Choose the Right Tools for your Home Improvement

Planning a home renovation? Finding the right financing to match your needs is vital. A loan for home improvements is issued by lenders based on the view that the amount of the loan used to renovate your house will add to the overall value of the property.

Increasing numbers of home owners are finding there are many reasons for choosing to renovate rather than move. Significant house price rises of late mean many home owners now have considerable equity in their property. Also, the high cost of purchasing a new home has encouraged more and more home owners to explore the option of renovating.

There are a range of home improvement finance options available, but the final decision will depend on the size and scope of your home improvement project. From a full renovation or extension to a relatively simple kitchen or bathroom update, it's important to find the right financing to suit your plans.

When planning your renovation, you will need to ensure there will eventually be a return on your investment. This may mean taking the tastes of potential buyers of your house into consideration, even if you are planning on living in your house for several years. It is also important to consider the other houses in your street, as you want to avoid lowering the value of your house by modifying your house in a style that is inconsistent with neighbouring properties.

An estate agent may be useful in helping you to estimate how much you would like to spend and what your returns will be, to ensure that you will recoup the amount that you spend.

So where do you start with your home improvements? Typically, homeowners wanting to carry out renovations would apply to their mortgage lender for a limit increase or "upstamp" on their existing mortgage to finance their renovation project. Some banks offer a supplementary loan, which is a separate loan to be repaid over what may be a different term to the existing home loan, but at the same interest rate.

When approaching your lender to secure extra finance for home improvements, you will need to have a reliable income, equity in your house and the ability to show that the home improvements you plan to undertake will add value to your property. Whatever the scope of your home improvement project, explore all of your finance options to make the choice that is right for you.

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