There are several options available for financing a loft conversion in the UK. Here are some common ones:
- Personal Savings: Using your own savings is the most straightforward way to finance a loft conversion. If you have enough funds saved up, you can use them to cover the costs without incurring any debt or interest charges.
- Re-mortgaging: If you have built up equity in your home, you may consider re-mortgaging to release some of that equity. This involves refinancing your existing mortgage and borrowing additional funds based on the increased value of your property. You will need to consult with a mortgage advisor to determine if this option is viable for you.
- Home Improvement Loans: Many lenders offer specific loans for home improvements, including loft conversions. These loans are typically unsecured, meaning they don’t require collateral, but interest rates may be higher compared to secured loans. It’s important to shop around and compare different loan options to find the most favourable terms.
- Home Equity Loan: Another option is to take out a home equity loan, also known as a second mortgage. This involves borrowing against the equity you have in your property. The loan amount is typically based on the difference between the current value of your home and the amount you still owe on your mortgage. Interest rates for home equity loans tend to be lower than unsecured loans, but you are putting your property at risk if you fail to repay the loan.
- Personal Loans: If you have a good credit score, you may be eligible for a personal loan from a bank or other financial institution. Personal loans are unsecured and can be used for various purposes, including home improvements. Interest rates and repayment terms will vary depending on the lender and your creditworthiness.
- Government Grants and Schemes: Depending on your location and circumstances, there may be government grants or schemes available to assist with home improvements. These programs often have specific eligibility criteria and may target certain groups, such as low-income households or energy efficiency improvements. Research local government initiatives or consult with relevant authorities to explore potential options.
At Loft Living we offer our Customers ‘Fixed Price Quotes’ for a period of 90 days and so no matter which finance route you ultimately decide to take, you know exactly where you stand with no hidden extras. Contact us to find out more.