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Undertaking a home improvement project can be really expensive. But home improvements are also an excellent investment, as they can boost your quality of life and add value to your property. With that in mind, what\u2019s the best way to fund home improvement projects? Below, we explore some of the options available to you to help you make up your mind. <\/b><\/span><\/p>\n Can you pay for home improvements by borrowing extra money on your mortgage? <\/b><\/span><\/p>\n Borrowing extra money on a mortgage is a common way of funding home improvement projects. This is particularly the case for projects including loft conversions, new kitchens or bathrooms, or renovating a certain area of your house. You can contact your mortgage provider and negotiate the best way to borrow additional money to fund home improvements, and it\u2019s a relatively easy way to access the capital that you need. However, there are some issues you need to think about before remortgaging: <\/span><\/p>\n As well as remortgaging you to fund home improvements, there are two other options available to you as far as borrowing against the value of your home is concerned: <\/span><\/p>\n Further advance <\/i><\/span><\/p>\n You can apply to your mortgage provider for a further advance, and the money that you borrow is repayable at a different rate of interest. While you can\u2019t get an advance from all lenders, they\u2019re often more straightforward than remortgaging, and they\u2019re often cheaper. In most instances, you will need a loan-to-value (LTV) ratio of less than 85% to be approved. <\/span><\/p>\n Second charge mortgage <\/i><\/span><\/p>\n In this instance, you\u2019re actually taking out a second mortgage with a new lender. Therefore, you will have two mortgages to repay at the same time. It\u2019s known as the \u2018second charge\u2019 because of security. If you fail to repay the second mortgage, the lender can take your property and sell it to recover the money owed. You will need to have significant equity in your home to be eligible for a second-charge mortgage, but it\u2019s a worthwhile consideration for some people. <\/span><\/p>\n Is borrowing extra money on your mortgage a smart move? <\/b><\/span><\/p>\n While borrowing additional money on a mortgage is a viable option for some people, it won\u2019t be ideal for all homeowners. Here are some things you need to think about: <\/span><\/p>\n An alternative to borrowing more money on your mortgage <\/b><\/span><\/p>\n If you don\u2019t want to borrow more money on your mortgage, a home improvement loan is a viable alternative. It\u2019s a type of unsecured personal loan, and if you\u2019re looking to borrow less than \u00a320,000 to fund your project, it\u2019s a great option to think about. Although personal loans come with higher interest rates than mortgages, the fact that they\u2019re repaid over a shorter period of time often makes them a cheaper form of credit. Also, personal loan fees are often non-existent or extremely low. Another good thing about personal loans is that they\u2019re unsecured, meaning your home won\u2019t be at risk. The biggest drawback of personal loans is that they\u2019re normally capped at around the \u00a320,000 mark, meaning they won\u2019t be ideal for all home improvement projects. <\/span><\/p>\n If you\u2019re looking to borrow money to fund a home improvement project, get started with Koyo Loans\u2019 loan calculator<\/span><\/a> to work out how much you can borrow today. <\/span><\/p>\n","protected":false},"excerpt":{"rendered":" Undertaking a home improvement project can be really expensive. But home improvements are also an excellent investment, as they can boost your quality of life and add value to your property. With that in mind, what\u2019s the best way to fund home improvement projects? Below, we explore some of the options available to you to … <\/p>\n\n
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