Home improvement loans are used to invest in a property with the goal of increasing its value, and have become popular as an alternative to moving house.
How can I add value to my house?
1. Build an extension
Not only does an extension improve the quality of living for the occupants in terms of extra space, but an extended kitchen or additional bedroom can also increase the monetary value of a home.
2. Invest in a loft or basement conversion
Maximising the available space is a key approach to increasing the value of your home. A home improvement loan can be spent on transforming a loft or basement into an additional bedroom or lounge area. This is especially valuable in areas where space is at a premium.
3. Replace windows with double-glazing
A home improvement loan spent on double-glazing will not only increase the desirability of the property, but the increased energy efficiency will reduce your monthly heating bills.
4. Add a conservatory
Perhaps one of the most popular of home improvements is the addition of a conservatory or orangery. As well as creating additional living space and the opportunity to enjoy the garden whatever the weather, a conservatory is expected to add around 7% to the market value of a property.
5. Install a decking area
Investing in a stylish decking area can raise the desirability and therefore the value of a property by creating an additional entertaining space outdoors.
Decorating a property keeps the interior fresh and well maintained so that when the time comes to sell, the property is desirable to potential buyers.
How to fund home improvements
Home improvement loans
A home improvement loan can be used to invest in a property with the goal of increasing its value, and have become popular as an alternative to moving house.
A secured loan for home improvements is usually taken out for larger amounts of credit, which can then be repaid over a longer repayment term.
Some decide to fund their home improvements by releasing equity from their home. This is done by switching the mortgage to a higher amount of borrowing, and then using this capital to invest back into the house. When the right home improvement loan for you has been found and accepted, you can then look for tradesmen to help you with the job.