Whether it is to add a spacious kitchen or bathroom or to have a conservatory or garage to your home–any type of renovation adds to the market value of home. But renovation is not a cheap process. One way of paying for these improvements, you should take the help of loans available in the loan market for renovation purpose. The renovation purpose can be for virtually anything related to the home from as little as redecorating a room to building a 2-storey extension.
Two types of loans are available in the UK loan market for home renovation purpose. The first one is the secured loan plan where your house is pledged as the security against the loan amount and the second is the unsecured loan. With a secured loan plan you will (usually) get a lower rate of interest and a higher amount of money. This loan is easier to get,even if you have bad credit problems. The reason is that there is least risk on lender’s side. But the problem is that, if you don’t keep up the payments on the loan they could repossess your house to get back their invested amount.
How could you know which home improvement loan is the best deal for you? Although the actual deal that you get with a lender will depend upon your personal and financial circumstances (credit history, salary, age, joint or single application, security pledging capacity, loan amount and length of payback period) a good guide for the cheap loan deal is the typical APR (Annual Percentage Rate) that the lender quotes on the loan application form.
You can get free quotes on home improvement loans from your local bank and building society branches. By comparing them you can get details of the best rates available in the loan market. Another option is to search on the internet for home improvement loan comparison to find websites that automatically list the best loan deals of the day. The facility of online search enables the client to save a lot of time and money. Ask the lender about the total cost of repayment of the home improvement loan. In this way any additional ‘hidden’ charges can be avoided and your loan deal becomes cheap.
Unsecured loans for homeowners are suitable for you when you are looking for small scale renovation purpose. They offer you risk-free borrowing options. You are free from repossession risk. The rate of interest is slightly higher in this case but the loan processing is fast and hassle free.