costs £3,000. A conservatory and extension can set you back in excess of £10,000 whilst even basic redecoration can cost several hundred pounds.

However, home improvements can also add value to your home. TV property expert Phil Spencer told the Daily Telegraph in 2010 that a new bathroom adds 2.88 per cent to the average house value, whilst a new kitchen can add 4.6 per cent to your home’s value.

If you want to make your home more attractive and add value by carrying out home improvements, one of your main barriers will be finding the finance for the home improvements. That is where a home improvement loan can help you.

Bad Credit Home Improvement Loans Could Be the Solution

Bad credit loans allow you to borrow against the value of your home even if you do have defaults or missed payments. Lenders typically lend around 75-90 per cent of the value of your home (less any existing mortgages or secured loans) for you to undertake the home improvements you want. You can spread the repayments over a term of your choosing in order to make them affordable to you on a monthly basis.

Bad credit loans are also idea if you are self-employed as they often require less proof of earnings than a remortgage or other loan.

So, if you are looking to undertake improvements to your home, but you’re worried about your credit rating; don’t be. Bad credit loans could be just what you are looking for.

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