For most homeowners, there’s really no easier or more affordable way of extending a property than with a professional loft conversion. Most homes have a potentially huge amount of space that could be put too much better use, without the need for major remodelling or extension works. That said, a high-quality loft conversion doesn’t come cheap, hence the importance of carefully considering all available methods of financing the project.
The question being – which represents the best choice for you?
Get it right and a quality loft conversion can more than pay for itself. By increasing the overall value of your property by as much as 25%, a loft conversion can be one of the most outstanding long-term investments any homeowner can make. When it comes to financing these kinds of alterations, the preferred options for UK homeowners are as follows:
Re-mortgage
One readily available option for larger loans is re-mortgaging. Taken either as an extension on your current mortgage or a new mortgage if yours is already paid up, such loans can technically be offered with no upper limit. On the downside, any kind of mortgage deal can be time-consuming and difficult to organise, while at the same time being secured on your property which is used as security for the loan.
Unsecured personal loan
If the required sum comes in under £25,000, it could be easy and affordable to go with a standard personal loan. Unsecured loans are typically easy to access and carry fair interest rates, with no collateral being required. That said, qualification for personal loans of a relatively high nature can be tricky these days, as major banks and lenders continue tightening their criteria.
Bridging loans
An increasingly popular choice, bridging loans are great for those looking to borrow a moderate sum of money for a short period of time. For example, you could borrow £20,000 with a bridging loan, add £40,000 to the value of your home, sell-up as part of a planned relocation and pay back the loan within weeks or a few months. Simple, uncomplicated and fast access to the funds you need. Bridging loans are great where fast and full repayment is preferable.
Equity release
It’s also worth remembering just how much money there is tied up in the rest of the property as a whole. Equity release can typically be tailored to suit the needs of homeowners across the board, providing the perfect solution when funds are needed quickly. With equity release, there are very few qualification criteria to speak of and minimal complexities. With equity release, it’s all about the collateral.
Secured personal loan
Last but not least, a secured personal loan delivers exactly as it promises. The benefit of a secured loan being that it’s far easier to qualify for this type of financing, as credit history and current financial position etc. are not taken into account. Just as long as you have the required collateral, you can usually get a great deal.
For more information on any of our financial products or services, get in touch with the UK Property Finance customer service team today.