One of the most popular reasons why our clients take out a personal loan is to complete or start a renovation. With house prices at an all time high, it is more important than ever that you add as much value to your home as you can. The good news is that renovating a part of your home will add far more value to your property than moving. However, it is important to ensure that the work is done to a high standard. Buyers have a legitimate fear of being sold poorly renovated homes. Written with the help of our experienced staff, this is how we can help you increase the price of your property.
Home improvement personal loans
The loan will typically depend on what needs to be done and the current state of your finances. This is why it’s important to improve your credit score. Both the lender and you need to be confident that you can pay the loan back. It will also help to tell your lender if you intend to sell your home, which will reduce any doubts a lender may have about your ability to repay.
How much can we lend you?
It’s possible to borrow between £1000 and £25000*. As the loans are unsecured, your home will not be at risk. While it may seem counter-intuitive, larger loans are cheaper than smaller loans, the cheapest APRs are often for loans above £7500*.
What is the best type of home improvement loan?
Each renovator has different circumstances. There is no ‘best’ option and beware of lenders who say this. There is only the best option for you and you will need us to guide you towards the best choice.
Things to be aware of
Our personal loans are unsecured so your home will not be at risk. This is different to all other kinds of home renovation loans, which are secured against your property. Additionally,a personal loan will be approved much quicker than a home equity loan. Furthermore, they are also easier to have approved than bank loans, which are becoming more difficult to get as the economic situation worsens.
The APR of a loan is what the lender offered to 51% of applicants. So be aware that there are 49% of people who didn’t receive the advertised amount. Use our loan calculator to have an idea of what your repayments will be.
You will be provided with a lump sum which will have to be paid back monthly with interest.
Why should I invest in home improvements now?
Despite a squeezed economy, house prices in the UK are at all all time high. Therefore, investing in home improvements will ensure that you can get the most out of your property. Here is how home improvement can significantly increase the overall price of your property.
Redecoration
Something simple as a complete redecoration of your home which can cost you little more than £304 overall. Assuming a three bedroom house, you can add as much as £4400 pounds to the value of your home.
Garden
It is absolutely vital that you maintain your garden. A neglected or unattractive garden can deduct as much as £8000 pounds from the value of an average 3 bedroom suburban home. A simple £400 pound investment in a simple two day gardening job can easily yield a profit of £7600 pounds.
Loft Conversion
A loft is usually just empty space or storage room under your roof. However, with the right type of renovation, you can turn a loft into another bedroom. A basic £20 000 loft conversion can potentially increase the price of your property by up to 20%.
Bathroom
It is essential that a bathroom is not only functional but undamaged, presentable, clean and modern. A simple bathroom refurbishment costs as little as £1500 but can add up to 5% to the overall value of your property. Just ensure that the décor consists of neutral styles and colours.
Kitchen refurbishment
Like bathrooms, kitchens can accumulate a lot of damage over time. An old kitchen or one in disrepair can cost you severely. Simply spending as little as £3000 on a simple renovation will be able to increase your property value by 10%.
These are just a few of the things that you can do to increase the value of your property. Personal loan providers are eager to lend at a time when the UK property market continues to boom. We hope this gives you the confidence necessary to take vital steps to make the most of your home.
* as per the information available online/on the lender’s website as of 08/07/2022.
