Home Improvement Loans have created a new drift in the UK market. Read this article to know more with 5 money-saving tips that can help you save during a costly renovation.
The Gist: Brits love renovating and DIYing – whether its an apartment or cottage. New data infer that the UK homeowners have spent a combined £295 billion renovating their homes over the past five years. The article will delve into how Brits are using loans for home improvements.
As the year’s pass, the question looms, what has changed in our houses? The answer is “MANY THINGS”. From new kitchens, walk-in wardrobes and garden landscaping, we love it all. We Brits love home renovation and improvement to a big extent. A study by NAEA Propertymark states, 98 per cent of us has made improvements in the properties in the last five years. Ideally, for renovating a small part of the house people use their income or savings. But many of us do need to borrow loans for home improvement.
According to the House of Commons– England solely needs to build between 240,000 and 350,000 new houses a year to meet the housing demand of the people. This indicates that more people will get inclined towards home improvement this year.
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Norwich Trust
Loan Term
1 -
10 years
4.8/5
Representative APR
31.90%
Minimum Age
21 Years
Representative Example: £12,000 over 66 months, 31.9% APR fixed. Monthly payment £358.22 Annual interest rate 28.01% fixed. Interest payable £11,642.52. Total repayable £23,642.52.
4.8/5
Norwich Trust
Loan Amount
£4000 -
£20000
Loan Term
1 -
10 years
Representative APR
31.90%
Minimum Age
21 Years
Minimum Income
£2000 per month
Representative Example: £12,000 over 66 months, 31.9% APR fixed. Monthly payment £358.22 Annual interest rate 28.01% fixed. Interest payable £11,642.52. Total repayable £23,642.52.
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Evolution Money Loans
Loan Term
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20 years
4.5/5
Representative APR
28.96%
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Representative Example: Loan Amount: £20950.00, Loan Term: 85 Months, Interest Rate: 23.00% PA Variable. Monthly Repayments: £537.44. Total Amount Repayable: £45,682.15. This example includes a Product Fee of £2,095.00 (10% of the loan amount) and a Lending Fee of £714.00
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Evolution Money Loans
Loan Amount
£5000 -
£100000
Loan Term
1 -
20 years
Representative APR
28.96%
Minimum Age
18 years
Minimum Income
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Representative Example: Loan Amount: £20950.00, Loan Term: 85 Months, Interest Rate: 23.00% PA Variable. Monthly Repayments: £537.44. Total Amount Repayable: £45,682.15. This example includes a Product Fee of £2,095.00 (10% of the loan amount) and a Lending Fee of £714.00
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1Plus1 Guarantor Loans
Loan Term
1 -
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4.4/5
Representative APR
39.90%
Minimum Age
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Representative Example: Borrowing £3000 over 36 months with a representative APR of 39.9% (variable),the amount payable would be £134.21 a month,with a total cost of credit of £1831.56 and a total amount payable of £4831.56.
4.4/5
1Plus1 Guarantor Loans
Loan Amount
£1000 -
£10000
Loan Term
1 -
5 years
Representative APR
39.90%
Minimum Age
18 years
Minimum Income
Not mentioned
Representative Example: Borrowing £3000 over 36 months with a representative APR of 39.9% (variable),the amount payable would be £134.21 a month,with a total cost of credit of £1831.56 and a total amount payable of £4831.56.
To help you comprehend better about home improvement and home improvement loans- the LoanTube team considers the following topics in this article:
1. Renovations and Us
2. Brits and Home Improvement Loans
3. Things to Consider Before Taking out a Home Improvement Loan
4. Who Takes Home Improvement Loans?
5. Home Improvement and Future Savings
6. Advantages and Catastrophe
7. 5 Money-saving Tips for Home Improvement
Renovations and Us!
- The notion of home improvement is the process of refurbishing or making additions to one’s home. It helps in improving and upgrading a house so that it stays in good condition. Moreover, upgrading the existing interiors also enhance the overall price of the property.
