Getting Funding for Your Loft Conversion

Where To Find Funding

Unless you have a large piggy bank or a lot of savings you are going to need to find funding for your loft conversion. Finding funding should not be hard work, as long as you have the adequate capital in your property.

Many people find the easiest way to get the funds for a loft conversion is to remortgage their current property, this makes sense because you are using the money to improve and add to the value of your current property, so your mortgage lender should not have any squabbles in giving you the money.

You will only be able to remortgage and increase your mortgage if the loft conversion is going to add value to your property and you can show that your house has gone up in value since you last remortgaged. If your house is going down in value than the chances are your mortgage lender will not let you remortgage the house for any more money unless it is confident your house will again rise in value.

Different Types of Loans

It may work out cheaper in the long run to take out a loan to carry out your loft conversion. Remortgaging would initially be cheaper and mean lower monthly payments, but you will end up paying more in the long run. Taking out a loan to carry out a home improvement is one of the most popular reasons for taking out a loan, so don’t be afraid to tell your bank that you are using the loan for a loft conversion.

You will probably find that your bank is a lot happier with you taking out a loan to do home improvements then they would if you were using the money to buy a new car.

You may also want to consider taking out a secured loan, the rates on these types of loans can sometimes be a lot more expensive than a normal loan, but as long as you are using the money for your loft conversion and to improve the value of your home, then the cost should pay for itself.

Getting A Loan in The Current Climate

You may find that the dreaded credit crunch will make it harder for you to find a loan to fund your loft conversion. If the current economic problems have pushed down the value of your home then it may be that a lender is not willing to let you remortgage until your house goes back up in value. If this is the case you may want to consider waiting a few years until property prices go back up again. Banks are also cutting down on who they are giving credit to, so you may find it a lot harder to get a loan, but as long as you can prove that you can pay ask the monthly payments then you should not have a problem.

Local Authority Help

You may find that your local authority will be able to assist you in fitting out your loft with loft insulation. A lot of local authorities will offer loft insulation at a knocked down price for low income families or the elderly. While they won’t pay for your loft conversion it is worth asking them about any special deals they have for loft insulation, you may be surprised at how helpful they will be. Your local council may also be able to offer you what is known as home improvement grants. If you can show that the work will improve the value of your home then you may be considered for home improvement grants.

These type of grants are normally offered to families or households on a low income. Improvement loans are also available from your local authority, they will work in a similar way, it may be that you local authority will supply you with a builder or tools to carry out the work, they may also pay for the work to be done for you, but by one of their designated builders.

Trying to get a loan for any purpose is becoming increasingly harder as lenders cut back on giving out as much credit, but as long as you can prove that you can make the payments then getting funding for your loft should be relatively easy. If not you should contact your local authority and ask about improvement loans and whether you will be considered, if you are on a low income and can show you are increasing the value of your home or converting for much needed space, the chances are they will be able to help you.