The cost of buying a home in the southeast, especially in the London area, has become an unrealistic option for many homeowners in need of more room. This has led to a surge in planning applications not only in London and southeast but right across the UK, as families look to extend their homes as a more cost effective alternative.
Understandably, the first question that springs to mind for many is how they will pay for transforming their loft space. Depending on the scale of the work and proposed cost, some choose to remortgage their property, while others either borrow more from their existing lender or take out a personal loan.
Weighing up the options
For those who have managed to save up over the years, financing a loft conversion using your savings could be a good option for smaller projects. Whether or not the money is being put aside for alternative reasons will vary but it is always better to avoid taking on further debt where possible. A credit card can also be used as an alternative, or to ensure not all of the savings are spent.
For loft conversions priced under £25,000 an unsecured personal loan may prove to be the answer, especially for those who have a good credit rating. There are good rates available under 3% which makes repayment plans far more manageable, and by using the calculators provided by the loan companies on their websites, you can plan your finances with clarity.
Larger projects that are likely to cost over £25,000 will usually require a remortgage or another advance from your mortgage lender. Remortgaging is likely to make more sense for homeowners nearing the end of their existing deal this may allow them to remortgage to release extra equity.
Take your time
Whichever option you choose, be sure to get the right advice and avoid rushing into any hasty decisions that could backfire at a later date. A loft conversion adds so much value to your lifestyle and property but it is not worth placing yourself in financial difficulty if the cost proves to be prohibitive.