A secured home improvement loan is mainly available for home improvement purposes. As the name suggests, this loan is secured on borrowers’ property. Thus, to avail this loan, borrowers need to pledge something to lenders. As a security, borrowers can use any of their valuable objects such as, home, automobile, jewelry and so on.
With a secured home improvement loan, a borrower can avail the amount ranging from £5000-£75000. A worthy security can facilitate borrowers to borrow a higher amount. Basically, the borrowed amount, borrowers’ income and lenders’ policies determine the repayment period of this loan. But it is seen that these loans are offered for 5-25 years.
With this loan, borrowers can improve their home without burning their pocket. Seems unbelievable? But it is true. Since, these loans are secured on borrowers’ property; hence, the risk of lending amount is very less. And due to this reason, lenders do not hesitate to offer a secured home improvement loan at a reasonable interest rate. Moreover, if you use a high valuable security or if your credit score is outstanding, you will get some extra edge in getting the amount at a better interest rate.
By availing a secured home improvement loan, a borrower can fulfill various purposes. Some of them are like,
- Expanding home by adding new rooms
- Landscaping for garden
- Repairing or renovating home
- Refurnishing home and so on.
Borrowers with a bad credit score can also get the benefit of a secured home improvement loan. Usually, availing any sort of is quite tough for bad credit borrowers. But, as this loan is secured on borrowers’ property; hence, a borrower having bad credit score can apply for loans for improving his home. It is applicable for all types of bad credit cases like, CCJs, IVAs, arrear, default, bankruptcy and so on.
Now with a secured home improvement loan, a borrower can improve his home within his budget.
Summary
A secured home improvement loan is available against a security. With this loan, borrowers can improve their home. Borrowers with bad credit score can also get the benefit of this loan.