Should you use a secured loan to renovate your home?

Last post: Mar 26, 2018

The UK is becoming a nation of nesters. Over the past four years the number of homeowners choosing to make home improvements instead of making a move has shot up five fold, rising from 3% to almost 15%.

These figures are even higher amongst millennials who are now even more likely than their older counterparts to partake in a spot of home improvement rather than finding a new fit. Perhaps this trend lies in the experiences of these millennials, many of whom have found it difficult to get onto the property ladder. Now they've climbed a rung, they're not keen to face the mortgage lenders again. And who can blame them?


Why is the UK staying at home?


Economic uncertainty is another factor which may be keeping Brits hunkered down at home. With Brexit looming and all manner of global economic chaos on the doorstep, many people in the UK do not feel confident in the housing market. This makes the risk of upscaling seem even greater than usual. Far better then, to invest in what you already have.


Funding improvements


One way in which many people are choosing to fund their home improvements is by taking on secured loans. These secured loans, also known as second charge mortgages, are secured against the original property, freeing up the finances required to invest in home improvements.


From extensions and loft conversions, to kitchen remodelling, there are all sorts of improvements which people are diving into in order to turn their existing home into a more suitable environment. Whether your needs have changed thanks to a growing family or a new home business, investing in your property can help you create a completely custom fit - without the fear and stresses of re-entering the housing market.


Rates and loan amounts


Secured loans are proving to be a popular option for this type of project as they typically feature lower interest rates than unsecured loans. They can also be arranged for larger amounts over longer periods, providing access to the finances homeowners need to reimagine their homes and invest in their properties.
 

Interested in funding your home improvements with a secured loan? We connect homeowners with made-to-measure financial products that suit their lifestyles. Speak with our team today to learn more.



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