There’s always some sort of cost involved in home improvements and whether it’s just a few pounds on some tins of paint or many thousands for a double storey extension, one thing is clear – know how much you can afford before you start.
Nothing looks worse than an unfinished improvement project and you’ll either have to live with it, or do some good explaining to potential buyers. So it’s important to be clear at the outset about how much you are prepared to spend on the different aspects of your project and where the money is coming from. In an ideal world you’d set a budget for your project and stick to it, but in many cases, budgets overrun so you’d be wise to set aside a contingency fund (minimum of 10%), just in case.
Should you need to raise some finance from an outside source, there are a number of options you could explore. One of the most popular is to go for a further advance on your mortgage, which enables you to borrow money, secured on the value in your property (equity). But pay it off at a lower rate and over a longer period than most unsecured personal loans offer. Your existing mortgage lender should be able to provide you with details of its secured loans. You can also look at equity release as a possible source of finance for home improvements.
Your home may be repossessed if you do not keep up repayments on your mortgage.
Remember:
- Do your research – make sure you get at least three quotes from any tradesmen or contractors you may be thinking of using.
- Set your budget and do your best to stick to it.
