Home renovations are often said to be far cheaper and easier than moving into a new home. I’m not sure I’d agree with those thoughts entirely – after all, have you seen how much it costs to get building work these days? And, I know people who have been living elsewhere for months while their home is redecorated.
That said, there is merit there, somewhere. Once you have a home, it’s much easier to find money from lenders than it is without – and that’s what I’m going to look at today. So, if you have ever wondered what the best way of funding your next home renovation is, read on and I will tell you all you need to know.
Use your home
First of all, think about using your home as equity for funding your renovation. It’s not something you should throw yourself into, but as a homeowner, you should be able to get better interest rates than most. There are some different ways you can free up cash. The first is familiar enough – remortgage your home. Another traditional method is to use equity release schemes. Many older people use these to pay for home renovations, and they can be straightforward to get through if your home is of particular value.
Get a 0% credit card
0% credit card deals are trickier to get these days, but if you’re a homeowner, you should have plenty of choices. They will run for a set period – usually between 12 and 18 months when all purchases come interest-free. So, you can pay for your renovations now, and slowly pay off the credit over the period. Just make sure it’s back down to zero by the end of the term. Do that, and you get an interest-free loan – which is not to be sniffed at in this day and age!
Raid your savings
Of course, if you have savings put away, then why not use them to do up your home? The primary benefit of doing so is because you are making an investment. As long as you concentrate on the areas of the house that increase your home’s value, then it’s worth thinking about. For example, if you fit in a new kitchen, you could end up boosting your home’s value by anything up to 5%. For the sake of a few grand out of your savings account, that could be a shrewd move indeed.
Standard loans
As we have already said, as a homeowner, you have a reasonable amount of power when it comes to borrowing money. So, a conventional loan should get you some good interest rates, assuming you have a squeaky-clean credit rating. Secured loans tend to be cheaper – but they do come with a whopping great issue. If you end up in a situation where you can’t pay the loan back, your home could be at risk. Unsecured loans won’t be as cheap, but they are a safer option. And, if you have an excellent credit score, there are still plenty of good deals out there.
Do you have any more ideas to add? Why not let everyone know in the comments section below?