Refreshing and renovating your home can be seen as an aspirational goal, but it can be hard to find the funds to achieve this. It is important to plan and set a budget before you begin so that you know how much you will need.
There are some ways for you to boost your renovation funds. Here are 4 ways for you to consider.
Home equity release
Releasing equity in your home is usually only an option if you are 55 or older and are a homeowner. If you are successful, you may be able to release a lot of tax-free cash that you can use for a renovation.
There are two main types of equity release – lifetime mortgage and home reversion. Lifetime mortgages are the more popular option as you do not have to make any repayments until you have passed or are in long-term care. There are fees associated with the application, so it is worth researching before you commit. Use an equity release calculator to see how much you could get from your house.
Personal savings and investments
Many families have a savings account for rainy days or in case of an emergency. Although it will take a great deal of planning, saving for a renovation is a safe option. By using savings you are ensuring that you are keeping out of debt from this project.
If you are someone who plays the stock market or makes wise investments in profitable industries, you may be able to use the profits from that to improve your home.
Remember to thoroughly vet any tradespeople you use to make sure you aren’t the victim of a scam and lose your money. If you do meet any unscrupulous contractors, report them to Action Fraud and the police.
Refinancing your mortgage
If you have an option to refinance your existing mortgage, then it is worth looking into. If your renovation plans coincide with your fixed-term rate coming to an end, it is the ideal time to switch to a different provider anyway.
Refinancing will depend on the value of your property, the equity you have in your home and your financial circumstances. If those things are all in order, you may be able to increase your mortgage and use the additional amount to pay for renovations.
Government grants and assistance
There are different rules across the various local authorities in this country, but you may be eligible for help with your home improvement.
Some may be able to help with a grant, whereas others offer to provide cheap labour, tools or materials. Some councils will also be able to offer discounts on structural surveys as well as having a list of trusted tradesmen.
Get in contact with your local council office to see if you will be eligible for any help or funding.
