Home Equity Loans

Due to high home prices, high stamp duty fees, and a general lack of available properties, many homeowners decide to make improvements to their current homes rather than move. Your home can feel new by giving its inside a fresh coat of paint, remodelling your kitchen, or extending. The best ways to raise money for house improvements are listed below.

The simplest method to pay for house improvements is with your own savings, which is a more prudent choice than buying a holiday or a new car. Depending on their type, home upgrades could raise the value of your home by more than 10%.

Applying for a credit card could be a strategy to finance your restoration project if you only require a small sum. Some financial organisations provide credit cards with 0% interest that you can pay off in a predetermined number of months.

It’s not always a case of needing a new job or a higher salary to be able to improve your finances. For many people, it’s a case of just looking to manage your money better. Even if you feel there is no hope with your finances and there is no way of putting it right there are a number of things you can do.

Start by tracking your spending. If you don’t know where your money is going each month then there will be room for improvement. Categorise each of your spends so that you can identify those non-essential expenses. 

Create a realistic monthly budget. Use what you’ve discovered by tracking your spending to create a budget that works for you and your lifestyle. No point in going cold turkey with your spending needs and making drastic changes that won’t be sustainable and that will make you miserable. You’re looking to make improvements after all.

Is your home in desperate need of renovation and you simply do not have the savings to fund it? One option you can try is getting a Home Improvement Loan. Planning on getting a big loan can be scary, but you can start with a few simple steps.

1. Research- do a bit of research to see the typical cost ranges for the type of renovation you are looking for

2. Estimate- come up with an estimate to the amount you would need, and add about 10% more, just to be on the safe side

3. Credit- evaluate your credit score and history to assess whether or not you would qualify for the loan that you need

4. Home Equity- sometimes you will need to know the equity of your home as lenders may want this information

5. Shop Around- do not settle for the first loan you come across, look at several to get the best one

6. Choose and Apply- choose a loan that will work best for you and apply

By using these tips, you will be very well set up to getting the Home Improvement Loan you need.

If you have heard about there being a new mortgage scheme announced with the 2021 UK Budget and are wondering what it means for you, then you may feel quite excited by the details. This new government-backed mortgage scheme has been put into place to help first time home buyers or current homeowners secure a mortgage with only a 5% deposit! The release of this scheme was on the 19th of April and will be in place as a temporary measure until December 2022.

With home ownership demands immense increase since 2020, the government is trying to help the dream of owning a home a reality. Statistics show that over two-thirds of private renters and those living at home want to buy and are starting to save up to make that happen.

Owning your own home is an incredible personal and life achievement that hopefully many more will now be able to experience with this onset of this government-backed mortgage scheme.

Home Equity Loans allow you to borrow/raise money, against the ‘equity’ of your home without having to sell it. Equity is the difference between the saleable value of your home and the amount left on the loan you have against it. For example, if your property is valued at £150,000 and you have £50,000 left to pay on your mortgage, the equity is £100,000. If your home is paid off, then the equity would be £150,000. So, equity is basically what has already been paid for the property.

A home equity loan, also known as a homeowner loan, is secured against the value of your home and is often used to consolidate debts or buy a car. An alternative is home mortgage refinancing, where you usually increase you mortgage, taking all or some of the extra borrowed cash. You should be cautious when securing additional debt against your home as it could be repossessed if you do not keep up the payments.

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