Secured loans: A better option for home improvement

Home is the most valued asset a person gains in his lifetime. Everyone wants to make their home as comfortable as possible. That’s why UK homeowners very often go for home improvements. This way they not only get a new look to their dream house but also increase the market value of their home.

There are few people who are not bothered about the way their home looks. However, maximum people want their home to be modern and fitted with latest facilities. Home improvement is a major project and requires a big amount. Beside this everyone is not so lucky to arrange funds for this project. Secured loans provide you with the amount you need for home improvements. These loans are sanctioned on unutilised equity present in your property. Higher the equity, higher is the loan amount. Usually, a lender offers you a loan amount of up to 80% of the unutilised equity. However, there are lenders that might offer you 100 per cent or even 125 per cent over the value of your home.

Usually, people look forward to enhancing their living room, adding new flooring and renovating their bathrooms. If you are looking for major changes like making an addition to your floor plan; you need to have a proper idea about its cost. Beside this you require permission from authorities for any major home improvement that is going to alter the façade of the house. To cut costs of the project you need to check the rates of different contractors suitable to your requirements.

A modern and luxurious look to your home enhances your position in the society. Adding an exterior window shutters painted with stain glass, designer nurseries, ionization purification process for swimming pool, building a gym with a hot tub spa or sauna room; a lot can be done to add value to your house. Plan the whole cost of the project and then apply for secured loans. People do get inspired by watching home improvement programs on television. These programs really give an overview on how to go about making your home a better place to live. So, proper implementation of a plan can give the right look to your home while adding value to your property in the real estate market.

People planning on spending big on their homes rely on secured loans. A recent research by Halifax revealed that 58% homeowners undergo some form of home improvement in the last one year. However, one-fourth of these people did home improvement to increase the value of their home. A similar survey by Dynamic Markets for GE Money Home Lending revealed that if you perform a loft conversion, you might increase the value of your home by 22,300 pounds. The survey also revealed the top ten home improvements and the average value it added to the homes.

Home improvement funding can well be managed by secured loans. These loans not only provide a big loan amount but also involve a moderate rate of interest. Generally, APR stands around 7 per cent. However, a bad credit score can increase the interest rates. Usually, people devote a lot of time in planning a home improvement but do forget to plan for a loan simultaneously. Borrowing credit is always an easy task but the main issue is that of repayment of the loan amount. You need to plan a proper budget to make your monthly payments on time. You may increase repayment tenure, but remember you have to pay more interest on the loan amount.

So, it's better to plan your repayment properly as secured loans are given against your home. Any defaults in repayment can lead to lenders having to sell your property in order to recover his loan amount.