4 Ways to Finance Home Improvements

 If you’re making some home improvements, have you considered getting online personal loans to spread the cost? Find out more here.


Home improvements are a great way to put your own personal stamp on your home, improve your quality of life, and can even add value to your home. They can range from a fresh lick of paint on the walls, new carpets or new furniture all the way up to building an extension, installing new windows and doors or updating your heating system. Unfortunately, home improvements can be expensive investments, and paying for them can be a challenge. Saving money can take time, and sometimes it’s best to keep a safety net for emergencies. This is why some people choose to apply for loans or take out a credit card to finance a home improvement project.

Here we look at some of the most common ways to finance a home improvement project. Not all will be right for your situation, but they may help you to narrow down your options.

1. Use your savings

Saving for a big purchase is something most people have to do at some point in their lives, whether it’s a new car or even a holiday. However, there are several reasons why you might want to consider using your savings for home improvements instead. The biggest reason is that you’re investing in something which could add real value to your home in the long run. You also won’t have to borrow money and pay interest rates. On the other hand, paying contractors in cash doesn’t afford you any purchase protection should the company close down or turn out to be unreliable.

2. Get a 0% purchase credit card

If your savings are tied up in a bond which means you can’t access the funds without incurring a charge, or you’re concerned about the lack of protection you have when paying in cash, a credit card could be a good option. A credit card with 0% interest on purchases for an agreed limit could provide the funds you need upfront in exchange for regular repayments. This means you can spread the cost of the project and, if the company were to go bust, you can often claim the money back from your provider. However, it’s important that you only take out a credit card which you can afford to pay back before the 0% offer rate ends of you may find yourself unable to keep up with interest payments.

3. Re-mortgage your home

If you’re extending your home by adding a conservatory or an extra bedroom you may be able to free up some of the equity in your home by re-mortgaging. This is a complex approach and not a decision to be made lightly as it will have a much longer term impact on your finances. You need to weigh up the financial commitment against the potential value you’ll be adding on to your home.

4. Take out a personal loan

For major home improvements such as extensions or conversions, you may need to borrow more than a credit card will be able to cover. In these situations, getting online personal loans helps many people to fund projects and spread the cost over years rather than months. You will need to pay interest on the loan and need to be sure you can afford the monthly payments. A good credit score will give you access to the best interest rates.



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