Home Improvement Loans
Financing your building project
Home Improvement Loan are a good way to extend your home, create your dream bathroom, add a conservatory or refurbish your kitchen. They can be used for anything to do with the home which improves it.
There are two types of Home Improvement Loans, either secured or unsecured loans on offer from finance companies.
Secured Loans
Secured loans are where you borrow against your house and an unsecured loan. Secured home improvement loans are usually cheaper, since the lender is taking less risk, and hence can offer a lower rate of interest. If you fail to keep up the payments they could sell off your house to recover their debt.
Unsecured Loans
Unsecured loans have no securities on the loan, if you fail to pay they can credit blacklist you or send the bailiffs round. So, it is a good idea to use a reputable wellestablished company.
Where to get a home improvement loan?
Try your local bank and building society branches and get details of their rates.
Try the national press for adverts for Home Improvement Loans.
Search Google, MSN or Yahoo! for 'Home Improvement Loan comparison' to find sites that automatically list the best deals of the day. Your lender should tell you what the total cost of repayment of the Home Improvement Loan would be. In this way any additional 'hidden' charges can be seen when comparing lender deals.
Once you've found the best deals then you need to apply in writing, by telephone, visit the branch or apply online.
Your application is based on the following:
- Salary
- Outgoings
- Credit History
If you have a poor credit rating and find yourself rejected, then it might be worth checking your credit history by contacting Experian or Equifax. There will be a charge for this service.
Once you have the Home Improvement Loan
You have up to 7 days to cancel it with no obligation under the 1974 Consumer Credit Act if the loan is below £25,000.
After 7 days you can arrange for a Payment Protection Plan.
If you lose your job the Payment Protection Plan will come into effect, making repayments for you for a period of time dependant on the Payment Protection Plan policy.
Payment Protection Plan can be taken out with your lender or an independant company.
