Best Ways To Pay For Your Home Improvement Projects
According to Lloyds Bank spending on DIY increased by 10% in 2014, taking it to its highest level since 2008.
Lloyd’s research reported:
- DIY spending reaches six year high of £5.5 billion
- Household spending on DIY reaches £5.5 billion in 2014.
- Spending increased by 10% in 2014, reaching highest levels since 2008.
- Total spending on home maintenance (DIY and tradesmen’s services) increased by 8% to £6.9 billion in 2014.
Andy Hulme, Lloyds Bank Mortgages Director, said:
“The latest figures provide further evidence that people are continuing to increase their spending on DIY and home improvements as the economyand housing market pick up, with DIY spending increasing by 10% in the last year. This followed a sharp fall in spending between 2007 and 2011, which reflected the worst of the economic and housing downturns during this period.”
So what is the best way to pay for all these home improvement projects? We divided the costs of home improvements into 3 sections; small, medium and large projects.
Small Jobs from £100 to £1000.
Smaller jobs and which some you should be able to do yourself like; decorating, new carpets, shower, fitted wardrobes, new internal doors or anything that is going to fall into the category of costing a few hundred pounds to £1000, these can be paid for 3 ways.
- Use your savings or save up till you can afford to pay for the improvements.
- Use your over draft and pay it back over a few months. Check out current account and your overdraft rates and terms before you do this to ensure you are happy with the fees.
- Use your credit card, especially if you can get 0% interest rate on purchases on your card
Note: Using an overdraft or a credit card can be expensive unless you get yourself a 0% deal.
Medium Sized Jobs from £1,000 to £8,000.
These jobs will properly require you to employee someone to do the work for you i.e.; fitting new double glazed windows, installing a small conservatory, or a new kitchen. The option to use your usual credit card is still viable for projects under the £5000 mark, but once you start spending over this amount of money, then consider applying for a credit card or loan that offers a permanently low rate (APR) this way you will be able to pay the debt back over a few years.
Another option is to see if the company that is supplying the goods offers finance. Many good double glazing companies offer this facility, as they are aware homeowners are looking for flexible ways to finance double glazing projects.
Note: When looking for suppliers look for companies that offer flexible ways to pay for your home improvements.
Larger Sized Jobs £10,000 – £20,000 plus
So with a project such as a large extension or a combination of smaller home improvement jobs you are going to require rather a lot of funds. Unless you are very lucky and have this sort of money in savings you will need to look at a few other options to pay for these improvements which include; re-mortgaging if you have sufficient equity in your property or you could take out a secured loan sometimes known as a second charge mortgage which are available to homeowners, and are secured on your property.
Note: You are putting your home at risk when you take out these types of loans, so it’s not a decision you should take lightly.