If home improvements are on the horizon for you in the next few months or years, then it’s important to figure out exactly how you’re going to pay for them. Many home improvement projects don’t come cheap, so before you get started, it’s important to carefully consider how you are going to pay for them. We’ll take a look at some of the options that are available to help you determine which one is the best route for you to take.
Using Your Savings
Ideally, you should always try and use savings as much as possible rather than borrowing money to make improvements on your home. Not only will you be able to avoid committing to making repayments for months or years afterwards – you’ll also be making an investment in your property. The right improvements can exponentially increase the value of your home – a modern bathroom could increase value by 3%, while a modern kitchen can add 5%, for example. So, if you have savings to hand, using them to fund your home could be the most sensible option.
If you need to borrow money to pay for some or all of your home refurbishment, a credit card can be a very useful option, providing that you use it wisely, and that the credit limit you have meets your requirements. One of the advantages of improving your home using a credit card is that if you end up dealing with faulty work or work that never gets completed by the contractor, you will be able to claim the money back from your credit card provider, whether you have paid the amount in full or paid a deposit.
If you are considering making major improvements to your home, like adding a conservatory or converting the garage or loft, then you could easily be looking at spending over £10,000 – in which case, using a credit card is probably not going to be an option. The good news is that personal loan rates have remained competitive over the past few years, but taking out a loan should still be a decision that is taken lightly. Whether you’re looking at short-term payday loans to cover a small home improvement expense or want to borrow more for a larger refurbishment project, it’s important that you have a plan in place to ensure you make repayments on time, and are sure that you’re going to be able to afford to repay the amount borrowed.
Using Your Home
If you’re planning on making major refurbishments to your home, then it might be worth approaching your mortgage lender to see whether you would be able to get a further advance to free up some cash. However, bear in mind that borrowing extra money against the value of your home is never a decision that should be taken lightly; carefully consider your options because the additional funds may not be offered at the same rate as the rest of your mortgage, and may even mean that you are tied in for a certain time period.
Which payment option is best for your home improvement needs?