What Are Home Renovation Loans Used For? | The Second Mortgage Company

What Are Home Renovation Loans Used For?

27/05/2021

Home improvement loans can be the perfect way to renovate to your property without investing too much of your own money up front, which you may not have in the first place. There is no obligation to use your loan for one specific home improvement, but many people choose to use their home renovation loans for specific improvements.

By investing in your property and improving it, it becomes not only more comfortable to live in but can also see its value increase by potentially as much as or more than 20%. When it comes to improving your home and before borrowing money in the form of a second mortgage to fund the necessary works, consider your financial position and whether you will be able to comfortably afford the repayments.

Here are some of the most popular uses for home improvement loans and why they're so popular.

Home Extensions and Conversions

For anyone whose family is expanding or who need some more space, an extension can be a great choice. Not only do you have full control over the space that you build, but it also mitigates the stress of having to move in order to find an extra room or two, which can be comfortably provided in the form of a loft or other property extension.

Many people choose to add on an extra bedroom to their house, build a conservatory, expand their kitchen or even convert a basement if they have one.

With many people changing the way they work and how often they commute in to the office, more people are undertaking extensions to allow for additional and necessary space for home working. However and wherever you choose to build an extension, a well planned and executed extension can add value to your home and make it more pleasant to live in and a home improvement loan is often the key you need to unlock the true potential of your property.

Property extensions, much like most major home renovations can be expensive, as you are building from scratch. For example, the average loft extension in the UK costs over £25,000 and so this should be carefully considered.

This is why so many people choose to use home improvement loans in the UK, it gives you all the money you need upfront to complete your renovation and let you pay it back in manageable chunks over a longer period of time. The loan is also secured against your property in the form of a second mortgage, meaning that the risk to the lender is less than if the loan were unsecured.

If you need more space for new family members, work or something else, your extension likely cannot wait, which is why home improvement loans are such a great choice, as they can be arranged and funded fairly quickly.

Kitchen and Bathroom Renovations

The bathroom and the kitchen are arguably the most important rooms in any home. Repeated UK surveys have found that when looking to buy a home, many of us are most influenced by the kitchen and bathroom space.

A good bathroom can make us feel like we're in a spa helping us to relax and unwind after a long day. We also spend a large amount of time during our lives in the kitchen either cooking or entertaining so it is another important room. A bathroom and kitchen renovation can make your home feel clean, sleek and modern, even if the rest of the house isn't yet up to the same standard.

A complete remodel of the kitchen or bathroom though can be an expensive undertaking. Therefore, for those who don't have the money upfront, a home improvement loan can be the perfect answer.

Renovating Your Property Before Selling

Many people looking to sell their property think about whether they can add any further value to the property before they put it on the market. Anything from a kitchen renovation to a new coat of paint can add value to your property and help potential buyers see themselves in your space.

For bigger renovations like remodelling or redecorating a bathroom or kitchen, you may not have all the money you need upfront which is why many people use a home improvement loan, to cover the potentially tens of thousands of pounds required to properly redo a bathroom or kitchen.

As with other home improvements, a loan specifically for this purpose allows you (subject to checks and underwriting) to borrow the money; carry out the works and add the value you need to your property. Then, once you come to sell, pay off the loan from the proceeds of the sale.

Garden Landscaping

You may be able to make your garden into a relaxing and magical space all on your own, but for most people, improving and upgrading a garden will require professionals, in the form of a landscape gardener. Hiring a garden landscaping expert can be the perfect way to make a garden feel like paradise instead of just a patch of grass and a patio.

Whether you are looking to make your garden a more relaxing place to entertain or turn it into a wonderland for your children to play in, hiring a landscaping expert will allow you to fulfil your vision. The money you borrow with your home improvement loan could allow you to pay a professional landscaper to design and create your dream garden and improve your property’s value along the way.

As a mortgage is secured against your home, your home could be repossessed if you do not keep up the mortgage repayments. Think carefully before securing other debts against your home.

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