{"id":26652,"date":"2022-07-12T14:36:44","date_gmt":"2022-07-12T13:36:44","guid":{"rendered":"https:\/\/www.lendingstream.co.uk\/blog\/?p=26652"},"modified":"2022-12-20T11:50:56","modified_gmt":"2022-12-20T10:50:56","slug":"how-to-finance-home-improvements","status":"publish","type":"post","link":"https:\/\/www.lendingstream.co.uk\/blog\/how-to-finance-home-improvements\/","title":{"rendered":"How to Finance Home Improvements? (4 Best Ways)"},"content":{"rendered":"\n<p>Making home improvements are a great way to increase the value of your property, or make a house your home, but it\u2019s often expensive. When it comes to finding the money to finance your renovations, there are 4 main options. <ins><\/ins><\/p>\n\n\n\n<p>You can:<\/p>\n\n\n\n<ol class=\"wp-block-list\" type=\"1\"><li>Use your own money<ins><\/ins><\/li><li>Take out a loan<ins><\/ins><\/li><li>Use a credit card.<\/li><li>Pay in instalments <ins><\/ins><\/li><\/ol>\n\n\n\n<p>But which is the best way to finance your home improvement project?<\/p>\n\n\n\n<p>The answer depends on your situation. You need to be clear on exactly what renovation work you want to do, and how much it\u2019ll cost to do it.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-69f2a7a356b81\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-69f2a7a356b81\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.lendingstream.co.uk\/blog\/how-to-finance-home-improvements\/#how_much_money_do_i_need_to_finance_my_home_improvements\" >How Much Money Do I Need to Finance My Home Improvements?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.lendingstream.co.uk\/blog\/how-to-finance-home-improvements\/#how_to_fund_home_improvements\" >How To Fund Home Improvements<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.lendingstream.co.uk\/blog\/how-to-finance-home-improvements\/#1_use_your_own_money\" >1. Use Your Own Money<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.lendingstream.co.uk\/blog\/how-to-finance-home-improvements\/#2_use_a_credit_card\" >2. Use a Credit Card<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.lendingstream.co.uk\/blog\/how-to-finance-home-improvements\/#3_take_out_a_secured_or_unsecured_loan\" >3. Take out a secured or unsecured loan<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.lendingstream.co.uk\/blog\/how-to-finance-home-improvements\/#4_pay_in_instalments\" >4. Pay In Instalments<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.lendingstream.co.uk\/blog\/how-to-finance-home-improvements\/#final_words\" >Final Words<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\" id=\"how-much-money-do-i-need-to-finance-my-home-improvements\"><span class=\"ez-toc-section\" id=\"how_much_money_do_i_need_to_finance_my_home_improvements\"><\/span><strong>How Much Money Do I Need to Finance My Home Improvements?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The first thing you need to do is write down everything you want to do. List all the home improvements you want to make and put them in order of priority. The next step is to work out how much your home improvements are going to cost. When you ask builders to give you a price, ask for a written quote, not just an estimate.<\/p>\n\n\n\n<p>Remember, even with an estimate, the amount you end up paying can change from the original figure that they give you. It\u2019s not fixed. This means you won\u2019t know exactly how much you&#8217;ll need to fund your home improvements.<\/p>\n\n\n\n<p>A quote means that the price they give you is the price you pay. The builder may come across an unexpected expense while they\u2019re doing the work. If this happens, they\u2019ll have to agree the extra cost with you first.<\/p>\n\n\n\n<p>You should also shop around to get quotes from at least three different builders. The cheapest one may not always be the best. Make sure you use builders that have been recommended to you by other people you know, or have good online reviews.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"how-to-fund-home-improvements\"><span class=\"ez-toc-section\" id=\"how_to_fund_home_improvements\"><\/span><strong>How To Fund Home Improvements<ins><\/ins><\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>We mentioned a few options to finance your home improvements, but which is best for you?<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"1-use-your-own-money\"><span class=\"ez-toc-section\" id=\"1_use_your_own_money\"><\/span><strong>1. Use Your Own Money<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>If you\u2019ve only got small renovations planned, then you may have the cash to pay for them yourself. This is the best way to fund them, so long as you don\u2019t use all of your savings. If you\u2019re short of money, save hard before the renovation work begins. It\u2019ll be worth the <a href=\"https:\/\/www.lendingstream.co.uk\/blog\/best-ways-to-cut-back-on-expenses\/\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>short term sacrifice<\/strong><\/a>.<\/p>\n\n\n\n<p>The beauty of paying in cash is that you can go at your own pace. You\u2019ve got the cash there ready, and you\u2019re not relying on a third party to lend it to you. Equally, you\u2019re not increasing the overall cost of the work by paying interest on borrowed money. And you haven\u2019t got years of repayments after your home improvements are finished.