Easiest Way to Add Equity in Your Property

By: Anaya

Taking out a loan is a popular and easy way of making improvements to your home; whether you want to add an extension to your existing property, convert a room to a different use, or fit a new kitchen, loans available in the UK financial market suit the purpose. Not only these loans allow you to make changes and improvements to your home, but it can also increase your house value. The increase in equity of your house may be more than the original cost of the extension or improvement you add.

Research shows that home buyers in the UK are willing to pay substantial premiums for refurbished or improved properties. Adding special features can definitely up the sale price of your property.

Home improvement loans can be used to add value to your existing property in several different ways. First, and most obviously, buyers prefer houses to be ready to move. They want to move into furnished houses compared to the properties requiring investment or refurbishment. Older properties can also benefit a lot from modernization. Putting in a new kitchen or double-glazing an old house to save on energy bills can be a plus point when you are putting your home on the market. Buyers also love special features like solarium, extensions, and attic conversions, and these features increase your house value significantly and make it a much more desirable prospect in a crowded real estate market.

The first consideration when finding a competitive homeowner loan for renovation purpose is, of course, the loan interest rate itself. The interest rate may vary depending on your financial status, the amount being sought and the repayment period. It's worth looking around at the offers from several loan providers. The Internet is a useful tool in this regard, allowing you to compare prices at a glance and saving a lot of time and money. By comparing at different lending companies, you will quickly get an idea of which deals are competitive and which are less so. So, it is always worth shopping around in order to find a competitive loan deal, as the details can vary more than you might think.

However, you should look beyond the headline interest rate on offer and check the small print to avail a low rate homeowner loan. In particular, things to look out for include the options and penalties for early repayment, penalties for missed payments, and the details of any insurance scheme which you might wish to take to cover your repayments in case of accident, sickness or death. All of these factors definitely make your loan deal cheap and affordable.

Home Loans
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