Tag Archives: home improvement

How to finance home improvements

finance-diy

Many of us would cite ÔÇÿsaving moneyÔÇÖ as a reason for tackling DIY jobs ourselves, yet home improvement projects can be anything but cheap!

Research from the Nationwide Building Society* shows that Brits plan to spend an average of ┬ú3,342 on DIY projects over the coming year ÔÇô totalling ┬ú79bn as a nation! Whilst two thirds of those surveyed are planning to take on less expensive tasks such as painting or wallpapering, 16% are going to update or completely renew their kitchen and 18% are going to overhaul their bathroom. And with nearly one in 10 planning to spend more than ┬ú5,000, the question is: how to finance these grand designs?

Here we outline some of the funding options available to homeowners planning a DIY project:

Loans

Loans are a good way of spreading the cost of your home improvement over a number of years in manageable monthly instalments. Shop around to compare interest rates; a number of good deals around at the moment mean many customers should be able to get an interest rate of about 5%. DonÔÇÖt forget to consider supermarket, as well as bank, loans, and remember that your home could be at risk if you donÔÇÖt keep up the payments.

Credit cards

credit-checkFor people who are good at managing their money, a 0% credit card can be an excellent way of financing a building or DIY project. As the name suggests, these cards offer interest-free credit for a specified length of time and, with a recent credit card ÔÇÿwarÔÇÖ breaking out between lenders, itÔÇÖs a great time to take advantage of 24 and even 32-month 0% deals. But remember that the trick here is to switch to another 0% free card when your deal comes to an end or you could find yourself on an unfavourable rate without realising the costs.

Grants

In some circumstances, such as if youÔÇÖre disabled and need to improve or adapt your home, you can get a grant to help with the cost. Your local authority should offer grants or loans to people who meet certain criteria, as well as sometimes providing tools and equipment or recommending builders who can carry out the work. Citizens Advice has detailed information on the type of help you could access.

If your improvements include energy efficiency measures, grants towards things like cavity wall and loft insulation or the cost of a new boiler are available. Again, Citizens Advice is a good place to start if you want to find out more about the Energy Companies Obligation or the Nest scheme for homeowners and tenants in Wales, and you can also call the Energy Saving Advice Service on 0300 123 1234 for up-to-date information. 

Remortgaging

Homeowners with a good credit rating and a reliable income can usually release equity from their home to pay for refurbishments or building extensions. But spreading the debt over a longer period ÔÇô such as the length of your mortgage ÔÇô might see you paying more interest than you realise. In addition, remortgaging is becoming more difficult as lenders tighten the rules to focus on affordability, so you might find your mortgage lender wonÔÇÖt be rushing to increase your loan as they might have a few years ago.

However you choose to finance your home improvement plans, donÔÇÖt forget to budget carefully and put aside a small contingency pot to cover unexpected expenses. And if youÔÇÖre calling in professionals to help with any part of the job, get a number of quotes first and ask for references or recommendations.

* YouGov survey of 2,128 adults carried out in February 2014 for Nationwide

decorating-mistakes

Decorating dos and don’ts

decorating-mistakesAutumnÔÇÖs here again, signalling a switch from outdoor maintenance and gardening to indoor decorating. But before you tackle DIY jobs big or small, read our guide to the decorating mistakes you really should avoid if you want your home to stand out for all the right reasons!

DONÔÇÖT start to decorate without proper planning. Think you can do without those fiddly tester pots? Paint can look a lot different on the walls than on a paint chart, so it really is worth investing in a few tester pots before splashing out on litres and litres of the wrong colour. Leave the sample on the wall for at least 24 hours before making a decision, too, because a colour can vary depending on the light.

DO make sure you prep the room first. Sanding down skirting boards before varnishing and masking off switches and sockets can be pretty boringÔǪ but taking the time to prepare properly will make a big difference to the overall finish.┬á

DONT buy all your furnishings from one retailer unless you actually want your lounge to exactly replicate the home department of your favourite store, that is! Mix quality pieces with inexpensive accessories and look for quirky one-offs in antique shops or online that no one else will have.

