Friday - Dec 15, 2017

How You Can Finance Home Renovations


So your home is a looking a little dull, the walls are cracking and you just are not happy with the way it looks. Unfortunately, a quick change of paint will not give it the life that it is clearly needs. This where you will need a complete home renovation, you know this will take a lot of work, but with proper professionals and the right planning, it will look great.

The only problem that you will have now is; how will you afford it? Apart from the construction, this is one factor that can hold people back from giving their homes a makeover. Getting finances together to make this dream come true can be difficult, but in no way impossible.

Below are some suggestions that can help you with financing to your home renovation.

Renovation loans

A lender will be able to offer you 80-85% of the property value, but may withhold some funds (known as property retention) pending the completion of the essential repairs.  To help regulate what work is needed, a surveyor will inspect the property and indicate any necessary work needed.

However, until the retention money is released, you may have to find alternative means to fund repair work.

Equity

If you currently have a mortgage, releasing some equity from it is a common means of financing renovations and repairs. To use the built up equity, a mortgage holder may ask the lender for more funds, or remortgage with another lender. A downside to this is that it can extend the length of the mortgage and payments, but it will free up cash that can be used to pay for renovations.

Grants

A local authority can offer a grant to help finance home repairs for those who live in the area. They are given grants for homes in urgent need of repairs or to improve energy consumption and insulation. A grant can be provided through means testing, which means that you will have to prove the repairs and renovations are required. Contact a local government authority to find out more.

Personal loans

A much more common option to finance home repairs and renovations. They are easily available, depending on your credit score and are obtained through banks, credit unions or private lenders.The amount can be discussed as well as repayment dates and interest rates.

Payday loans and online borrowing can be used to cover a deposit in the event of buying a property before renovation. Some financial companies can provide instant loans, so you can get started instantly. For any home renovation, it is advised to seek professional estimates that will indicate the total amount needed to complete renovations.

This will give you an idea of what method of finance is suitable, as all options mentioned can supply large amounts, but shopping around for the best deals is important. Along with this, look for specialist advice for the best option and deals that will prevent from putting you in further debt. With a bit of research and hard work, you can get your home looking stunning in no time!

By Harry Price

Harry Price is a talented freelance writer who enjoy in his spare time enjoys travelling to remote locations to absorb different cultures and experiences.