Your home is not just a place where you live, it is much more than that. It is where you build dreams, stay with your loved ones, and plan your life. Your home is a reflection of your personality. Over the years, your home might need to undergo some renovations but you may always not have the funds to do so. In such cases, taking a loan is the best decision ever.
These loans are like your regular home loans, but instead of using them for buying a new property, you are using them to renovate your existing home. If you go for a secured improvement loan, then you would need to keep the property as collateral against the borrowed amount. But, when you opt for an unsecured loan, they will be available for a higher rate of interest.
If you have a low credit score, then avail low credit score loan for which you will have to give a higher interest rate. When you take such loans for home improvement, it will allow you to turn your space into a more comfortable one without putting the excess burden on you at a given time. Compared to home loans, the documentation and overall process for home improvement loans are simpler.
You will have to give basic documents like identity proof, passport size photos, income proof, a property title deed, etc., to avail of the loan. Such an easy and fast procedure would enable you to start the project right away without making you wait for long (which happens in the case of personal loans). Also, with the refurbishment loan, you can quickly bridge small gaps that might have occurred in the funding of your project.
Whether you are a landlord, property developer, or investor, you can take a refurbishment loan or low credit score loan(if you have a low credit score) to renovate the property to sell it at a higher price or live in it comfortably. However, ensure that you are taking the loan only for the following purposes:
- Refurbishing a commercial or residential property.
- Minor aesthetic alteration in the property.
- Plumbing or drainage system works.
- Wiring or electrical works.
- For any kind of structural changes.
Depending on the type of refurbishment you wish to execute, the financier will either give you a light or heavy refurbishment loan. The light refurbishment loan does not need planning permission or building regulation checks. You would not need to have any previous experience in refurbishing properties to get this loan. Whereas for heavy refurbishment loans, there is a requirement for copies of planning and building regulations. The borrower needs to have some experience with renovations to get this loan as the work is more elaborate.