Secured loan 'could pay for home improvements'

Householders who are looking into major home improvements for their property have been advised to consider taking out a secured loan to pay for the work.

According to Christina Jordan of lovemoney.com, a loft conversion could be one such project, with the cost adding up to around £20,000.

She said a secured loan - which is sometimes referred to as a second charge mortgage - could be one way for a homeowner to pay for their DIY projects.

"They are sometimes cheaper than unsecured personal loans and you can usually choose your repayment term to run alongside your remaining mortgage term," she added.

However, Ms Jordan explained that it may now be difficult for a householder to be approved for a secured loan, because lenders have increased their rates since the credit crunch.

In a previous article for the website, Ms Jordan stated that the DIY project that adds the most value to a property is a room extension or a loft conversion.

Posted by David Steel

Date : 14/06/2010
Category: Flooring home improvement news