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3 Ways to Fund Your Home Improvements

21 July 2023

Home improvements can transform your living space and add value to your property. Whether you’re dreaming of a luxurious new bathroom or sprucing up your living room, having enough funds to finance these projects is essential. If you don’t have the cash readily available, don’t fret! In this blog, we’ll explore three creative ways to raise money for your home improvements, including home improvement loans, remortgaging to raise capital, and considering equity release. Let’s dive in!

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  1. Home Improvement Loans: Accessing Extra Cash for Your Dream Projects

When your savings aren’t sufficient to cover your desired home improvements, home improvement loans can come to the rescue. These loans are specifically designed to fund renovation projects and are available from various lenders, including banks, credit unions, and online financial institutions.

The first step in obtaining a home improvement loan is to assess your credit score and credit rating. A good credit score enhances your chances of securing a loan with favourable terms, such as lower interest rates and more flexible repayment options. If your credit score is not where you want it to be, consider taking some time to improve it before applying for the loan.

Home improvement loans offer the convenience of receiving a lump sum, allowing you to tackle your renovation projects promptly. Additionally, they are typically unsecured loans, meaning you won’t need to put up your home or other assets as collateral. However, it’s essential to calculate the loan amount carefully to ensure you can comfortably manage the repayments without straining your finances.

  1. Remortgage to Raise Capital: Unlocking Hidden Potential in Your Home

If you’ve built up enough equity in your property over the years, remortgaging to raise capital can be an excellent way to access additional funds for your home improvements. Equity is the difference between your property’s current value and the outstanding mortgage balance.

Remortgaging involves switching your existing mortgage to a new lender or negotiating a new deal with your current lender. By doing so, you can release a lump sum of money based on the increased value of your property, allowing you to finance your renovation projects.

Before considering remortgaging, seek financial advice from a qualified mortgage advisor to assess whether your financial situation is suitable for this option. Keep in mind that remortgaging may come with certain costs, such as arrangement fees, legal fees, and valuation fees. However, the potential benefits of accessing a larger sum of money at a competitive interest rate might outweigh the expenses in the long run.

  1. Equity Release: A Flexible Solution for Homeowners Over 55

If you’re a homeowner aged 55 or older and in need of funds for home improvements, equity release might be a viable option for you. Equity release allows you to access the value tied up in your property without the need to move out or make regular repayments.

There are two primary types of equity release: lifetime mortgages and home reversion plans. With a lifetime mortgage, you borrow against the value of your property and retain ownership. The loan, plus interest, is repaid when you pass away or move into long-term care. Home reversion plans, on the other hand, involve selling a portion or all of your property to a provider while retaining the right to live there rent-free until you pass away or move into long-term care.

Equity release can be a flexible solution for those looking to raise money for home improvements without taking on regular repayments. However, it’s crucial to consider the long-term impact on your estate and seek independent financial advice to ensure it’s the right option for you.

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Home improvements can add significant value and comfort to your property, but funding these projects might seem challenging at first. However, with the right approach and a bit of creativity, you can achieve your renovation dreams.

Home improvement loans offer a straightforward way to access extra cash, while remortgaging for capital raising can unlock hidden potential in your home. For homeowners over 55, equity release provides a flexible solution to fund improvements without regular repayments.

Before making any decisions, it’s essential to assess your financial situation, credit score, and equity carefully. Seeking professional financial advice will help you make an informed choice that suits your needs and ensures you embark on your home improvement journey confidently. Remember, with the right financing, your dream bathroom or revamped living room is within reach!

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The Hudson Rose team are here to help with all your fund-raising needs! It’s always worth a quick no-obligation chat to make sure that you are on the right track with raising the funds for your next home improvement project. Get in touch or book an appointment to chat to one of our experienced advisors today!

 

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YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.

Hudson Rose Services Ltd is an Appointed Representative of Stonebridge Mortgage Solutions Ltd, which is authorised and regulated by the Financial Conduct Authority.
Hudson Rose Services Ltd, trading as Hudson Rose. Registered Office: 7 Bridge Street, Nailsworth, Stroud, GL6 0AA
Registered Company Number: 11008147 Registered in England. FCA 799302

Hudson Rose Services Cirencester Ltd, trading as Hudson Rose. Registered Office: 78 Dyer Street, Cirencester GL7 2PF Registered Company Number: 13349772 Registered in England

There may be a fee for arranging a mortgage and the precise amount will depend on your circumstances. This will typically be £499. There is no charge for any initial consultation.

Your Home may be Repossessed if you do not keep up repayments on a mortgage or any other debt secured on it. Not all forms of Property Development Finance are regulated by the Financial Conduct Authority

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