Whether you live in a new build house, a period cottage, or a city flat, there are sure to be a few things you’d love to change about your home. Home improvements are an inescapable feature of life for renters and homeowners alike, and they can come at a significant cost.

From putting in new windows and doors to making your home more energy-efficient or even relandscaping the garden, enhancing the character of your property may cost a significant amount – but it could also raise its value and make for a more comfortable living space.

If you’re dreaming of a new kitchen, re-modelled garden, or more sustainable home, the good news is that there are lots of funding options available. In this guide, we explore some of the best – so keep reading to find out how to pay for your latest round of home improvements.

5 Ways to Pay for Home Improvements

1.      Save, Save, Save

Perhaps the simplest answer to home renovation costs is to use the money you already have. By dipping into your savings, you can avoid the fees and interest that come attached to other forms of finance – but this route requires you to have enough money saved in the first place.

Even if you’ve got the money but it’s tied up in investments, looking elsewhere could be a better choice since you won’t miss out on any interest you might otherwise earn by leaving your cash where it is.

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2.      Pay with a Credit Card

Credit cards are an incredibly convenient way to borrow money for home refurbishments. For one thing, they don’t require you to apply again each time you need more money – providing you with the flexibility to pay for a project throughout its lifecycle.

The challenge is in getting approved in the first place. Many credit card providers apply strict criteria to their applications, and a poor credit score or income concerns could prevent you from getting the money you need. However, there are some specialist providers like Thimbl who might be able to approve people with less than perfect credit history.

As with any form of borrowing, it’s essential to shop around and find a credit card that suits your specific needs and circumstances.

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3.      Take Out a Short-Term Loan

Most people seem to associate getting a loan with the long and arduous process of applying to a bank, but it doesn’t have to be that way. There are plenty of modern direct lenders, like Omacl Loans, who are willing to take applications online and, in some cases, money can be paid into your account just moments after approval.

While loans aren’t suitable for everyone, they’re now easier to get than ever before – even if you have bad credit! By submitting an application through a reliable credit broker, such as LoanTube, which compares loans and offers from direct lenders in the UK, that is most likely to approve your request. This means that you can avoid all the stress of applying to multiple companies and could get borrowed money for your home improvement project in no time at all.

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4.      Borrow from Friends and Family

If you need to borrow flexibly, asking friends and family could help you to avoid the interest charges and fees that come attached to credit cards and other forms of finance. By borrowing money from those close to you, you could also avoid the need for a credit check – but that doesn’t mean that this approach comes without its problems.

Many people underestimate just how awkward topic money can be, and you’ll also need to find somebody willing to lend you the cash to start with. If things go wrong and you struggle to repay what you owe, you risk putting your relationship under strain – and that’s really not a price worth paying.

If you do choose to ask family or friends for money, make sure that you’ve agreed on a clear repayment plan and be open and honest about your reasons for needing money. With a transparent approach from the very beginning, you’ll stand a better chance of maintaining your relationship and getting your property up together.

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5.      Refinance Your Home

If you’re interested in improving your home, why not also leverage the property itself to pay for the project? By approaching your mortgage lender and asking for a further advance, or remortgaging entirely, you could release the funds you need without the need to seek out new forms of credit.

While this approach is certainly worth exploring, it doesn’t come without its pitfalls. For one thing, the extra funds may not be offered at a comparable rate to your existing mortgage and could tie you in for a specified period of time. You’ll also need to crunch the numbers since mortgage lending can affect your finances for years to come.

Overall, remortgaging could make all the difference to your home repair efforts – but it’s not the most sensible choice for everyone and definitely requires further investigation.

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DIY Financing for Home Improvements

Home improvements don’t come cheap, but the options outlined in this article could help you to access the funds you need. The most important thing to remember is that there’s no one approach to funding a project that suits everyone. While a credit card may be appropriate for one person, their neighbour may not be able to get approved, and so other options may be more apt for their circumstances.

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When all is said and done, what matters is that you’re financially stable and living in a space you’re proud to call your own.