Enhance Home Value through Secured Home Improvement Loan

Your home requires improvement works now after it has serve to your comfort for long. And of course you would like to finish the improvement works at low cost. Secured home improvement loan is therefore what you are looking for if you require loan for the works to be done. Through secured home improvement loan, you can add a room or enlarge one, you can make your whole home look like of a modern designed or simply you can make your kitchen technologically best suited and so on. What is more, the loan enables you in enhancing value and equity of your home as you complete the improvement works.

Secured home improvement loan is provided against your home. The advantage of secured home improvement loan is its lower interest rate and larger repayment duration of say 25- 30 years. This means that while you have finished the improvement works, you can spread the lower interest rate loan into number of installments so that monthly outgo towards the loan installments gets reduced. And so secured home improvement loan is seldom a repayment burden on the borrower.

Under secured home improvement loan, you are entitled to borrow anywhere from £5000 to £75000 depending on your repaying capacity represented by annual income. Good credit is always an added benefit in taking the loan at reduced interest rate. But since you have put your home at stake with the lender as collateral, your bad credit is not at all an impediment in taking the loan. However the lender may sell your home in case you default on the loan payments.

Compare different secured home improvement loan providers for individual interest rates and settle for a suitable lender. Make sure to pay off the loan installments regularly for enhancing your credit score along with increasing your home value.

Unsecured Home Improvement Loan – Give A New Look To Your Home

If you want to give a new look to your home, then an unsecured home improvement loan is the option to be analysed. This loan alternative is meant for small home improvement works like kitchen upgrades, bathroom fittings, new furniture, wooden floors, garden landscaping, etc. and lenders usually approve up to £25000.
An unsecured home improvement loan is very popular for its no collateral feature. Significance of collateral in the loan bazaar is clear. However, this loan ensures that collateral alone is not the deciding factor, as there are times when either it is not possible or it is not required.

The most positive aspect of no collateral obligation is that the turn around time is less, i.e., in the absence of time-consuming property evaluation procedure, the loan approval time is much less. This makes the entire procedure fast and comfy.

Hence, an unsecured home improvement loan is ideal for:

  • A tenant – when he has nothing significant to pledge
  • A homeowner or property owner – when he is not willing to risk his asset
  • An urgent need – when time matters
  • A temporary and small monetary need – when security is not required

Another positive aspect of absence of collateral is that in case of repeated defaults or non-repayment of the borrowed amount, there is no immediate risk to the defaulter’s valued item(s) and the County Court Judgement (CCJ) is the only way to resolve the issue.
However, no loan type is without a catch or entirely safe. The only critical aspects of unsecured home improvement loans are that they are usually available at high APR’s and inflexible payback terms and conditions.

Though property assessment is not a part of an unsecured home improvement deal, the lender does evaluate the loan seeker’s credit history and DTI ratio to make sure that he will get his money back.

Financing Options For Energy Efficient Home Improvements

Installing proper insulation, high efficiency heating and cooling systems, and energy-efficient windows can lower your utility bills by 10 to 50 percent. But it can be costly to make these improvements and the savings will accumulate over time. There is an excellent chance that you will have to finance some of your renovation expenses.

Options for Financing Energy Efficient Home Improvements

There are a lot of people who are interested in helping you make energy efficiency improvements to your home – your banker and the government among them. They have good reasons.

An Energy Efficient Home Will:

* Consume fewer fossil fuels

* Reduce environmental pollution due to excessive fuel consumption

* Reduce the demand on public utilities

* Reduce the operating costs for the home

* Improve the market value of the home

The government is concerned with the use and impact of fossil fuels along with the strain on public utilities. It is in their interests to promote conservation and efficiency. Some utility companies are under mandates to encourage efficiency to allow them to serve more customers without building bigger delivery systems.

Your banker knows that a home that costs less to operate is more attractive to buyers and will likely command a higher price. It is a good business choice to loan money for projects that will increase the value of your home.

There are also private organizations committed to promoting the efficient use of natural resources who help offset the costs of improvements as a means of encouraging efficient energy usage.

Where To Look for Financing

The first steps to finding money to finance your energy efficient home improvement project are to research the various government, banking, and non-profit institutions that offer home improvement loans and grants. Check their guidelines to determine if you qualify. Also contact the manufacturers of energy efficient heating and cooling equipment. They may offer incentives to encourage adoption of new technology.

Write up a detailed list of the improvements you intend to make. If possible, get estimates of the costs of these changes and an estimate of the reduction in operating expenses you anticipate as a result of the changes.

With your information in hand, contact the funding sources you identified. If they cannot help you, ask them for a referral to a program or institution that they think might be able to help.

A little persistence will lead you to the money you need to complete your home improvement project.