If you are thinking of improving your home a secured home improvement loan could be for you.
With a secured loan you will have to put down property as security, it could be any valuable objects, such as home, car, saving accounts etc. The amount, offered with these loans is ranged from £ 5,000 to £ 75,000 and its repayment period varies from 5-25 years. But, normally the term of repayment period depends on the loan amount, income and the value of equity in the property.
You may think about how a secured home improvement loan could save your money? The answer is very simple, since these loans are secured on borrowers’ property, the risk of lending money becomes less and lenders do not hesitate to provide secured home improvement loans at lower interest rate. Hence, you can improve your home and at the same time save yourself cash.
There are many purposes a secured loan can be used for including;
1. Building an extension on your home.
2. Landscaping your garden.
3. Home repairs.
4. Refurnishing your home.
5. Building a garage.
Secured loans are also available for people with a bad credit history, like people with CCJ’s, IVA’s, bankruptcy, arrears, or default. Generally, getting any sort of loan is tougher for them, but they can easily apply for secured home improvement loans with no problem. As these loans are obtainable against security, thus lenders provide these loans to all kinds of borrowers.
At the same time, you should keep in your mind what would be the effect, if you could not repay the loan. Do not forget, you are using your property to get the loan. Thus, in case you cannot repay the amount then your security will be seized by the lender. So, always ask for the amount that you are able to repay off. And do check your financial capacity before going for a secured home improvement loan.
Secured home improvement loans are available against security and because of the security these loans are available at low interest rate. Therefore with these types of loan borrowers can improve their home and also save money.
Home Improvements Required? Get A Secured Loan
Home improvement usually takes a back seat due to lack of finances. If finances are an impediment, get a secured home improvement loan. Secured loans for home improvement are a way of increasing home equity which is one of the most important benefits. This implies not only will your home will be comfortable but also its market cost is increased.
The thought process while taking loans is almost always diverted towards lower interest rates. Lower interest rates are very often the main criteria when choosing a loan. But you must know that lower interest rates are not offered to anyone and everyone.
The most obvious reason for a lower interest rate being offered to you will be the fact that you are the homeowner. Secured home improvement loans are protected on borrower’s property and are dependent on the equity of the property. The property or home acts as the security for the loan and will therefore means you have to give lower interest rates.
APR is what gives you a general idea of what your secured home improvement loan will cost. Go to the local bank and building society to get a general idea of the loans rates. Your loan lender is the one who will give you a good idea about what will be the total cost of repayment. Look out for hidden costs while settling down on secured loans for home improvement.
The secured home improvement loan rate is usually fixed and would vary from lender to lender. So browsing through the net would perhaps lead you to the better loan rate than the ones you closed on. Interest rates are negotiable for they are quite dependent on individual circumstances. The actual deal on secured loans for home improvement depend upon credit history, salary, age, joint or single application, collateral, amount to be borrowed and length of payback period.
The loan amount on a secured home improvement loan will vary according to the property type. A single family house would guarantee maximum £25,000 to £75,000 as a loan amount. Don’t take more than you require on a secured home improvement loan. Don’t over improve your home because it might be difficult to recover the cost of improvement if the price tag of your house is more than other houses in the locality. The loan term on secured loans for home improvement are anywhere between 2 to 25 years.
A secured loan for home improvement that is less than £25,000 can be called off within a week with no obligation under the 1974 Consumer Credit Act. You can take payment protection to protect your payment against any change of circumstance. If you do not opt for payment protection and find you can’t pay your monthly payments, discuss your situation with your lender. However, a secured home improvement loan does put your property at risk in situation of non repayment.
Home improvement loans are oft quoted with high rates. This is usually the reason for putting off home improvement. Living in a house that needs repairs is not always a pleasant situation. So, home improvement becomes a very irresolute condition. Make home improvement easy with a secured home improvement loan.