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"2-use-a-credit-card\"><span class=\"ez-toc-section\" id=\"2_use_a_credit_card\"><\/span><strong>2. Use a Credit Card<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>If your home improvement project isn\u2019t too big, you could fund it using a credit card. There are always 0% cards on offer. These are ideal if you can pay the money back within the interest free period.<\/p>\n\n\n\n<p>If you can\u2019t get a 0% credit card, look for one with perks. There are credit cards that offer loyalty points, rewards or cashback which could benefit you.<\/p>\n\n\n\n<p>Whatever you do, make sure you can pay back more than just the minimum repayment each month. Otherwise, this could become an expensive way to pay for home improvements.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"3-take-out-a-secured-or-unsecured-loan\"><span class=\"ez-toc-section\" id=\"3_take_out_a_secured_or_unsecured_loan\"><\/span><strong>3. Take out a secured or unsecured loan<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>A loan is a good option to fund more expensive home renovation projects. The difference between a secured and unsecured loan is that secured loans are linked to an asset. The asset could be a car or a house.<\/p>\n\n\n\n<p><strong><a href=\"https:\/\/www.lendingstream.co.uk\/loans\/unsecured-loans\/\" target=\"_blank\" rel=\"noreferrer noopener\">Unsecured loans<\/a><\/strong> are an option for home improvements of up to \u00a350,000. If the amount you need is over \u00a350,000 then you\u2019ll need a secured loan. Remortgaging your home is another way of borrowing larger sums of money to pay for the renovations.<\/p>\n\n\n\n<p>Whichever <strong><a href=\"https:\/\/www.lendingstream.co.uk\/loans\/\" target=\"_blank\" rel=\"noreferrer noopener\">type of loan<\/a><\/strong> you take, it will come with interest and other charges. Remember that the repayments might continue long after the renovations are finished. If your loan&#8217;s secured against your home, remember you\u2019re at risk of losing it if you don\u2019t keep up the repayments. So, don\u2019t borrow more than you can afford to pay back.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"4-pay-in-instalments\"><span class=\"ez-toc-section\" id=\"4_pay_in_instalments\"><\/span><strong>4. Pay In Instalments<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>You could agree with the builder to pay for the work using instalments. This would help to spread the cost of the renovation work overtime. You could then use a combination of the options above to fund each instalment. You\u2019d also have time to <strong><a href=\"https:\/\/www.lendingstream.co.uk\/blog\/best-ways-to-save-money\/\" target=\"_blank\" rel=\"noreferrer noopener\">save up some money<\/a><\/strong> in between payments.<\/p>\n\n\n\n<p>The advantage of paying the builder this way is that you can agree stages of the renovation. This means that you only pay them once certain stages in the developments have been finished. If they haven\u2019t reached a stage by the agreed date, you could pay them less at that point. Or you could delay payment until each stage is complete.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"final-words\"><span class=\"ez-toc-section\" id=\"final_words\"><\/span><strong>Final Words<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>To find the best way to finance your home improvements, work out how much it\u2019s going to cost first. Then you can decide which funding option is best for you. Compare the cost of borrowing with different lenders, so you get the best interest rate. And keep some money back for unexpected costs.<\/p>\n\n\n\n<p>Done properly, renovations can add value and comfort to your home. But don\u2019t borrow more than you can afford to fund them.<\/p>\n\n\n\n<p><strong>Disclaimer:<\/strong> We are not providing financial advice, these are just tips for informational purposes.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Making home improvements are a great way to increase the value of your property, or make a house your home, but it\u2019s often expensive. When it comes to finding the money to finance your renovations, there are 4 main options. You can: Use your own money Take out a loan Use a credit card. Pay [&hellip;]<\/p>\n","protected":false},"author":48,"featured_media":26653,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[267],"tags":[],"class_list":["post-26652","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-loans"],"_links":{"self":[{"href":"https:\/\/www.lendingstream.co.uk\/blog\/wp-json\/wp\/v2\/posts\/26652"}],"collection":[{"href":"https:\/\/www.lendingstream.co.uk\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.lendingstream.co.uk\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.lendingstream.co.uk\/blog\/wp-json\/wp\/v2\/users\/48"}],"replies":[{"embeddable":true,"href":"https:\/\/www.lendingstream.co.uk\/blog\/wp-json\/wp\/v2\/comments?post=26652"}],"version-history":[{"count":1,"href":"https:\/\/www.lendingstream.co.uk\/blog\/wp-json\/wp\/v2\/posts\/26652\/revisions"}],"predecessor-version":[{"id":26654,"href":"https:\/\/www.lendingstream.co.uk\/blog\/wp-json\/wp\/v2\/posts\/26652\/revisions\/26654"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.lendingstream.co.uk\/blog\/wp-json\/wp\/v2\/media\/26653"}],"wp:attachment":[{"href":"https:\/\/www.lendingstream.co.uk\/blog\/wp-json\/wp\/v2\/media?parent=26652"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.lendingstream.co.uk\/blog\/wp-json\/wp\/v2\/categories?post=26652"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.lendingstream.co.uk\/blog\/wp-json\/wp\/v2\/tags?post=26652"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}