Almost half of homeowners (49%) are planning a home improvement project before Christmas, according to recent research. Each homeowner on average will spend £4,339 from their savings pot to pay for it.
Almost a quarter of people making home improvements are planning to draw on their savings (22%) with the remainder borrowing to fund the work.
A total in excess of £30bn is set to be spent on DIY projects in the next few months alone.
Decorating is the most favoured DIY job, with 41% of homeowners planning to get the paint brushes out before December arrives.
A savvy 18% of respondents are taking advantage of gardeners being quiet and commissioning landscaping projects to get their garden in shape for 2020.
And for 12% of respondents, upgrading the kitchen is the top priority, even if it adds to the domestic chaos during the summer months.
Using a second charge loan is likely to offer better rates of interest as the loan is secured on your property. Unsecured loans from high street banks and other sources can be notoriously expensive, we have all seen the rates charged by the so called “pay day” lenders.
The reason for a secured loan being more cost effective is due to the lender having to assess the risk. If you are a high-risk borrower they will need to offset the risk with higher interest rates. So, if you offer security, then the risk involved is much lower and the lender will offer far better rates.
This is indeed particularly useful for those special groups such as the self-employed, retired or those who have had past credit problems.
Why choose a second charge loan?
- Faster to complete than a traditional re-mortgage.
- Normally less fees.
- Very attractive interest rates.
- Loans are very flexible.
- Ability to retain current mortgage deal if on a low rate.
- Helps the self-employed
Need some assistance?
If you think this type of loan could assist you in your future planning it is very important to ensure you get the right one to suit you. There are many different lenders offering numerous second charge loans so please do call one of our advisers.