Ideas and Guide For Home Improvement Loans
There is no doubt that when a property ages, there would be a need to renovate it. However, renovation is quite expensive and more often than not it would call for taking home improvement loans. The conventional home loan lenders will only lend against properties that are in good condition or in a habitable state. Hence, if you are looking to renovate homes then you may have to approach a different route altogether. There are home renovation lenders whom you may have to approach or you may have to look for some unsecured loans for getting the job done.
How To Get Started
One of the biggest challenges for many customers is to find out avenues for such home improvement loans. For first-timers lack of knowledge and information could be the biggest stumbling block. Hence the first thing you should do is to be doubly sure whether you can get a loan for such renovations and if so what will be your loan amount. There are special groups of lenders who are ready to fund for such renovation costs, but in most cases, it might not cover the full estimate that you might have.
As far as the loan amount is concerned, it will be based on the income that you earn. Lenders usually calculate the renovation loan amounts on multiples of your income. They also take into account the incomes of spouse and other blood relations. They will also carefully examine your disposable income after paying off all loan commitments and then decide on the loan amount. While the going might be easy for salaried persons, self-employed people might find the going tough. Those who suffer from bad or impaired credit history may also not be able to get such loans.
There are many purposes for which home improvements are entertained by lenders and here are a few of them:
Home Extensions: There is no doubt that home extensions are the most common reason why such improvement loans are sought by customers. It is all about making some alterations to the home without structurally changing the home.
Loft And Garage Conversions: Over a period of time it is quite likely that you may like to convert your loft and use it for some other purposes. In the same light, you might find it useful to convert your garage by making it bigger or adding some new features to it.
Refurbishments: Refurbishing is another need for which you could require loans. A refurbishment is nothing but making some repairs or renewals or adding some new fixtures and fittings without making any structural changes.
Conservatories: Many modern homes have conservatories which are nothing but special enclosed places which is used as a greenhouse or as a sunroom. Many lenders do not mind lending for such new additions to the home as long as it does not require structural changes.
Sunrooms, Orangeries And Glass Extensions: These are perhaps almost the same as conservatories and the main aim is to make the home clean and green.
Some Useful Borrowing Tips
Now that we have a reasonably big list of requirements where loans are possible, let us try and get to know some common borrowing tips:
- Never place the cart before the horse. It would be wrong to start the renovations without having the loan in place. You will end up in a catch 22 situation not knowing what to do.
- Research and take information before you actually sign on the dotted line. You must spend some quality time looking up at least seven to ten lenders so that you have all the information pertaining to the loan amount, interest rates, repayment period, and other such matters.
- It is also important to have some funds of your own available for the purpose. You should not totally depend on lenders because you will more often than not overshoot your estimate.
- You should also keep in hand some alternate sources of borrowing. In spite of getting home improvement loans you might have to borrow additionally by way of personal loans, credit card the key is always sensible borrowing.
Conclusion: At the end of the day while home improvement is a must, it is important for the borrower to go through the various due diligence process and only then take the next step.
We cover the Bucks, Berks, Oxford, Northants and Bedfordshire areas
For all your home extension needs, feel free to call us on 08000 588260 or visit our website www.pristinebuild.co.uk