Home Improvement Loans in the UK

Posted by Alternative Bridging Corporation on 20th October 2023 -

Your client’s home is more than just a place to live; it’s an investment in their future and a reflection of their lifestyle.  Our home improvement loans can turn your clients dreams into a reality.

Over time, their needs and preferences may evolve, making home improvements and renovations a natural part of homeownership.   Whether it’s a fresh coat of paint, a modern kitchen upgrade, or a complete home makeover, transforming the living space can breathe new life into any property and enhance its value. 

In the UK, home improvement loans, often referred to as home refurbishment loans, are financial instruments.   They enable homeowners to turn their refurbishment dreams into reality. 

This blog post will explore the world of home improvement loans, their types, benefits.  Also, how they can help your client create the home they have always envisioned.  

We’ll also introduce Alternative Bridging Corporation’s specialised Light Refurbishment Loan and Heavy Refurbishment Loan.   Designed for property investors and developers. 

Why take out a home improvement loan? 

Home improvement loans provide the financial support needed to make changes that matter to your client.  From a kitchen remodel to adding an extra bedroom or creating a stunning outdoor living area, these loans can add value to any home. 

These loans not only improve quality of life but also boost your client’s property’s market value.  When it comes time to sell, these improvements can yield a higher return on investment. 

They also cover essential repairs and maintenance projects that may have been deferred.   Fixing structural issues, upgrading plumbing or electrical systems, and addressing roof or foundation concerns can safeguard your client’s home’s integrity. 

Making a home more energy-efficient not only reduces utility bills but also contributes to a greener planet.  Home improvement loans can fund projects like installing solar panels, upgrading insulation, or replacing old windows and doors. 

Types of home improvement loans in the UK 

A Home improvement loan comes in various forms to suit different needs and financial situations: 

Personal loans

These unsecured loans offer flexibility in terms of loan amounts and repayment schedules but may have higher interest rates. 

Bridging loans

Also known as first or second mortgages, these loans are secured by the home’s equity and offer lower interest rates.  This makes them suitable for larger renovation projects. 

Home Equity Lines of Credit (HELOC)

HELOCs are revolving lines of credit that homeowners can access as needed. They are secured by the home’s equity and offer flexibility in borrowing. 

Government-backed loans

Some UK government programs offer renovation or home improvement loan schemes with favourable terms, often encouraging energy-efficient upgrades or improvements to historic properties.
 

Choosing the right home improvement loan 

Selecting the most suitable home improvement loan depends on the project’s scope, your client’s financial situation, and their long-term goals. Your client will need to consider factors such as the project size, budget, repayment ability and interest rates when making their choice. 

Alternative Bridging Corporation’s specialised refurbishment loans 

For property investors and developers in the UK looking to undertake light and heavy refurbishments.  Alternative Bridging Corporation offers specialised Light Refurbishment Loans and Heavy Refurbishment Loans.  These loans are tailored to help investors and developers maximise the potential of their property projects: 

Light Refurbishment Loan

Is your client looking to improve the value of their property without having to make major structural changes? If so, our Light Refurbishment Bridging Loancould be the perfect solution for them. 

Our Light Refurbishment Bridging Loans are designed for less extensive renovations that do not require planning permission. These loans can provide your client with the funds they need to improve their property quickly and easily.   So, they can start enjoying the benefits of their investment sooner. 

Here are some of the things our light refurbishment bridging loan can be used for:  

• Kitchen and bathroom renovations
• Redecoration
• Changing room layouts
• Energy efficiency improvements
• Landlord refurbishments
• Student accommodation refurbishments
• HMO refurbishments

We can also provide funding for the purchase of a property that requires light refurbishment.  This can be a great way for your clients to get a foot on the property ladder or to add to their investment portfolio. 

We offer competitive interest rates and repayment terms, so you can find a solution that works for your client. 

Heavy Refurbishment Loan

Our heavy refurbishment bridging loans are designed to provide your clients with the funding they need to carry out the necessary renovation.  This could, include structural alterations and extensions. We can also help them with the planning permission process, if required.   We understand that every project is different, so we work with your clients to create a tailored solution that meets their specific needs. We will review their contractor’s proposals, plans, and elevations individually, and we will also carry out the usual due diligence. 

Once your client’s loan is approved, we will fund the total cost of the project, including interest.  We will also agree at the outset the amount of the purchase loan and the final release available on completion of the works. 

Our asset managers will remain in close contact throughout the project.  They will visit the site as necessary to ensure that stage advances are agreed and paid promptly, and that any problems are resolved quickly. 

Interest is funded within the facility, and the rate of interest is reduced at practical completion. The loan is then repaid from either the proceeds of sale or refinance, or it can be transferred to an Alternative Term Loan. 

Wrapping up 

Whether your clients are considering a home improvement project to enhance their living space or planning a property refurbishment to increase their property portfolio’s value, financing options are available to bring their vision to life. Home improvement loans and refurbishment finance are valuable tools that can turn their refurb dreams into reality. 

When starting on a refurbishment journey, it’s essential to assess your client’s project’s scope, budget and financing needs.   By choosing the right loan type and lender, such as Alternative Bridging Corporation, you can help your client start their refurbishment journey with confidence.   Knowing that their property is on its way to becoming the space they’ve always dreamed of.   

Read more about our refurbishment loans.

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