In the last few years, there has been a tremendous increase in the house prices in the UK. This is because of vibrant economy and low rates of interest. The number of first time buyers has increased. This has created a gap between demand and supply of houses in the UK because of which, there is a rise in the house prices.
You are lucky if you are a homeowner since you are getting richer every day. Besides rising house prices, another thing that can appreciate the value of your house is home improvement loans . When you remodel or renovate your house, you change the way your house looks. You may either go for a slight change such as wall painting, wall papering, flooring, etc. or a complete makeover of your house. Whatever it is, home improvement is bound to make improvements to your house.
There has been an increase in the do-it-yourself home improvement in the last few years. Small do-it-yourself projects can be funded by savings and credit cards. Try to use your savings because credit cards charge very high interest rates. To finance a large home improvement project, you will need to take out a home improvement loan .
There are a variety of loans that can be used to carry out home improvement:
Secured loans are given against the security of a property. The borrower has to offer his property as collateral. If the borrower defaults in the repayment, the lender may repossess the property. The rates of interest on secured loans are lower than the rates on unsecured loans.
Unsecured loans do not require collateral. The borrower’s property does not run the risk of repossession. Unsecured loans carry high rates of interest.
Both secured and unsecured loans can be fixed or variable. In case of fixed rate loans, the rate of interest remains the same throughout the loan period, whereas the same keeps on fluctuating in case of variable rate loans.
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