Whether you’re transforming your current property or building a new house from the ground up, you’ll need enough funds to cover the various costs involved.
Raising the money needed to make your dream home a reality might be a daunting prospect, but there are lots of ways to go about this, and we’ve put together a list of the most attainable, attractive options you should consider trying.
Taking Out A Personal Loan
Borrowing from a reputable lender is still the best way to fund a home renovation project, and it’s easier to find good deals today thanks to the raft of online comparison tools available.
Before you dive in, you should calculate personal loan costs so that you have an idea of the repayments you’ll need to encompass in your budget over the lifetime of the agreement.
You also need to bear in mind that the interest you’ll pay will depend on the total term of the loan. A longer deal might mean your monthly repayments are smaller, but the higher rate of interest applied will lead to greater cumulative costs.
With all of the variables weighed up, you’ll be in a strong position to use a personal loan to fulfill your property ambitions.
Remortgaging With Your Existing Provider
If you’ve already got a mortgage left to pay, then it could be easier to roll any additional borrowing you need into this deal, rather than taking out a new loan.
Of course this is entirely contingent on your lender being willing to refinance your home and unlock some of the equity in it to fund renovations or any other improvements you want to make. Not every mortgage provider will give you the green light, so check the small print before you start down this route.
Using Your Credit Card
If you’ve already got a credit card at your disposal, you don’t need to go through the rigmarole of meeting loan approval requirements. Instead, you could simply rely on the credit that your card provider has already extended to you to fund any big purchases that you plan to make to beautify your residence.
You could even put in a request for your credit limit to be extended with this in mind, although again this is at the discretion of the card provider.
Be aware that credit cards can have higher levels of interest applied than average personal loans or mortgages. This means that once you’ve accumulated debt on your credit card, it will be costlier to maintain and pay down.
If you can only afford the minimum repayments on your credit card, it’s not a good idea to use it in this way. If you are confident that you can pay off any home improvement expenses you put on it in a few months, then it’s a good option for accelerating your elegant renovation plans, or for covering any unexpected costs that come about when work is already underway.
Selling Up And Taking On A Property Project
Finally, you could consider selling your current home and instead of moving to a fixer-upper; one which has good bones but needs some TLC to take it to the next level.
Trading down to a property that’s much cheaper and is in need of repairs could leave you a lot of money to play with, and will also let you put your own personal stamp on every room without feeling like you’re being wasteful.
You will need to do a lot more work and research, and also be happy to oversee the input of contractors and other essential professionals. Even so, for the most ambitious projects, this is the way to go.