Is Homeowner Loan Answer to High Renovation Costs?
Home renovations could be rewarding, aesthetically as well as financially. We all love to be surrounded by beautiful ambiance and space; it triggers positive flow of energy after all. Besides, a well crafted home renovation including house extensions can significantly raise the value of your abode.
Although the cost of house remodeling plans could be limitless; it is recommended to device a careful budget before beginning any project. For, this would help you stay on track throughout your journey of home restoration. Unplanned house repair projects can lead to severe cash shortages in the middle of tasks and may pose serious financial implications as a result.
Locating the source of funding for home improvement is thus as important as the planning phase for home improvement projects. A lot of borrowers apply for homeowner loans for home renovations. Homeowner loans are basically home equity loans which are borrowed as a second charge against the property, despite the current mortgage.
Is home equity loan a solution to home renovation projects?
Almost all new house purchases in the UK are supported by mortgage plans. Being a high cost asset purchase, home mortgage span varies from 5 to 30 years. It is highly unlikely that a property would miss a repair or renovation for such a long period. Herein a facility to borrow a second charge against the part of home ownership helps homeowners avail a much needed funding source to maintain their property structure.
Being a secured loan, the rate of interest offered is low and there is no dearth of loan partners for the same. Despite bad credit history or low score you can conveniently search for homeowner loan for home improvement. Whether you need a very quick loan or an instalment loan to replace your boiler or furniture or faucets, a equity loan can be an easy source of funding for you.
Home improvements are also the means to raise the value of your house. When planned carefully, you can enjoy 10-30 per cent increase in the value of your house. Thus it would be more of an investment in your asset value rather than a loan. Some commonly carried out extensions for the purpose include installing an additional lavatory on the corner of garden; or adding additional sitting space in the backyard; renovating kitchen and central area of house, buying energy efficient electronics and more.
All in all, it could be said that homeowner loans help borrowers avail an additional loan at low cost. These are hassle free loans, available as flexible instalment loans for home improvement.
Before you apply for a homeowner loan it is important to justify your renovation plans. The cost of the repair should match the outcomes-aesthetically or financially!
As homeowner loan is a secured one, you basically pledge your home equity for funds. Non repayment of loan can cause ownership dispute and the lender can call you in the court. Thus before raising a home equity loan, you must weigh down both pros and cons of your decision. You should always have a robust repayment source to back your plan. This may not be a case against home owner loan but it certainly is a serious concern which you should pay attention to.