The best option to finance your home improvement will depend on your situation, but speaking to a mortgage advisor from Mortage123 should always be on your list first. What is the Best Option to Finance Your Home Improvements? Furthermore, the new mortgage may be at a better interest rate, saving you on repayments in the long run and better still there are cash incentives available from lenders as a thank you for switching.Ħ. Switching your mortgage to a new lender can secure a larger mortgage amount, i.e. You can lean more about the situations when a mortgage switcher may be beneficial on the following link Switching your mortgage to another lender can be a good idea even if you are not doing home improvements. Mortgage Switcher or Remortgage with Another Lender 85% of the property’s value is €255,000.Your age and the amount of time you want to borrow for.The current market value of your property.Your credit history and recent borrowings.Your current income and ability to afford increased repayments.The following factors will be important in your bank’s decision to top up your mortgage: Furthermore, you will be assessed similarly to when you first applied for your mortgage. However, this may not always be on offer. If you are looking for larger loan, a mortgage top-up from your bank may be a fast and easy option. If you are looking at doing an extension or big house improvements, you might look into a remortgage as the interest rates will be much lower.
For credit unions in the Republic of Ireland with a dedicated home improvement loan rate, the average loan rate was 7.7% APR and the lowest rate was 4.33% APR (Irish League of Credit Unions 2018). Credit Unions in Ireland cannot exceed 12% APR on personal loans. Interest Rates can range between 10-14% per annum for a personal loan depending on the amount and repayment term.Ĭredit Unions typically change a lot less and may give better repayment conditions. Personal bank loans are relatively fast to approve once you have a good credit history. If you have no mortgage on your home, and your home improvements will cost less than €50,000, this may be your only option. Personal or Credit Union Home Improvement Loans You can read more on housing grants and schemes on the following link. Insulation (30% of a home’s heat is lost through poorly insulated walls) Some home improvements which may qualify you for a grant are listed below: There are numerous conditions to qualify for each grant, but it might be worth it. There are various grants available to homeowners, so it might be worth your time to explore the various options. The SEAI (Sustainable Energy Authority of Ireland) is trying to play its part in helping Irish households become more environmentally sustainable.
Home improvements can potentially cost you nothing if you play your cards right. If you cannot qualify for a home improvement grant, generally a top-up of your existing mortgage may work out as the cheapest option.
The most common routes to home improvement financing include housing grants, personal bank loans, credit union loans, remortgage with a mortgage provider. The first place to start would be to get an idea of how and what finances are available to you and at what cost, i.e. Is it that new kitchen, extra bedroom or conservatory? Renovations can be stressful but getting the finance doesn’t have to be. If home improvements are already on your new year’s resolution list, read on. Home Improvement Loans for Your Renovation and Extension Plans