Planning a spring renovation project? If you’re exploring ways to fund a home revamp then this post is for you!
Spring is traditionally a good season of the year to start home renovation projects, both indoors and outdoors.
Investing in your home by painting a tired looking room or updating an old bathroom can not only give your home a facelift, but it can also improve the value of your property when it is time to sell.
On the flip side, any home renovation project also costs money. Although sourcing funds to finance your projects can become quite challenging, there are clever ways to go about it without putting yourself in a bind.
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So, in this collaborative post, here are three clever ways to fund your spring renovation project.
3 clever ways to fund your spring renovation project
Savings or cash
Ideally, using cash is the smartest way to pay for a renovation. If you have money stashed away, this could finance your remodelling project. However, touching your rainy-day fund is a big risk because if anything happens, you cannot rely on the money to pay for emergencies. Hence, although using up your savings sounds tempting to pay for a paint job, it might be more prudent to leave it untouched and look for an alternative source. In addition, a bigger remodel might completely drain your savings making it important to look for another financing scheme.
Personal loan
For small-scale and simple renovations, you could consider availing a personal loan. You can borrow up to £25,000 without any collateral although unsecured loans have a slightly higher annual percentage rate (APR). They are suitable for medium-sized projects such as a new kitchen or room redesign. If all you need is a 200 pound loan click here. These short-term loans are appropriate for small or DIY projects where you only need to buy a few materials like paint, varnish, or wood. Upgrading your kitchen taps or installing a new bathroom cabinet can also be done easily with these amounts of loan.
Home mortgage renovation loan
Bigger renovation projects such as building an extension or a conservatory will entail a larger amount of money. Consider approaching your mortgage lender to see if you can borrow against the value of your home. Be aware that borrowing against the value of your property needs considerable thought. One disadvantage is that the money may not be offered at the same rate as your mortgage and the repayment period can also be different. Another factor to consider is that your house can be repossessed if you fail to meet payments on time. With a secured loan, your property is put up as a collateral that the lending institution can confiscate in case of a loan default. In general, you can borrow between £10,000 to £100,000 with a secured loan. How much equity you own in your home is a factor that will affect the amounts that you can borrow.
Home renovations are not cheap, so it is wise to carefully think about how to pay for them. Weigh your options in detail and see to it that you can, indeed, afford to pay back secured or unsecured loans. Avoid using up all your savings as having no rainy-day fund is equally risky and dangerous if the unexpected happens.
This is a collaborative post.
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