DONÔÇÖT blindly follow trends if they donÔÇÖt suit your style. A home without your own personal stamp will just look bland, so make sure your d├®cor reflects your personality or that you at least include a few individual items in each room. And remember that fashions donÔÇÖt last anyway, so being utterly on-trend is a bad idea unless you can afford to redecorate every year!

DO measure up before you start; dont just guess. This goes for the number of rolls of wallpaper needed and the length and width of curtains and blinds. Always measure the allocated space for an item of furniture and take the measurements with you when shopping not forgetting to consider extra factors such as whether large pieces will fit through the door or up the stairs!

DO invest in the right tools. A spirit level is a must if youÔÇÖre putting up shelves or towel rails, whilst trying to make do with a cross-head screwdriver when you really need a flat-head is asking for trouble. When it comes to paintbrushes, thereÔÇÖs no need to buy the most expensive on the market but very low-end budget brushes are best avoided, as they tend to leave bristles in those nice, freshly painted walls.

wall-lightsDONÔÇÖT ÔÇÿswitch offÔÇÖ interest after the painting and papering is done! Even the most expertly decorated room will be let down by poor lighting, so make sure this is included in your plans and your budget. The effort put into decorating a large room stylishly wonÔÇÖt be reflected with one measly central bulb, so think about installing a line of downlights or buying┬átable lamps to place in gloomy corners. And a small room can be made to look much bigger by bouncing light off the walls and ceiling with uplighters.

DO call in the professionals if a job is too big or tricky. DIY is all well and good for small jobs or if you know what youÔÇÖre doing, but tackling a job youÔÇÖre unsure of might prove a false economy ÔÇô especially if you have to call in the experts anyway to put right your disaster! Be particularly careful around electrics and plumbing and, if you are confident you can tackle a job yourself, make sure young children and pets are safely out of the way first.

Why DIY could cost you dear!

home-insuranceWhat kind of DIY enthusiast are you? Do you do it yourself because you love fixing, painting and building things? Or is your enthusiasm more about the pounds youÔÇÖre saving by foregoing a professional job?

If itÔÇÖs the latter, the bad news is that your dates with DIY could end up costing you a lot more than you expect. This is because if the job goes wrong, the repairs might not be covered by your home insurance, leaving you facing a potentially hefty bill.

Home insurance covers the policyholder for events such as loss, damage or theft. But if the loss or damage is caused by the policyholder him or herself, the insurance company might not be so eager to pay out! If you have accidental damage cover or household emergencies cover included with your policy, you might assume that you can make a claim if your have-a-go handiwork proves less than happy. But DIY disasters are a real grey area, with many insurance companies rejecting claims for damage that the homeowner has caused.

The key to any claim is reading through your policy thoroughly and understanding which eventualities you are and arenÔÇÖt covered for. ItÔÇÖs likely that your insurance policy will extend to repairing a pipe if you accidentally hammer a nail through it, but not to bigger scenarios such as fixtures or furnishings ruined due to poor workmanship or damage caused to mechanical fittings or the structure of the property.

If you do DIY regularly, it could be worth having a chat with your insurer to find out what your policy entails and whether you can add extra cover to a basic policy to protect against small glitches. As a rule of thumb, however, it is always wise to leave mechanical and electrical jobs to the professionals. Not only is it highly unlikely youÔÇÖd be covered for damage whilst carrying out such jobs, they could prove risky! Always keep boilers and electricals maintained and serviced where appropriate; if you or an engineer has an accident working on poorly maintained equipment, it could be another reason for a claim to be withheld.

And whether you do it yourself or call in the experts, donÔÇÖt forget to notify your home insurers of major changes. Adding a kitchen extension or converting a garage to a spare bedroom might not seem relevant at the time but could make a big difference to your policy if you later have to make a claim.