Looking for a Home Improvement Loan?
Planning a little light decorating, becoming energy efficient and upgrading your central heating or windows? Adding that extra space with a loft extension or wrap around extension? Whether you are looking to create a more beautiful home or making improvements for selling, home improvement loans can help fund your plans. Typically, home improvement loans are a type of unsecured personal loan. As with any loan, you borrow the money and agree to pay it back, plus interest. This has the advantage that you don’t risk losing your assets if you can’t keep up with the repayments.
How do Home Improvement Loans Work?
The amount of home improvement loan you are allowed to borrow and the amount of interest you’ll have to repay on your loan will depend on questions like:
Is the loan be unsecured or secured?
How good is your credit rating?
How much do you want to borrow?
When do you want to pay it back?
An unsecured home improvement loan is money you take out intending to use for home improvements. You can compare home improvement loans through our Get My Rates application form. Money ID compares loans up to £25,000 and the amount you are offered will be based on your circumstances.
Rather than paying the loan off over one to five years like a standard personal loan. Some specific home improvement loans might be able to stretch payments over anywhere up to 10 years. Paying a loan back over a long time could make the debt more affordable. It shrinks the size of the monthly repayments. However, you will pay much more interest in total than if you made higher payments over a shorter time. Just make sure you would be able to afford the monthly repayments.
What are the Disadvantages of Home Improvement Loans?
Things to be aware of when you are thinking about taking out a home improvement loan include High variable interest rates on your monthly repayments for an unsecured personal loan.
Home Improvement Loan Terms
You can begin your home improvement work when you are ready. Your interest rate will be fixed with a secured home improvement loan, helping you to budget your monthly repayments for the loan term. You can choose how long you want to be paying your loan back to help fix your monthly repayments at an amount that works for you. Loan terms are available from 1- 5 years and longer. You might be able to borrow more money upfront for a home improvement loan than with a credit card or mortgage increase. Your lender may be able to do this on an unsecured loan too but it is more difficult for them to do so. You may have to pay an arrangement to get your home improvement loan or early repayment fees (redemption fees) if you want to pay off the balance quicker.
Difficulties Getting Home Improvement Loans
If you have bad credit or you are self-employed you might find it difficult to get approval for an unsecured home improvement loan. The APR interest rate that is charged will depend on an individual’s circumstances. APR interest is usually between 3.2% and 99.9%. A representative example of what it may cost would be; A Loan of £7,500 over 60 months at 3.3% APR would equate to monthly repayments of £135.60. The total cost of the loan that you pay back would be £8,136.22. Personal loan deals, just like those available on other financial products such as credit cards and bank accounts, vary widely.
But securing the best terms and lowest interest rate possible can make a massive difference to the amount you repay. So it makes sense to shop around. You can do this quickly and easily by using the Money ID Get My Rates application form. Compare hundreds of different loans from a wide range of lenders. The Get My Rates tool can speed up the process of finding the best deals for your circumstances. Please note that Money ID is a credit broker, not a lender. That means we don’t provide credit to you, but we can make your search for the perfect lender and suitable loan much easier. By helping you compare your offers all in one place. Please note that decisions are not made by Money ID and are made by the lender. Agreements for loans are between the lender and the customer and not Money ID.