Secured Loans UK

A home improvement loan is frequently an lengthening of your mortgage. Mortgage lenders actually encourage a watchfully managed and well planned home improvement program, because it assists in raising the value of the home that they made an investment in. You should also be aware though, that a mortgage provider also gets the chance to obtain more money off you in interest.

Some people will coincide getting a home improvement loan with the purchasing of their property. A simple way to do this is to add up the total amount of your mortgage amount plus your home improvement loan and make sure that the total is less than the value of your home.

But why go to your mortgage lender first?

The answer is that you can get the loan at your mortgage lender's SVR. It would be very rare that a lender's SVR is more than the lowest personal loan rate. Of course, you can still use an unsecured loan to make the improvements, but you are unlikely to get good value. Some lenders will advance money to you in instalments. The reason for this is that it is very difficult to predict how much you will need a loan to be for when making a major home improvement. It could end up being less than you originally thought and in the same breath it could be more.

Home improvement loans are for essential improvements only. You are unable to apply for a home improvement loan for, say, an extension, unless you are able to prove that it is essential. Non-essential work is more likely to be funded by a mortgage extension, this you will have to pay that back over the full term of the mortgage unlike the home improvement loan.

There is no equity required for home improvement loans. The maximum loan amount can go as high as 125% of the current value of your home. Because the loan is essentially an equity loan or second mortgage, a major advantage is your ability to write off the interest on the payments.