Financing Your Home Improvements
You might have a great idea of how you want to improve your property, but you don't have the funds available immediately. If you have the ability make regular repayments, then a loan or other finance package might be of benefit. These provide you with the option to have the work done sooner, but you need to consider all aspects of taking out the credit and whether or not you can afford it.
Research the Market
There is a wide range of finance options open to you, so it's important to know exactly what's available. Look at all the different products, and if you need advice or help understanding the market, then you should speak to an independent financial adviser. You shouldn't just look at the basic aspects of the finance package, as you need to work out what the total costs of each one would be. Consider all the charges, the interest rate and how long you'll be repaying it for. Only when you've got a clear picture can you make a direct comparison between different products. If you might be able to repay the loan early, will you be charged a penalty for doing so? Even if you can easily afford the repayments now, a small change in your health or job status could cause issues. Therefore you should think about taking out insurance to cover you against sickness or unemployment.
There's the option to go direct to a bank or other financial institution for a loan. However, some of the companies which do home improvements also offer their own packages. This might be a more convenient option, but it's important to check that it won't end up costing you considerably more this way. Look through all the small print to see who the loan would actually be taken out with and what the final cost of the loan is.
Credit cards can be a quick way of getting access to the money you need. However, they're only really of benefit if you can borrow at 0% and are able to repay the balance before the promotional period ends. Otherwise, this is an extremely expensive way of financing your home improvements.
Whatever form of home improvements you're considering, from a balcony with a wrought iron fence to a full extension, it's important to consider how you'll be able to afford the work. In many instances you'll actually be able to recoup the money and more when you come to sell the property.