This Is What’s the Best Way to Finance a Home Improvement Project? Read Now

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This Is What’s the Best Way to Finance a Home Improvement Project? Read Now


It isn’t very often that home improvements can be done for free – unless you count tidying up and cutting the lawn as “home improvement”. In most cases, home improvement projects require a trip to the local DIY store as an absolute minimum, but if you have big plans for a new kitchen or conservatory, you will probably need to sort out some kind of finance to pay for the work. So what are your options?



Cash is King


Almost without exception, cash is the best way to pay for large purchases. If you have enough money spare use the cash to fund your new kitchen, bathroom or conservatory. You could stash it away in a savings account, but the amount of interest you’ll earn will be lower than any interest paid on a loan or credit card.

Credit Card Finance


Smaller purchases can be funded on a credit card, but unless you have an interest free deal or you can repay the borrowing quickly, this is an expensive option. The only advantage to paying on a credit card is that you are covered if anything goes wrong with the transaction – for example if the builder goes bust or the product is unsatisfactory.

Personal Loan


Personal loans are a popular way of financing home improvement projects. Personal loans are available from a large number of different providers, both online and offline, so you can apply at your local high street bank or choose an online broker such as ukhomeandpersonalloans.co.uk instead. The advantage of a personal loan is that the repayments are fixed for the term, but on the downside, you are unlikely to have the option of paying off the loan early without a penalty.

Store Finance


Store finance works in a similar way to a personal loan except the store organises the finance. Because of this, you won’t have the option of shopping around, so the interest rate on the loan is likely to be higher. However it can be convenient to sign up for finance on the day of purchase, which is why so many people go down this route.

Re-Mortgage or Secured Loan


For larger home improvement projects such as extensions or loft conversions, it may be sensible to borrow against the equity in your home. This allows you to borrow larger amounts of money over a longer period of time. Re-mortgaging will release some cash, although it is a lot harder to get a mortgage these days, so think carefully before you apply.

Secured loans are similar to a personal loan in that repayments are fixed for a specified term, but the interest rates tend to be lower because the loan is secured on your house. The main thing to be aware of when borrowing against property is your home is at risk if you don’t keep up with the repayments. Home improvement projects are usually worth the expense because they add value to a property if done well. However, do make sure you can afford it before you go ahead with the work.


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