How To Raise Money For Home Improvements

 

Savings

You’re unlikely to find a more cost-effective way of paying for home improvements than using money from a savings or bank account. By using savings, you can pay for the work in full without taking on any debt or losing money unnecessarily due to interest. By using money you already have to improve your home, you may increase the property’s value without having to factor repayments into your budget in the future. There is a downside to paying with cash. If something was to go wrong, such as the company carrying out the work going bust or failing to complete the job, you would have less protection legally. If, however, you’d put the cost on a credit card, you’d have more cover financially.

Personal loan

Whether you’re planning to invest in a loft conversion or turn your cellar into a bedroom, a personal loan may be necessary, particularly if it would take you many years to save the money you need. It’s crucial that you compare interest rates from different lenders and read the terms and conditions thoroughly. Although you’ll gain access to the funds you need, you’ll need to pay this money back each month along with interest. Late or missed payments could damage your credit rating and impact your ability to borrow in the future.

A credit card

As explained earlier in the post, a credit card can offer you protection in the event of faulty or incomplete work. Often, you’ll be able to claim any money lost back from your card provider. A card offering a 0% introductory rate could be particularly helpful as you’ll be able to clear the cost during the interest-free period. Any costs left over once this period is up will be eligible for interest.

Remortgaging your property

If you own your home, you could potentially free up cash for home improvements by remortgaging your property. Borrowing against your home is not to be taken lightly, as you may need to extend your mortgage term or repay a higher amount each month than you do currently. To ensure you get a good deal, it may be worth contacting a mortgage broker for help. They’ll help you identify the best remortgage deals available before guiding you through the process from the initial application stage through to completion.