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If only you could get that conservatory built, a new kitchen or extension. Don’t worry; there are ways of finding the funds!
The TV schedules are packed with home improvement shows, property redevelopment schemes, redecorating and refurbishing tips – you can’t channel surf without wallpaper and colour schemes flashing before your eyes.
And it’s hard not to be drawn in by the idea of a new kitchen, a revamped bedroom or converting the attic into a designer study. The only problem is how do you find the spare cash? It’s all very well saying investing in your home will bring dividends and increase the property value, but if you can’t get any more money from your building society, you’re stuck with out-of-date designs and peeling wallpaper.
Options
But there are options available to you - there are loan providers who are willing to advance you the funds you seek.
This kind of loan is secured against your home making it cheaper; and you can borrow larger sums of money over a longer period of time.
There are definite benefits to plumping for a secured loan – which is much easier to obtain than an unsecured loan. The APR is usually lower than on unsecured loans and there is more flexibility on repayment plans and terms.
As the name implies, you do not need to put up collateral for an unsecured loan. People who opt for unsecured loans are usually non home owners or those with adverse credit records or debt issues.
As it means the lender is taking more of a risk, the interest rates are higher.
A home equity loan is based on freeing up the value of your property. You will need to make enquiries about how much money you can loan – some lenders will demand that a certain amount of your mortgage has been paid off in order to release equity.
Repayments
It is easy to get carried away turning your home into a castle, but it is always sensible to ensure you can afford the secured loans you take out. Keep your repayment capacity and overall financial position in mind in deciding over the loan amount as your home or any other property is at stake – if you have secured loans, lenders can recover their loans by selling the borrower’s property.
You can apply for your loan online to find the fastest and cheapest deal.
Loansum is a specialist broker that searches the market to find a low rate secured loan that’s right for you. Call us on Freephone: 0800 848 8046 to find out how we can help you or email help@loansum.co.uk.
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