home improvements

shosh_3107

We own our home but need to make substantial home improvements. whats the best wat to get the money? a straightforward loan?

foxy-stoat

shosh_3107 wrote: »

We own our home but need to make substantial home improvements. whats the best wat to get the money? a straightforward loan?

Yeah loan - or save.

Caz3121

we saved for 3 years after moving to save for renovation (was like saving for a deposit over again) used a couple of long 0% APR cards on top.

MEM62

shosh_3107 wrote: »

What's the best way to get the money?

Save.

What sums are we talking about?

shosh_3107

The amout is 25k possibly more

Ebe_Scrooge

shosh_3107 wrote: »

The amout is 25k possibly more

You'd be unlikely to get a personal loan for that amount (though it's not impossible). As previous posters have said, the best advice is to save up. However, if borrowing is your preferred approach, then additional borrowing against your mortgage may be an option. You'd need to speak to your mortgage company and see what they can offer, but home improvements are one thing that they generally are prepared to give you additional borrowing for.

Important points to bear in mind :
1. The APR on a mortgage will typically be less than a personal loan, but the term will be longer - you need to do your sums to see how much it's going to cost overall.
2. You can usually borrow additional funds for the remaining terms of your mortgage, or for a shorter period - obviously, the shorter period you borrow for, the less interest you'll pay. Again, you'll need to see what your mortgage provider can offer.
3. Perhaps most important of all - make absolutely sure you can afford the increased monthly payments on your mortgage - including contingency for if you should lose you job or anything. There's a very good reason why a mortgage will offer a lower APR than an unsecured loan - if you default on the payments, they can repossess your house.