Whether you are having a home extension, a loft conversion or a refurbishment to your home you know that you have to spend a lot of money. Jeffery and Wilkes are London’s leading house renovation specialists.
As you are digging deeper into investigating the costs and what is involved you are seeing more things that you would like to add to your home and the costs are slowly creeping higher and higher. Now you are looking at your wants and needs and the budget you originally set aside and realise it is not enough. What can you do to raise some additional money to really get your perfect home?
The most popular choice for many is a re-mortgage. You can add the additional money you need to your mortgage and pay back during the length of time left on your mortgage. You are confident that your additional rooms could increase the value of your house by as much as 20% value, so you will be increasing your equity in the house by the additional space so for many this is a win/win situation. Also with borrowing rates at record lows putting the loan onto your mortgage will not greatly affect your monthly outgoings.
- 2. Unsecured loan
You could get an unsecured loan to make up the balance. The benefits of a unsecured loan is there is no risk to your home if you fail to make the payments back, you can pay back over a shorter period of time and you can normally get the funds pretty quickly if you are approved. The disadvantages in unsecured loans is the interest is normally higher as you are a higher risk to the banks
- 3. Secured loan
If you have been denied an unsecured loan you can try for a secured loan to your house and run it in line with your mortgage. You can get lower interest rates as it is less of a risks for banks to lend you the money. The risks with this is you are putting against your house therefore if you fall into financial trouble then your home is at risk.
- 4. 0% credit cards.
Whilst you won’t be able to make credit card payments for your main bill, you can purchase certain items by credit card or pay for additional extras with Jeffery & Wilkes later by credit card. If you pay your credit card off before the 0% period runs out then you will not pay any interest on this.
- 5. Last but by no means least, the bank of Mum and Dad.
No matter what age you reach if we are fortunate to have a Mum and Dad who have the funds to lend to us then this can be a great option with less worry.
So do not panic if you do not have all of the savings to create your ideal home there are still options to help you create the perfect home with the wow factor and if you plan it right you can actually be creating capital wealth whilst borrowing!
Talk to the experts at Jeffery & Wilkes to explore your options and what sort of return on investment might be possible for you. We can even put you in touch with lending experts.