Transforming your home into the place of your dreams often requires a significant financial investment. A personal loan for home improvements could be the key to turning those dreams into reality. Whether you’re planning a major renovation or a simple refresh, here’s how a personal loan can help you enhance your living space.

The power of personal loans for home improvements

Personal loans offer a financing option if you’re looking to upgrade your property. Here’s why they might be the right choice for your home improvement project:

• Fixed rates and payments: With fixed interest rates, you’ll have predictable monthly payments throughout the life of the loan.
• Quick funding: Personal loans are often paid out quickly, allowing you to start your home improvement project sooner.
• You may qualify for a personal loan that covers the cost of your project, without having to secure the loan against your home, this is dependent on your personal circumstances and the maximum loan value for the lender (which can differ by lender).

Steps to take before applying for a home improvement loan:

• Plan your project: Outline the scope of your home improvement project, including estimated costs and your desired outcomes.
• Budget accordingly: Determine how much you can afford to borrow without overextending your finances.
• Compare lenders: At V12 Personal Finance, we work with a trusted panel of lenders so you can see all of your offers in one place. Once you’ve chosen a lender, you can apply for a loan amount that covers the amount of your project.

Using personal loans for various home improvement projects:

Kitchen remodel: Create the culinary space you’ve always wanted, from modern appliances to custom cabinetry.

Bathroom upgrade: Enhance your bathroom with new fixtures, tiling, or even an expansion.

Energy-efficient Improvements: Install solar panels or upgrade to energy-efficient windows and appliances.

Outdoor living: Expand your living space outdoors with a new deck, patio, or landscaping.

Advantages of personal loans for home improvements:

Flexibility: Use the loan funds for any home improvement project you choose.

Potential Home Value Increase: Strategic home improvements could increase the value of your property.

Things to consider:

• Interest rates: Use a comparison site such as the one V12 Personal Finance offer or another of your choice and compare loan interest rates, making sure the repayment amounts are manageable within your budget.
• Repayment term: Consider how the loan’s term will affect your monthly payments and total interest paid.
• Project return on investment: Return on Investment (ROI for short) simply means, the value added to your home as a result of work completed on it, compared to the price you paid. Look at how much you are spending and whether any changes you make could add value to your property.  Some home improvements offer a better return on investment (ROI)than others. Think about whether you want to prioritise projects that add the most value.
• Lenders may provide you with details of loans secured against your home. If choosing a secured loan, your home is at risk, think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on a mortgage or any other debt secured on it.
• Secured loans will attract a broker fee and a lender fee upon completion of the loan and these may be added to the amount borrowed. Full details will be provided by the credit broker.

Conclusion

Personal loans for home improvements offer a straightforward way to finance your renovations. They provide the funds you need to make significant changes to your home, potentially increasing its value and enhancing your quality of life. As with any financial decision, it’s wise to do thorough research and consider your long-term financial health before proceeding.

Home improvement projects can be exciting and rewarding, but they also require careful planning and financial consideration. Personal loans can be a great tool to help you achieve your vision for your home, but is important that you ensure it is affordable.

Find out more and check your eligibility without harming your credit score here. 

Credit is subject to status. You must be a UK resident aged 18 and over. Regular income provable. Minimum loan term is 12 months. If you are a homeowner, V12 Personal Finance, which is a trading name of V12 Retail Finance Limited, may provide you with details of loans secured against your home. Your home may be repossessed if you do not keep up repayments on a mortgage or any other debt secured on it. The % APR rate you will be offered is dependent on your personal circumstances. If consolidating existing borrowing, you may extend the term and increase the total amount you repay. Secured Loans will attract a broker fee and a lender fee upon completion of the loan and these may be added to the amount borrowed. Full details will be provided by the credit broker.

V12 Personal Finance is a trading name of V12 Retail Finance Limited. V12 Retail Finance Limited is a credit broker and not a lender. V12 Personal Finance introduces to one or more lenders or credit brokers, for which we will receive a fee or commission payment for each successful paid out loan. The amount of the fee or commission payment will vary depending on the product chosen and the amount of credit taken out.