Home improvements can add tremendous value to your property. Converting your loft, adding an improved garden space or fitting some underfloor heating can make your home an easier place to sell and a more luxurious place to live. While we always recommend using savings for this type of project, as you won’t need to pay extra money in interest and fees, it’s not always easy. Sometimes it takes too long to save up such a substantial amount of money, so borrowing might be the next best option.
What Are Home Improvement Loans?
Typically, the best home improvement loans are an unsecured personal loan. At Personal Loans Now, we could offer you up to £25,000 same-day cash if approved, for your home improvement project. Of course, the type of loan you go for is all dependent on how much you need to borrow and what situation you’re in with your finances.
Personal loans are unsecured and you can borrow as little as £1,000, which is ideal for smaller home improvements. Interest rates are usually slightly higher on smaller loans though, so keep this in mind. You don’t have to secure any of your assets to your loan, such as the home you’re working so hard to decorate, so your belongings are safe. Because of this, though, you may not be able to borrow huge amounts and you’ll need a good credit score if you want the best home improvement loans.
Secured Home Improvement Loans
As with any loan, there are pros and cons to this type, but there are more risks to consider. If you have a low credit score, you may be more likely to be approved with a secured loan as you’ll have something to offer the lender if you can’t make the repayments. With this in mind, please remember that your creditor can force you to sell your home to pay back the debt. The amount you could borrow with this type of loan is generally higher, but it also means you can’t borrow small amounts. Secured home improvement loans can be handy for major renovations.
A guarantor loan is another of the many home improvement loans UK lenders offer. With this type of loan, again you won’t have to use your property or any other collateral to secure it, but you will need to find a suitable guarantor who is happy to take responsibility of paying back the loan should you be unable to. This type of loan could work for somebody with bad credit, but typically you won’t be able to borrow substantial amounts.
Can I Apply For The Best Home Improvement Loans?
As long as you’re over the age of 18, living in the UK and have a UK bank account, you are free to apply for home improvement loans. Every lender has their own specific criteria each potential customer must fulfil in order to be considered for a loan, but all reputable lenders should put you through affordability and credit checks before they accept you. If you’re applying for a loan and this step appears to have been skipped, always approach with caution. According to FCA guidelines, every lender should put you through these checks, as they are there to protect both parties.
We are an FCA authorised and regulated lender, and we always take full responsibility for ensuring consumers understand their obligations before taking out a loan with anyone.
As always, we at Personal Loans Now urge you to consider the consequences if you can’t repay your loan on time, in full. As much as home improvement loans can be helpful to you, they often aren’t worth the risk of driving yourself into a dangerous debt spiral. Defaulting on payments can cause you serious money problems that can be damaging to your welfare. If you’re having financial issues, contact a debt advice charity as soon as possible.
Alternatives To Home Improvement Loans UK
We always try to offer you the best home improvement loans at the best rates but sometimes there are other options out there which might better suit your needs. You could look into a purchase credit card which offers a 0% interest rate for a fixed period of time. If you’re confident you can pay off your debt within this time frame, it could work out cheaper. Be wary of the interest-free period, though, as when it ends, you’ll pay the lender’s standard rate. You could also add these costs to your mortgage or remortgage your home, but please ensure you do your research before taking steps towards these options.
Personal Loans Now – Best Home Improvement Loans
As a direct lender and premium broker service, we can help you find the right loan for your needs. Apply today for an instant decision, and same-day pay-out if approved!
Last modified: November 15, 2019