Best Ways to Pay for Home Improvements

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Ways to Pay for Home Improvements
Whether you love the house you are at right now and just wish to make it more functional and attractive or you have bought a fixer-upper you plan to slowly improve you must need money to make your home improvement magic happen.If your project is a little one (such as painting a powder room or building a bookcase or something like that), you don't need a lot of cash.But if you have planed to replace all your floors at once, gut and remodel your kitchen or create a master suite on your attic level, you would need to spend as much time evaluating your financial options as you do on social networking sites.So her we are going to share some excellent ways to pay for home improvements.

Use Your Savings

The good thing about using your savings for home improvements, rather than for holidays or a new car as per example, is that  as well as making your environment a nicer place  you're making an investment. The right improvements can increase the value of your home exponentially. For instance, a modern bathroom can add as much as 3% to its price tag, where a decent new kitchen can add 5%, according to estimates.

If you have cash to hand, using it to fund your home improvements can be the most sensible option especially with savings rates so low. However, if your money is tied up in a fixed rate bond for example, it may not be worth paying the associated penalty to get the cash out ,if you are able to get it out at all. Remember also, that if you withdraw funds from a cash ISA, you would not be able to top up your allowance again within the same tax year.

The main downside to paying directly with cash, however, is that you wouldn't be protected should anything go wrong, such as the company carrying out the work going bust or even turning out to be fraudsters. So,  if this is just the deposit, putting the cost on a credit card and then using your cash to pay it off is a great idea, as we go on to explain.

Putting this on a 0%  Purchase Credit Card

If you use a credit card to pay for your refurb and the work turns out be faulty or even never gets completed because the company goes bust for example, you would be able to claim the money back from your card provider.

This is the case even if you only pay for the deposit on your card so long as the total bill comes to between £100 and £60,260, you'd be covered under the terms of either the Consumer Credit Act 1974 or the more recent Consumer Credit Directive. Once you have used your card, this protection is locked in place.

If you haven't got the money squirreled away in savings to clear the balance with, you should get a card that charges an introductory 0% on purchases. This would enable you to clear the cost (preferably by monthly direct debit) during this interest-free period.

However, if you're planning on clearing your debt, sooner, why not throw in some cashback instead. 

Personal Loans

If you are planning for major improvements such as converting the loft or adding a conservatory then you could easily be looking at spending upwards of £10,000 - in which case a personal loan could be the way to fund it.

Use Your Home

If you're planning on building an extension then this may be worth approaching your mortgage lender to see if you can free up some cash with a further advance. However, borrowing extra against the value of your property is not a decision to be taken lightly. The additional funds may not be offered at the same rate as the rest of your mortgage as per example, and could even tie you in for a certain period. If this doesn't tally with any tie-ins on your main mortgage, things can get tricky when it comes to renewing your deal.

If however, your current mortgage deal is coming to an end, you could move the whole loan  plus the extra required for the work - to one lower rate. For more options, compare a range of products on our mortgage channel.

The financing option you choose for a home improvement projects would be one which fits your budget now and in the future, and your choice should also limit the amount of interest you’ll pay for your home improvements.

Hope you enjoyed this.Don't forget to share your view through comments.


  1. great tips to consider especially for those who are planning on home improvements project soon.

  2. Home improvement is my next project after I settle all my outstanding bills next year. My plan is to use my SSS loan for it.

  3. We are planning have our parent's house renovated. Thanks for sharing such informative method.