If you are considering any type of work on your home from turning your garage into a gym, to a completely new kitchen then usually the only thing in your way is money; unless you have a large sum of money in savings you will need to arrange a home improvement loan. If you want a first rate home improvement job rented out with a guarantee then you will need to use professional tradesmen who should also speed the work up a great deal.
Two types of home improvement loan exist; secured loans which are based on the equity in the property and those that require no security at all. The last responsibility a new homeowner wants is that of it being used as equity for a loan to improve it. The maximum period for finance without any form of equity can be up to fifteen years.
The eligibility for finance without equity can depend on the combined household income, which should not exceed the county limit where the property is located. Although a number of details of the applicable are looked into, these loans are reliably easy to arrange and there is not much documentation to complete.
Older properties may require more work but the mortgage on them is often only a small percentage of their market value; meaning a secured home improvement loan is often the best way to borrow money. This is not the same as your original mortgage; instead, it is an additional loan that is often easier to obtain and process compared to a regular mortgage; usually providing lower interest rates than other types of finance.
This is not an open ended finance agreement and a valuation of your property will be required for a secured loan to be arranged. This calculation is worked out using how much your home is worth, how much is owed, and of course if there are other loans or debts, as these will be included in the calculation.
After this has taken place, the lenders will put a package forward which may not necessarily be for the full amount the homeowner wanted. Although it is not set in stone, the amount they are prepared to lend will be based on a percentage of the property valuation but some lenders will actually lend as much as a quarter again as the property is worth.
Over extending your ability to pay is the quickest way for a person to lose their home when they can not keep up the repayments. So be careful how much money you agree on a home improvement loan and wherever possible only borrow enough to carry out essential repairs.