How to make the home improvements you want, without having to break that bank balance.
Improving your home is a great way to upgrade your quality of life. The last few years have been tough, but they have shown us the importance of a good quality of home life. This triggered the 2020 pandemic housing boom in the UK, and it’s still having a rippling effect now[i].
With the government now announcing the arrival of yet another new variant of the Covid disease, it stands to reason that more of us are worried about another lockdown. What does another lockdown mean for all we homeowners? It means another few weeks or months stuck at home with nobody to talk to but our families.
What are we getting at? If there was ever a time to look at upgrading your home, it was now.
How to Fund New Home Improvements
Before we all rush off and list our houses on the property market, let’s talk about whether we really need to move. You see, adding a room, renovating an old home, or remodelling a floor of your house, are all great ways to get that new-home feeling, without all the extra stress of a house move.
If you have just had a new child, for example, a room addition means you get the space you need without the stress of that move. They say moving is one of the top traumatic things you will experience in your life, so if we can, we should try to keep it to a minimum.
The problem with renovating instead of buying a new home altogether, is worrying about how you are going to pay for it all. Renovations, refurbishments, and remodels of UK homes don’t come cheaply. However, there are ways you can pay for your home’s new improvements without busting the bank. Here are a few of our favourite ways to pay for your new upgrades.
Financial Products for Home Improvements
There are lots of ways you can pay for your upgrades, but here are some of the best.
1 – the HELOC
The UK is now home to a company which provides a HELOC. The company are called Selina Advance and the product they offer is an innovative way to borrow to fix up your home. The Home Equity Line of Credit allows you to borrow up to 80% of our home’s value, less what you still owe on the mortgage. This lets you take out a lump sum which you only pay a product fee for and interest on what you borrow. A HELOC is excellent if you think you might need to borrow more down the line.
2 – The Homeowner’s Loan
As simple as it is described as, a homeowner’s loan lets you borrow money since you have repaid your mortgage or are in the stages of repaying. It also allows you to use your home as collateral, but in a way where the lender can claim back from your mortgage.
3 – Standard Loan
Taking out a standard loan is the priciest solution of the three options since it is not tailored specifically for this purpose. Nevertheless, it could still pay for the cost of your home upgrades and give you better ROI when you choose to sell your house.
[i] https://www.theguardian.com/commentisfree/2021/jul/02/housing-bubble-birst-uk-gdp-house-prices-interest-rates-economy