Whether it is to buy a new dream kitchen or bathroom or maybe to have a
conservatory or garage built any major home improvements will add to the its
value. But they don't come cheap. One way of paying for these improvements is to
take out a Home Improvement Loan. They can be for virtually anything related to
the home from as little as redecorating a room to building a 2-storey extension.
In general there are two types of Home Improvement Loan that you will want to
consider.
This is where your house (if you own it outright or are paying a mortgage on it)
and an unsecured loan. With a secured home improvement loan you will (usually)
get a lower rate of interest It will also be easier to get, if you have or have
had bad credit problems. The reason is that lender is taking less risk. If you
don't keep up the payments on the loan they could sell off your house to pay
your debts.
This is where there are no securities on the loan, in general they could credit
blacklist you if you miss payments(so you would have take a secured loan next
time!?) or send the boys round. However I doubt the Halifax or Nationwide would
do the latter. However in some cases they can chase you through the claims
court, and actually end up repossessing your house anyway, to get the loan
repaid!
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