Home Improvement Loan – the Low Cost Finance You Need to Renovate Your Home

More and more people in the UK are looking to improve their home rather than move house. Home improvements as varied as a new kitchen to the building of a swimming pool or the installation of solar PV panels are being carried out across the length and breadth of the UK.

However, many home improvements aren’t cheap. Even if you decide to join the millions of people already carrying out ‘do it yourself’ work in the UK, the cost of an extension, new bathroom or loft conversion can run into several thousand pounds.

A popular way of funding major work around the house is through a home improvement loan. Our guide looks at how home improvements can add value to your property and how you can fund the work.

Home Improvements Increasingly Popular in UK

Figures from Lloyds TSB in 2009 found that the amount of money people spent on home improvements reached a massive £16.6 billion in 2008. This represents a £2.5 billion increase over the past ten years as more and more Brits see the benefits of improving their homes.

And, more and more Brits are carrying out improvement work themselves. The research also found that over the last decade, DIY spending has increased by 42 per cent whilst spending on builders fell by 11 per cent in real terms (from £6.4 billion in 1998 to £5.7 billion in 2008).

Nitesh Patel, Economist at Lloyds TSB, said, “Total spending on home maintenance has increased substantially over the past decade, though home owners are increasingly looking to undertake the work themselves instead of contracting to tradesmen.”

The Costs of Renovating Your Home

Carrying out home improvements is a great way of adding value to your property and making it more attractive to prospective buyers. However, depending on the work you plan to undertake, home improvements can be expensive.

A conservatory or extension can cost in excess of £10,000 whilst consumer group Which? reports that the average cost of a new kitchen is £8,000. And, according to Channel 4, the average cost of a new bathroom is £1,300 if you do the work yourself or £3,250 if you employ a professional.

Even basic home repairs can run into several thousand pounds. It is not unusual to pay £350 per new window, £500 for a new front door or over £1,000 to have your roof repaired.

So, if you need to finance the costs of your renovation or redecoration, why not consider a home improvement loan?

Low Cost Finance to Improve Your Home

Home improvement loans are secured against your property. In order to apply for a loan you will typically have to have a reasonable amount of equity in your home. You will also have to provide that you can afford the repayments on a monthly basis.

Whilst home improvement loans are an affordable, simple method of borrowing for everyone, they can be particularly useful if you are self-employed or you have experienced credit problems in the past. Many lenders require limited proof of earnings from self-employed applicants whilst many others are happy to agree a loan even if you do have defaults, County Court Judgments or missed payments.

So, if you are looking for a simple, low cost way to finance repairs or renovation, a home improvement loan should be top of your shopping list.

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