How You Can Finance Your Home Renovation

Whatever reason you have chosen to renovate your home, it will be a good idea. Changes to your home environment are good for you – they stop you from becoming bored with where you live and dissatisfied with your surroundings.


Photos By: Living Etc.

You might choose to renovate because you want to sell your home more quickly, or at a better price. You might just have moved in, and want to put your own mark on the place. The reasons for renovation are endless, but one thing will always hold true; it will cost money. It might be a little, or it could be a lot, but you will need to pay out at least for materials, and perhaps for labor too. Once you see how beautiful your home looks (especially when it is finished off with our stunning door handles) it will be worth it, so here are some of the ways you can finance your renovation to get to that point.

Credit Card

Not everyone likes the idea of a credit card but, used carefully and correctly, they can be an ideal way to pay for your home renovation, and they can certainly be the cheapest when you add up the interest on their balances.

If you already have a credit card, then take a look at the balance and the interest rate; it may already have enough credit on it, with a good interest rate, and therefore it could be perfect for purchasing what you need for your remodelling job. However, if there is not much money left on it, or if the interest rate is fairly high, then it will be better to apply for a new one. You can transfer the balance of the other card if there will still be enough credit to buy what you need, and this will save you money overall.

Ideally, you need a card that has a low or zero introductory interest deal, allowing you to purchase what you need and pay it off quickly, without incurring interest charges.

A Loan

A credit card will be fine for smaller projects, but larger ones may require something more like a personal loan. This will save you from applying for lots of different credit cards to cover the cost, which will help your credit rating stay at a good level – too many applications for credit in a short space of time will negatively affect your credit score and can make it difficult to get more credit in the future should you need it.

There will be a loan to suit you and your circumstances, whether it’s a standard loan from your usual bank, a loan suitable for those with poor credit, or no credit check instant approval loans for when you need the money quickly and easily. Whatever you need, there will be someone out there who can help you, so your renovation dreams shouldn’t go off track. Just remember, though, that you need to be sure you can pay the money back before you get a loan, otherwise you could find yourself in trouble.


If you have a mortgage on your property, then you can potentially remortgage and take out the equity (or some of it) to use to pay for the renovations and changes you want to make. How much you can take out will depend on how much your property is worth, and the difference between that valuation and the price you paid for it. Your mortgage company will need to know this information as it will determine whether they can lend you the extra money required.

A remortgage works by totally paying off your existing mortgage and then starting a new mortgage at the higher rate. You can then borrow against the equity in your property. If you are intending to sell your home in the near future, this might not be a good idea as you won’t have time to make the money back again, even with the renovations, and you could lose out. However, if you’re not planning on moving in the near future, it could pay off nicely, giving you the renovation you want and allowing you time to build up equity in your property once more.

The important thing to remember when you are remortgaging is not to be tempted to borrow more than you actually need just because there is a good amount of equity in your property – if you do that, it will be a waste. Not only will you have to pay that money back anyway, but you will reduce the equity in your property for no reason, which could make the entire mortgage take much longer to pay off, or even make it impossible to move home if you find you end up in negative equity.

Borrow From Friends And Family

For some, borrowing the money required to make their home look wonderful from friends and family is the ideal situation. It won’t work for everyone, but if credit is difficult to obtain for any reason, and if your friends and family won’t put themselves into financial difficulties to help you, then it can be a great way to work. Your credit score won’t be affected in any way, and it is likely that the interest that your friends charge will be much lower than you would find with a bank or other lender, and of course, they might not charge any interest at all.

In order to make sure that this lending of money doesn’t cause you to fall out with one another, it is wise to sign a contract confirming how much you are borrowing, the interest rate, and when it is to be paid back by. That way, you can reassure the people lending you money that they will get it back, and you can continue with your normal relationship without the idea of the loan hanging over you.

A really great idea is to set up automatic payments so you won’t miss any of them and you can show just how serious you are about paying the money back.