If you’re planning an upcoming home renovation project such as a bathroom or kitchen, you’ll quickly realise that funds disappear when not managed properly. Budgeting your project down to the last “nut & bolt” can be a menial task, but this attention to detail can save you headaches in the long term.
In addition, sourcing financial support from a number of widely available options can help spread the cost of your project, allowing you concentrate on the finish rather than the finance. Here are 5 top ways of making your project more affordable:
A Home Improvement Loan
Many people turn to a home improvement loan when it comes to financing a renovation, with many banks offering competitive products that are quick and easy to apply for. They work in the same way a personal loan would, with different banks offering different deals depending on your circumstances. As with anything, shop around for the best possible interest rates as they can vary from 5% – 8% depending on your credit rating. Providing you tick all the boxes, you’ll get the money straight away so your project can be finished quickly and efficiently.
With an abundance of suppliers in the marketplace, competition has never been stronger. Many retailers now offer their own versions of finance deals to help make your dream kitchen or bathroom become a reality quicker than you’d expect. The interest rates are often very low making retailer finance an affordable option for anyone, with some of the larger retailers offering 0% finance on complete supply & fit options.
Many of us would instantly turn our noses up at credit cards, branded with the image of high interest rates and unrealistic minimum payment options. However, credit card companies have changed their methods in a fast track way to attract new customers, offering 0% interest on purchases for those with strong credit ratings. Be sure to pay off your amount within the grace period (or switch it to another card) as you may face interest rates of up to 25%.
Using your mortgage
The previously mentioned options are all quick and easy ways of getting your project started, but some people now are utilising low interest rates as a way of paying for large projects. By re-mortgaging your home to suit a better finance deal, you’ll often find yourself with a larger source of funds to work with. This isn’t a quick option however as the entire process can take time, not to mention potential fees which can be upwards of £500.00.
Plan & Save
At the risk of not confiding with the ways of modern society, you could always plan your project well in advance, using good old fashioned saving to gather the necessary funds. It’s the way it’s been done for many years before the dawn of credit! Put away a little each month for a set period of time to pay for your renovation, leaving no trail of credit repayments when you settle down to your first hot soak in your new bathroom. There is no better feeling!