What can I use a home improvement loan for?

Home improvement loans can be used for a large range of purposes with the objective of, as the name suggest, improving your home. Typically a home improvement loan would be used for major work on a house such as an extension to a current home or converting roof space into a livable area. Such work as kitchen or bathroom renovations can also incur large costs and would be suitable purposes for a home improvement loan.

If the work to be carried out is on a building that isn't currently occupied then sometimes the funds of the loan will be issued in stages to check on the progress of the work. With the loan being secured on the property it is naturally within the lenders interest that the property has a specific worth. Sometimes loan lenders will insist on seeing details of the work that is too be carried out but this can be dependant on the specific lender that your application is placed with.

As you can imagine there are many more purposes a home improvement loan could be used for and they could include double glazing, a new roof, conservatory or a complete overhaul of a garden. It is a very good idea to investigate the possible cost of the work before taking a home improvement loan so that you ensure that you have enough money to complete the job. Adding a safety buffer as well would be recommended as often work can cost more than originally thought.

Why a secured loan for home improvements?

There are a number of reasons why a secured loan could be the right choice when looking on how to fund your home improvement work. Home improvements can be quite expensive and when looking at unsecured loans the maximum is normally around £20,000. To get a loan of a higher amount a lender will want the security of your home, much the same as a mortgage lender does, to be able to offer you higher amounts.

You may be thinking that you can change or extend your mortgage instead of getting a secured loan and this could be an option that's sensible. However, there are many homeowners who have a mortgage that cannot be added to or altered without a penalty. Therefore, even though a secured loan rate is higher than a mortgage rate it is a more sensible option due to potential penalties on the mortgage. Another reason is the ability to have a different loan term (the length of time the loan is taken over) on the secured loan vs your mortgage - you may want the secured loan over a shorter time to clear it earlier.

If you have had problems with your credit history then a secured loan can often be a better option as they can be a lot more flexible than unsecured loan lenders. Sometimes missed or late payments on credit can mean that an unsecured loan lender will decline your application where as a secured loan lender may not. If you are self-employed a secured loan can also be a better option than unsecured due to the higher chance of approval.

As you can appreciate there are a lot of things to consider but a secured loan can potentially offer you higher loan amounts and possibly a better chance of approval but everyone has different circumstances so make sure you do your own research. At gosecuredloans.co.uk we are independent so can search the UK secured loan market to try and find the best deal that we can for you.