1. Adding an extra room in your loft or just
routine maintenance on an aging property is
expensive and often the best way to
proceed is by applying for a home
improvement loan. Very few people want to
attempt many of these home improvements
themselves so tradesmen such as
electricians, plumbers and carpenters will
need to be employed.
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2. Bear in mind that home improvement loans are just for that and as
such two options are available; secured loans and those that do not
require equity A loan that does not require equity allows new
homeowners to apply even if they just bought their home
3. Fortunately for the homeowner, a non-equity based financing
arrangement is available with a fifteen year repayment term if
required The eligibility for finance without equity can depend on the
combined household income, which should not exceed the county
limit where the property is located
4.
5. The eligibility of the borrower, the property type and the
improvements planned are all considered because this type of loan
may only have minimal documentation and is relatively easy to
process Remember a secured home improvement loan is using
spare equity in your property but this course of action is not for
everyone
6. The upside to this type of secured loan is it's available at more
favorable rates of interest but is not arranged as a second mortgage
on the property loandirectorysg.com The lender will only provide
funds for a secured loan based on the current equity available in
your property
7. The lenders need to be assured that there is in fact equity in your
property and that any loans already outstanding will not interfere with
any new arrangement made by them if they agree to a loan After
this has taken place, the lenders will put a package forward which
may not necessarily be for the full amount the homeowner wanted
8.
9. Usually, finance companies will lend you a percentage of the
assessed value of your house but some lenders can lend as high as
125 percent of your home's equity Any loan secured on a property
has a risk attached and that is especially true when the loan is large
as payments can become difficult to make at which point the
creditors can move in and take your home away
10. Do not arrange a home improvement loan if it is going to cause any
financial strain especially if it is only for remodeling but restrict the
amount to cover for important repairs or restoration only
