How a Home Improvement Loan Can Help You Finance Your New Kitchen

Refitting your kitchen is one of the easiest and most popular ways of adding value to your home and making it more attractive to potential buyers. In addition, a new kitchen gives you a great, functional space for you and your family.

However, a new kitchen isn’t cheap. The cost can often run into several thousand pounds, meaning that you will have to find cash to fund the refit. One of the most popular ways to pay for a new kitchen is by using a home improvement loan. Affordable and easy to arrange, home improvement loans could be the perfect way for you to get your dream kitchen. Read on to find out how these loans can help you get the kitchen you want.

New Kitchen Can Add Value to Your Home

A great kitchen is one of the most important factors when selling your home. Television property expert Phil Spencer told the Daily Telegraph in 2010: “If you are only going to improve one room, make it the kitchen.”

The consumer magazine Which? found that, on average, people spend around £8,000 on a new kitchen. However, the actual cost can range from a few hundred pounds to over £40,000. If you do much of the work yourself and buy replacement cupboard doors the cost can under in at under £1,000. However, a bespoke fitted kitchen can cost £20,000 to £40,000.

The secret to a new kitchen is also to spend a sum proportionate to the value of your home.  As the Location, Location, Location presenter says: “There is no point putting a £25,000 kitchen in a £250,000 house; you won’t see your money back. Equally, put a £10,000 kitchen in a £1 million house, and you will drag down the value.”

Whatever you spend on your new kitchen, the chances are that you will make it more attractive to potential buyers as well as adding to your home’s value. The Daily Telegraph reports that ‘typically, a new kitchen will add 4.6 per cent onto the value.’

Finance Your New Kitchen with a Home Improvement Loan

One of the best ways to raise the money you need to undertake a kitchen refit is through a home improvement loan. Home improvement loans are secured against your home and can be arranged over a term that fits your budget. Lenders will typically lend around 75 to 90 per cent of the value of your home, less any existing mortgages or secured loans you have on the property.

As well as the equity in your property, a home improvement loan will also be based on other factors. A lender will want to assess your income and outgoings to check that the loan is affordable to you. In addition, they are likely to conduct a credit check. Whilst you are likely to benefit from the best interest rates if you have a clean credit history, it is possible to obtain a home improvement loan even if your credit rating is less than perfect.

So, whether you want to create a beautiful new room for your own use, or you are looking to add value to your property, a home improvement loan can help you finance the great new kitchen you are looking for.

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