Homeowners fund improvements with loans, credit cards or a remortgage
Savvy homeowners who are opting to stay in their properties as opposed to battling the soaring house prices are considering developing their current property to increase the value of their home according to moneysupermarket.com. Research has shown that 45% of people believe that home improvements are undertaken to increase the value of a home. An additional 35% believe that it’s a bonus if home improvements add value but otherwise believe that property developments are made to make a home nicer or better.
Research conducted by moneysupermarket.com has found that 7.8 million homeowners have made some home improvements are keen to do more in the future. Among these homeowners there are 1.7 million who have improved other homes and are planning more in their spare time.
Louise Cuming, head of mortgages at price comparison website moneysupermarket.com, said: “It's no surprise we have a bevy of budding property developers out there. With house prices having escalated dramatically over the past five years, along with the cost of stamp duty and mortgage fees, many people are turning to home improvement instead. It seems a large number of people are getting into debt to develop. No doubt, the thinking behind this is there will be a return on investment. Still, it is a worrying statistic that so many people are using a form of credit to finance work, especially with interest rates having risen one per cent since August.
“People taking out credit should compare the market to make sure they are getting the best deal. It may make sense to make small purchases on a credit card (especially if you have a 0 per cent offer), but when it comes to larger renovations, people need to consider their monthly budget when deciding whether to take out a loan or to remortgage.”
The younger generation that is those aged 25 to 34 are the keenest when it comes to home improvements, with nearly two thirds planning to do more compared to the British average of 47%.
When it comes to financing these improvements, in two in five cases, some form of credit such as a loan, credit card or remortgage, has been used to pay for the home improvements. Remortgaging seems to be popular with those aged 35 to 44 while borrowing from friends or family seems to be what those aged 18 to 24 seems to lean towards.
The research also revealed one in five homeowners have found improvements stressful and expensive. This number increases to a quarter of 45 to 54-year-olds.
Homeowners considering a remortgage could look at a secured loan as an alternative. Home improvements like renovating a kitchen or repainting a living room could be financed with a home improvement loan. Made payable over a term to suit the borrower from 5 to 25 years, a secured loan could allow many homeowners to carry out extensive work to their property like an extension which could add value to a property in the long run. Decorators and contractors could be financed with a home improvement loan ensuring that work that is carried out is to a professional standard.
Nemo´s typical rate is 8.9% APR variable. A NEMO LOAN IS SECURED ON YOUR HOME. THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE OR ANY OTHER DEBT SECURED ON IT. Research conducted by moneysupermarket.com has found that 7.8 million homeowners have made some home improvements are keen to do more in the future. Among these homeowners there are 1.7 million who have improved other homes and are planning more in their spare time.
Louise Cuming, head of mortgages at price comparison website moneysupermarket.com, said: “It's no surprise we have a bevy of budding property developers out there. With house prices having escalated dramatically over the past five years, along with the cost of stamp duty and mortgage fees, many people are turning to home improvement instead. It seems a large number of people are getting into debt to develop. No doubt, the thinking behind this is there will be a return on investment. Still, it is a worrying statistic that so many people are using a form of credit to finance work, especially with interest rates having risen one per cent since August.
“People taking out credit should compare the market to make sure they are getting the best deal. It may make sense to make small purchases on a credit card (especially if you have a 0 per cent offer), but when it comes to larger renovations, people need to consider their monthly budget when deciding whether to take out a loan or to remortgage.”
The younger generation that is those aged 25 to 34 are the keenest when it comes to home improvements, with nearly two thirds planning to do more compared to the British average of 47%.
When it comes to financing these improvements, in two in five cases, some form of credit such as a loan, credit card or remortgage, has been used to pay for the home improvements. Remortgaging seems to be popular with those aged 35 to 44 while borrowing from friends or family seems to be what those aged 18 to 24 seems to lean towards.
The research also revealed one in five homeowners have found improvements stressful and expensive. This number increases to a quarter of 45 to 54-year-olds.
Homeowners considering a remortgage could look at a secured loan as an alternative. Home improvements like renovating a kitchen or repainting a living room could be financed with a home improvement loan. Made payable over a term to suit the borrower from 5 to 25 years, a secured loan could allow many homeowners to carry out extensive work to their property like an extension which could add value to a property in the long run. Decorators and contractors could be financed with a home improvement loan ensuring that work that is carried out is to a professional standard.
