With more people than ever deciding to improve their existing properties rather than move somewhere new, there’s a boom in home improvement works.
However, although home improvements are typically cheaper overall than moving house, that doesn’t mean you don’t still need a large sum of money to make big changes such as replacing the kitchen or bathroom, or building an extension.
So, how can you fund your larger home improvement projects and ensure that you don’t end up out of your depth financially? Money to the Masses recently made a few suggestions.
If you need to borrow a substantial amount of money, a home improvement loan could be your best option. The news provider noted that you can now take out these kinds of loans with interest as low as three per cent APR, so it’s worth considering. You’ll typically get the best rates if you’re borrowing between £5,000 and £25,000.
For smaller sums, you can think about using your credit card or a personal loan to fund the changes to your property, but you need to make sure you check the interest rates associated with any such financial product. One advantage to buying smaller items on a credit card is the additional protection you receive if your purchases are faulty.
To access really large sums of money, remortgaging or equity release schemes may be the best option open to you. Whether these are appropriate will depend on your personal circumstances, so seek professional advice before going down either route.
You may also want to consider whether you need to do a big renovation project, or if you could make a difference to your home by tackling smaller DIY products. Investing in surface repair supplies doesn’t cost too much and could allow you to fix things rather than buying new.
Last month, the Independent reported on a survey by Hiscox, which found that 15 per cent of homeowners are now happy to tackle DIY rather than move, compared to three per cent in 2013.