How a Bad Credit Home Equity Loan Can Help You Add Value to Your Home

How a Bad Credit Home Equity Loan Can Help You Add Value to Your Home

With house prices set to remain static for months or years to come and mortgages still difficult to arrange, many people have made the decision to put off moving home for the foreseeable future.

Instead, many people have decided to invest in their own homes to improve the living space for themselves or their families. Such home improvement can also add value to their property.

The Best Home Improvements for Adding Value

There are a lot of different ways that you can add value to your home. One of the most common ways of increasing the sale price of your home is to increase the amount of living space that you have available. For example, while a loft conversion can cost up to £1,000 per square metre, research from Halifax has found that such a project should add an average of £24,981 to the value of your home.

In addition, you could consider converting your garage into another room or building a conservatory or extension. A conservatory is a cheaper option but you may be limited to the uses for the room. An extension can add significant value although you may need planning consent for the work.

Other popular home improvements include internal refits and redecoration. TV Property expert Phil Spencer believes that the kitchen should be the first room that you should consider refurbishing, whilst a new bathroom can also make your property more attractive to potential buyers.

Exterior improvements can also add value. Adding an off-road parking space in an urban area may cost under £1,000 but can add a considerable sum to the value of your home. A garage may also increase the selling price and family-friendly landscape gardens can also attract buyers.

One common factor to take into consideration between all these improvements is that they aren’t cheap. So, if you’re looking to meet the cost of work to your home, a home equity loan could be the perfect answer.

Home Equity Loans for People with Bad Credit Can Help You Meet the Cost of Your Project

One of the main advantages of home equity loans is that they are available to a wide range of applicants including the self-employed and people with poor credit. Indeed, home equity loans in the UK for adverse credit applicants remain readily available.

The reason for this is that you offer your home as security for the loan. As the lender has the collateral of your property to fall back on, they are more likely to consider an application from you if you have a less-than-perfect credit history.

A home equity loan allows you to borrow against the equity in your property. For example, if you have a home worth £150,000 and an outstanding mortgage of £90,000, you have £60,000 equity. A home equity loan allows you to borrow some or all of this. You make a single monthly repayment to the loan and you can typically spread your repayments over a term of 3 to 25 years.

Even if you have poor credit – perhaps you have a default or a County Court Judgment – a bad credit home equity loan can be a simple and affordable way of borrowing the money you need to undertake your home improvements and add value to your property.

To access the money tied in your home equity and get a great loan rate, book an appointment with the Mortgage Genie.

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