Borrowing for Home improvements

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As the credit crunch has taken its toll more and more of us are turning to home improvements instead of moving home with mortgages harder to get in the last 3 years many of us are either building extensions to cope with the size of the family or turning to attic conversions for the same reason.

Doing an attic conversion or home extension can be expensive if you cannot do it by yourself and more of us are looking at ways in which to finance these projects with many not going down the traditional route and adding it to our mortgage.

How much do you need?

Here is a guide to help you consider the amount you need to borrow and where to borrow the money from. Get 3 estimates for the work required and always try to get these from recommendations from people who have used the builder in the past as this is always the best way to get the job done correctly as you can see their previous work.

• Never always think cheapest is always the best quote as this can often lead to disaster as we often hear about horror stories in the press.
  
• Always ask to see the builders insurance policies before you accept their quotes
• Get a definite time frame for work as the last thing you want is your extension or home exposed to the elements of the weather any longer than they need to.

When you are considering the amount of money you need to borrow take these factors into account Always add 10% o to the quote for unforeseen circumstances and always add the furnishings and décor to the amount you want to borrow so shop around for what you like and add this to the figure you want to borrow as the last thing you want is to have a finished extension and not have the finances to furnish it.

Where you get the fund?

Many people are fortunate to have the money already by either saving it up, inheriting it or by simply having been missold ppi and having enough compensation awarded to allow them to complete the work.

If you need to borrow the money then firstly always approach your mortgage lender as this will be the cheapest way to finance the improvements, if this fails you can either look at a secured loan or personal loan through your bank or other provider but always use comparison sites to see what the best rates are available to you as this could save you thousands over the term of the loan.

Finally as a last resort you can add it to credit cards but it is advisable not to do this as the interest you will pay will be far greater than that of a loan. Good luck with your home improvements and as a reminder always take photos of before and after so you can reflect on the change in years to come.