5 Things You Can Do with the Cheapest Home Improvement Loan

Melinda (Milli) Haine Melinda (Milli) Haine | Loan Underwriter

Continually low-interest rates over the last couple of years have been a boon to homeowners looking to borrow to make home improvements. Banks and building societies have been eager to offer customers good deals as they compete for business, resulting in some very attractive offers. So much so that finding the cheapest home improvement loan on the market is easier than it has ever been.

As a homeowner looking to make improvements yourself, how would you spend the money if you were able to get a cheap home improvement loan? There's no right or wrong answer here, as every homeowner has his or her own personal preferences. Any home improvements you make should be decided based on what makes you happy.

Here are five of the most common home improvements people tackle with bank financing:

1. Updating the Kitchen

Of all the possible home improvements, none is more popular among homeowners than updating the kitchen. What's more, getting the cheapest home improvement loan is a good way to finance something that could add significant value to a property when it comes time to sell. As any estate agent will tell you, the kitchen is the single most important factor that will determine whether a seller gets a good asking price for his or her home.

2. Remodelling the Bathroom

Second only to the kitchen in terms of its importance to buyers is the bathroom. In houses with multiple bathrooms, the main bathroom is usually the more important of them all. Remodelling the bathroom is something you should consider if you are planning to put money into the kitchen as well. The nice thing about renovating bathrooms is that doing so doesn't cost much money. You can do a lot with a little in this room, so borrowing a little extra to handle the bathroom along with the kitchen is doable for most people.

3. Converting A Loft

Retail loan numbers suggest that homeowners are preferring to remodel their existing homes rather than trying to move up the property ladder. A big part of that is remodelling to accommodate for growing families. For example, converting loft space into a bedroom provides more sleeping area for children without having to sell and buy something bigger. Converting lofts can be tricky, though, so homeowners have to do their due diligence in everything from local regulations to solid budgeting.

4. Adding a Level

At the higher end of home improvements is adding a level to an existing home in order to increase space. You would want the cheapest home improvement loan you could find given the fact that adding a level can be rather expensive. But if you want to expand and you have no room to build out, your only option is to build up. A lot of families are doing it these days.

5. Updating the Mechanics

Lastly, some families are using home-improvement loans to upgrade the mechanics in their houses. That would mean upgrading plumbing, electrical, and heating systems to bring them in line with modern standards. Why do this? There are plenty of reasons, including the desire to be more energy-efficient. Updated mechanics generally result in less money spent on energy, thereby reducing a family's utility bills and their carbon footprint.

The opportunities for home improvements are nearly limitless. If you are thinking of making improvements to your home, the idea is to get the cheapest home improvement loan you can find and then use the money to make your home just what you want to be.

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