Home Improvement Loans
Making improvements to your home such as building extensions, altering the current layout, making repairs or adding a new bathroom or kitchen are a great alternative to moving house and can be a less expensive option. If you are looking to move, home improvements can help to add value to your property.
Home improvements can require a large initial spend that a lot of homeowners don’t have, so a loan can help to get a quick injection of cash which you can pay back over time.
How a home improvement loan works
A home improvement loan works in the same way as a personal loan, where you borrow a set amount and pay this back monthly over a fixed term.
As with personal loans, home improvement loans can be either secured or unsecured. Second charge mortgages – more commonly known as secured loans or homeowner loans – are where an asset, usually your house, is used as security for any missed payments. Unsecured loans allow you to simply borrow the money but typically have a lower limit to what you can borrow and a higher interest rate.
Which loan is best for you?
The type of loan you should take out for home improvements will largely depend on your circumstances and how much you need to borrow. If you need to borrow a large amount – typically above £15,000 – then you should consider taking out a secured loan as it’s unlikely that you will be able to take out this much through an unsecured loan.
If you have suffered from a history of bad credit then you may be more likely to be approved for a secured loan to help cover your home improvements.
Your property may be repossessed if you do not keep up repayments on a mortgage, loan or any other debt secured on it.
Loans with Better Chance Finance
We work with providers who use a panel of lenders in order to get the best deal for you. At Better Chance Finance we have been authorised and are regulated by the Financial Conduct Authority (FCA) and follow the Treating Customers Fairly (TCF) guidelines, so you can be certain that we will always treat you with integrity.