Home Improvement

Home Improvement

I

mproving your home is an ambition of many homeowners in the UK. Making it happen is another issue entirely. You have to get the money together, find the right people to manage the project, and then complete the project. Only then can you sit back and enjoy the fruits of your labour.

If you have never managed a home improvement project before, you need to know the main part of home improvement is to get the funding for it. You are going to learn about how you can acquire funding and how you can bring your dream home a step closer.

People are easily intimidated when they decorate their home. They think it has to be one way. But there's no one way. It's your way, your style. At the end of the day, you have to live there. It's your cocoon, your nest. You have to be happy in it.

Bryan Batt.

Know Your Project 

To begin with, you should think about what you want to achieve and what you want to accomplish. Do you want to convert your loft or do you want a new extension? Depending on the project, you may also need to consider planning permission and the likelihood of acquiring this planning permission.

The type of project will dictate exactly how much you will have to pay and how much disruption the project will cause to your daily life. These are both important considerations before giving something the green light.

Can You Get a Loan?

Finding home improvement loans from certain lenders is possible. These are few and far between, though, and they are far from easy to get. Most lenders will only cover a part of the cost, with you covering the other part. You will also have to provide proof of income and possess a good credit record.

Is it worth applying for a loan with a poor credit score?

Generally, your options are limited if you do not have a good credit score. There is little you can do to persuade a lender to give you money without this score. You may still be able to acquire a loan, but the amount will be smaller, and the interest rates will be higher.

Sometimes you can offer up your house as a security to get a loan. If you are sure that you can pay the money back, you can opt for it, but be aware of the risks. If something happens, you will have your home repossessed, and there is nothing you can do about it.

Saving for Success

The majority of home improvement projects are self-funded. Families will save up over an extended period of time so they can get the dream home they want. This is a better option if you are willing to wait because it means you do not have to spend more on paying interest rates. In the long-term, you will always pay less for home improvement via this method.

Create a custom savings plan for your home to get started. For this, you need to have a financial budget. A financial budget will detail your incomings and outgoings. Make sure you include any debts and any luxuries so that you can get an accurate snapshot of your financial situation.

Now you can cut luxuries out to save money, or you can choose to sit with the excess you already have. Some families decide to cut down to the bare bones so they can get their home improvement job done faster.

Should You Ever Pay on a Credit Card?

There are those with high credit scores who have the option of taking out thousands of pounds out at a time. We would not recommend using a credit card to fund this type of project. Credit cards tend to be poor options for long-term purchases purely because the interest rates that come with them are higher than you would find from most lenders.

On top of that, you should refrain from taking out more than 35% of your overall credit limit. For banks, this is a sign that you are financially irresponsible, and you have come to rely on these cards to pay your way in the world. Regardless of the reality of the situation, paying on a credit card will lead to your credit score taking a hit.

For these two reasons, you should avoid using a credit card for home improvement projects.

Complete Your Project in Stages

There is no reason why you have to avoid redecorating the bathroom because you do not have the money to refit everything now. Completing your project in stages is a viable option as you save up. For a lot of families, this can prevent them from needing to take out a loan.

Completing a project in stages should be done only with careful planning in mind. Within a large project, there are natural cut-off points. For example, you could not stop rewiring the living room in the middle of the process because you did not have the money to continue to pay the electrician’s hourly rate. That would be dangerous. 

But you can stop after replacing the kitchen floor until you have enough money to replace the sink and the cupboards. Think about how you can split your project up into more manageable pieces.

Should You DIY to Save Money?

It depends on what you are qualified for and what you have experience in. You should not try to retile the roof if your only experience of DIY is putting up a shelf. Take an honest look at your skillset and what you feel confident in doing. You can save a lot of money through performing certain tasks without the help of a professional.

At the same time, you should not compromise on quality just because you want to save money. A poorly-finished job will only come back to bite you later. There are hundreds of horror stories relating to unqualified people carrying out home improvement work only to have to call in a professional later.

To complete your home improvement project, make sure that your financial plan is sustainable and that you have the right person for the job. If you are not completely ready yet, do not initiate the project. It is that simple!