A home furnishing loan is used to cover the costs of improving your home on a relatively small scale. This relates to the purchase of maintenance materials or tools, or updating interior décor, as opposed to paying for large-scale extensions.
Home furnishing loans can be invested in your property in the following ways:
This may be something as simple as redecorating or modernising existing rooms, or it could be a more structural approach, such as waterproofing trouble areas or improving heating and ventilation systems.
Maintenance could be a cosmetic update to the décor or an essential repair to the roof. Either way, a home improvement loan can be used as an investment to prevent costly surprises in the future.
Additional living space
This does not always mean building an extension, for which a secured loan or second mortgage may be more appropriate. Transforming existing, unused space, such as turning a basement into a cinema room or an unused attic into an extra bedroom, can create additional living areas.
Secure homes are more important than ever, which is why more and more people are investing their home furnishing loan into enhanced security features on their windows and doors.
Investing in your home is likely to save you money in the future as you are keeping on top of any potential problems, as well as taking advantage of developments in energy efficiency solutions. A home furnishing loan can be extremely helpful in funding the labour, tools and materials needed to carry out this work. Hopefully, the savings you make in utility bills can recoup some of the costs of the home furnishing loan.
How much can I borrow?
A home furnishing loan is usually spent on relatively low cost purchases, as opposed to costly home extensions, so you don’t need to borrow a large amount. A home furnishing loan of just £1,000 can be taken out over 6 months.
Can the repayments be variable?
Home furnishing loans are usually set at a fixed interest rate which allows for more effective monthly budgeting, as the amount to be repaid each month remains the same.
Are there hidden costs?
Home furnishing loans are available at a fixed rate over an agreed term with no associated arrangement fees or hidden charges.