- It is always recommendable to get home alterations done, whether we’re making critical repairs, cosmetic modifications, or even scoring an extension. The motivation behind home improvement for many Brits is- improving the look of home (55%), while for one fourth (23%), it’s a good investment to add value to the property. A further (19%) got fixer-upper on target, whereas one in eight (12%) wants to build more space.
- In the 2017-18 year, the English housing stock raised by 222,000, a 2% annual increase. (Yahoo Finance)
Brits and Home Improvement Loans
- Brits love home repairs as it adds an average of £46,503.94 to the property’s value. It proves to be a great way to make the home a better place to live while increasing its utility at the same time. However, even though making improvements to the current house often works out a lot inferior to buying a new home, many designs still require an important monetary charge.
- Many times we may need to borrow money to fund for the renovation. As the average spend amount on home improvements in the UK is £14,015. Hence, a home improvement loan with no guarantor can be one of the best ways to do this.
Things to Consider Before Taking out a Home Improvement Loan
- Whatever you may have intended for your home, renovations can be pricey. If you decide to fund the project with a home improvement loan, make sure you know exactly how much you need.
- First, consider the time and expense of your improvement. Propose what you desire to change in your home, then do some research into how much local traders are charging for it.
- Also, the budget for the preparation and price of your home improvements above original quotes.
- Make sure you know exactly how much the entire project could cost – and be vivid. Planning will help you obtain the desired loan amount for the repair and renovation.
Who Takes Home Improvement Loans?
- Generally, people who take home improvement loans have the highest average income, intimating that it’s the type of loan which draws more affluent consumers. In terms of age, home improvement is most popular amongst the 18-35 age band. The average amount, people in this age band borrow is 4000 while people in the age band of 40-60 years borrow an average of 9000 for home renovation. There are lots of distinct reasons why this might be the case, but it’s most likely because this is the age group (18-35) who are likely to be first-time purchasers.
Home Improvement and Future Savings
- Nobody enjoys spending money on bills, but it’s inescapable. What’s worse is that a part of the money leaving your account is wasted on inabilities. If you’re counting on improving your home then cutting out some inefficiencies could be a good start.
Advantages and Disadvantages
Advantages
- A home improvement loan provides you with a chance to borrow- £15,000 over five years. It is a popular means of financing home improvements.
- When you take a loan, you have fixed repayments– making it easier to budget – and you can generally pick repayment terms, which suits you.
- Home improvement loans are beneficial for making repairs and upgrades that will enhance the value of your property.
- This means, if you can afford to repay the loan within a shorter time, it’ll cost you less in interest. Also, you have the option of spreading the loan amount and reducing the size of the repayments if required.
Disadvantages
- During varying economy, interest rates can be costlier, which implies that the loan could end up carrying more in the long run than any increase in property value your home improvements brings out.
- Your credit score also has a notable impact on the interest rate and the amount you can borrow.
- Every time you apply for a loan, it drops a mark on your credit report. Many applications in a short period can make you look much less engaging to lenders.
5 Money-saving Tips for Home Improvement
Create a budget
- Before you start dashing the cash, sit back and do the tallies so you can accurately evaluate what’s reasonable and what’s out of reach. Going over budget is obvious when making home improvements, so portion some additional per cent for unforeseen costs.
DIY (Do It Yourself)
- While some jobs can leave to the specialists, there are some other that you can try at home with a little knowledge. Basic decorating can mesh with the right experience. Although it’s worth, setting in mind that you may have to work out for correctional work. Before you drive, make sure you have the right tools and equipment.
Wait for the deals
- Before making big purchases, such as kitchenettes or loft items, hold on for the right deals and sales. Where there are some super deals to be discovered. As well, wait for the Black Friday sales, as there are some useful deals that you can find.
Spring small
- While it’s easy to get taken away, it’s important to be practical. If you have limited resources, prioritise what’s most vital and take small moves to enhance your living.
Spend light save right
- It can be intriguing to opt for the standard product on the market, but be conscious that buying cheap can even mean buying twice. Hence, it’s worth discovering what you’re able to conserve on – and what you’re not – before you start purchasing goods.
Know More About Home Improvement Loans
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