Secured Loan

Many homeowners take out secured home improvement loans every year, and these loans provide an effective solution for those that want to improve the look and practicality of their homes, increase saleability, and add to the value of their homes.

A number of lenders offer some very competitive deals on home improvement loans, and homeowners can benefit on a number of levels by carrying out certain home improvements with the help of these loans.

Of course, it is important that you carry out the right type of home improvements in order to gain maximum investment value from one of these loans. With the right improvements you can enjoy improving the appearance of your home, greater practicality, and increased comfort. What's more you can also increase the value of your home, in some cases to the extent where you can actually recoup the value of the loan if and when you decide to sell up.

Home improvement loans can therefore be seen as an important investment for some homeowners. In order to ensure that you get the right deal on a home improvement loan you do need to shop around, as the interest rates charged on these loans can vary from one provider to another, and this can make a difference to the total amount that you have to repay as well as to the amount you have to pay each month. Other factors can also vary, such as the repayment periods offered and the amount that you are able to borrow.

With a secured homeowner loan the amount that you are able to borrow will depend upon the level of equity in your home amongst other things. Some lenders will enable you to borrow over and above the level of equity in your home, but you do need to be careful as this could put you at risk of falling into negative equity if house prices fall even with the added value from your home improvements. Other lenders will let you borrow up to the level of equity in your property, and some will allow you to borrow up to a set percentage of the level of equity in your home.

Repayment periods on these homeowner loans can also vary, and the longer the repayment period the lower your monthly repayments will be. Because these home improvement loans are secured in nature, you will find that many lenders will offer repayment periods of up to twenty five years or more, although this does depend on the individual lenders' criteria as well as on your circumstances.

As with any other loan you will need to meet certain criteria when it comes to your eligibility for a home improvement loan. Your equity, credit rating, financial and employment status, and age at the time that the loan term ends may be taken into account when determining your eligibility for different home improvement loan deals. Again, shopping around and comparing home improvement loans will help to ensure that you get the best deal possible based on your needs and circumstances.

You should make sure that you use your home improvement loan wisely in order to increase the value of your home as much as possible. Amongst the home improvements that can help to increase your property value are: replacement kitchen or bathroom, replacement windows, improved heating and insulation, adding extra space, loft conversions, and adding a conservatory.

Tom Smith
16th October 2007