Are you tired of putting off those home renovation projects? Every time, managing the overall cost seems tough. Either your savings fall short, or you cannot qualify for a suitable amount of loan amount.
Ever applied for a home improvement loan? With this option, you can even think of making your home energy efficient. What is so special about these loans that you will not have to worry about the cost?
You can get the best fixed rate on these loans even for the chosen loan amount. Be smart enough to select an amount that can fulfil the need and can suit your repayment potential. No need to drain your emergency savings on these urgent repairs, as loans at fair rates can be obtained.
These are also personal loans that you can get to fund home repairs or urgent home upgrades. When you apply for these loans with direct lenders like MyCreditBucks, you can get affordable offers. There is no need for you to go out of your way to afford these loans.
Here are a few things about a home improvement loan in Ireland you must know.
Kitchen renovation? New roof? New extension? There can be hundreds of reasons for you to get a loan. Even big renovation plans do not need to wait for a long time.
Many of you might consider getting these projects done before the festive season. Besides, there might be some people who always keep waiting for the right time until something major happens. Basically, they need a reality check, which oftentimes turns out to be an expensive affair.
You can plan and complete this renovation work just in time with the help of these loans.
You can get these loans either in a secured or an unsecured format. The second one is the most preferred loan option and is perfect for a small budget renovation. Find out how they differ from each other.
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Secured home improvement loans |
Unsecured home improvement loans |
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Asset-backed financing option |
Assets are not part of the borrowing process |
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Higher borrowing range |
Usually lower borrowing range |
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Repayment can stretch up to several years |
Monthly repayments are possible |
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Risk of losing asset is there |
No risk because no asset involvement |
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Approval takes longer because of paperwork |
Minimal paperwork leads to faster approval |
You can pay back loans in fixed monthly payments. Each payment will include a portion of the principal amount along with interest rates. You can opt for direct debit of the monthly payment so that you can repay on time.
An example showing how the overall cost differs depending on the length of the term, i.e. 10 years and 15 years
You might be taking out € 30,000 at 6.5% APR
You have opted for a fixed monthly repayment pattern
Total interest paid for 10-year home improvement loan = € 11,038
Total interest paid for 15-year home improvement loan = € 17,061
You can clearly see the difference. Thus, by choosing the right repayment term, you can manage the burden of interest rates. Get pre-approved and find out the right amount, rate and term.
These loans present an easy application procedure. Unlike the traditional approach, here only online steps need to be completed. Documentation also remains basic, and thus, this application process will be the least time-consuming for you.
The steps you must pursue to apply for these loans are:
Loans are available to help you get some crucial repairs done on time. It is not that you can completely depend on them. You should not use loans to cover the entire cost of repair.
Finalise how much you should spend. Check the amount that can be provided from your end. Understand your repaying capacity and apply for loans.
This facility lets you have a glimpse of the actual loan offer you can get. You do not have to go through hard checks to get pre-approved. However, your affordability will have more weightage.
You can pre-qualify with multiple lenders at the same time. This ensures that you can compare loan offers obtained with different price tags. Utilise it to get the best offer.
Once you agree to accept the pre-approved offer, the lender will take you to the next steps. This involves receipt of the loan agreement. You have to review it to understand if home improvement loan rates and terms are suitable for you or not.
Go through the fee structure to see how you can manage loan repayment. Sign on it only when you are 100% sure.
After your acceptance, the lender will not take longer to process your application. Their prime concern will be to make sure that loan repayments are completed on time. Once ascertain this, they will not have much time to transfer the approved money.
You can use the home improvement loan calculator to determine the cost. Alter the loan amount and term accordingly to see how much interest rates you have to pay. Certain things to note about the interest rates.
A green home improvement loan is a special funding arrangement meant to sponsor the cost of introducing energy-efficient upgrades to your properties. You must confirm that at least 75% of the funds will be utilised for environment-friendly improvement of your home.
The various ways these loans can help you transform your home into an energy-efficient abode are:
Prevent yourself from using these loans for any other random purpose other than energy-efficient upgrades.
Home improvement works, if left unattended for a long time, can make you spend a lot of money. This is because with time, the damage intensifies, and you will have to shell out more money on repairs. For this reason, if possible, try to cover the urgent home repair expenses with loans as they might not cost huge as the delayed work.
