Home Improvement Loans
Moving house is expensive. There are legal fees, estate agency commission, removal costs and stamp duty. You will probably need a bigger mortgage at a time when mortgage companies may be reluctant to increase their lending. It is therefore no surprise that many homeowners are deciding to stay put and improve their homes, thereby improving the family's quality of life and the property's value and future saleability.
Home extensions can add 25% to the value of your property, and a loft conversion will typically boost your home's value by 10 - 15%. But what will the cost be and which improvements offer the best value?
According to the Royal Institute of Chartered Surveyors (RICS), the home improvements which add most value to your home are:
1. off-road parking
2. family friendly/landscaped garden
3. decorating with neutral colours
4. new bathroom
5. double-glazing your windows
So, be warned! If you add an expensive basement you may not get your money back on resale, especially in the short term. However, if you intend to stay in your house for more than five years, you will benefit yourself from the improvements. Here are some cost examples:
New kitchen - average cost is £10K to £30K
New bathroom - average cost is £5K to £15K
New Conservatory - average cost is £15K to £30K
Obtaining personal finance for home improvements may be difficult if you only consider an unsecured loan. But is this sensible? Home improvements should add significant value to your home. Not only will a well-executed home improvement enhance your home and increase the enjoyment you derive from living there, but it will also prove a good long term investment.
Financial advisors will therefore recommend that homeowners consider raising finance by:
1. remortgaging, providing you do not surrender an attractive mortgage deal
2. home improvement loan, providing the interest rate is competitive
What is a home improvement loan?
A home improvement loan is a Second Charge Mortgage: a secured loan on your property but ranks second to your mortgage in terms of the lender's security.
A home improvement loan offers the following benefits: you will be able to borrow larger sums over longer periods at lower interest rates than unsecured loans. But remember that you are putting your home up as security and may lose it if you do not keep up your loan repayments. A secured loan therefore carries risk and you should only take one out if you are confident that you can keep up the repayments.
At Star Loans, we believe that we offer the best home improvement loans in the UK! You can borrow from as little as £3,000 with maximum flexibility and minimum fuss - this is because you are coming direct to the lender. StarLoans is a loan company so you can ask us to change your monthly repayments, make an overpayment, request a settlement quotation or a further advance.
We will help you make the most of your home - it is your biggest asset. Remember, when you sell your house any gain is free of capital gains tax. Improving your home could therefore be a very wise investment.