Making home improvements is an inevitable part of owning a property. Not only do they keep your home in a good state of repair, they can add value to it as well. But securing credit isn’t as easy as it used to be. Banks are refusing loan applications far more readily than before the recent financial crisis, and an inability to raise the necessary funds could leave your property undervalued and in need of attention. It may be time to consider an affordable alternative – a peer-to-peer loan.
Perhaps you want to add a conservatory. Maybe you need extra space for a growing family. It doesn’t matter what home improvements you want to make, as long as you have a good credit history and you can demonstrate that you can afford the monthly repayments. A peer-to-peer loan could be the answer to your home improvement prayers.
Applying For Your Home Improvement Peer-to-Peer Loan
Most lending platforms provide an online application facility. Simply fill in your personal details, as well as information surrounding your income, and underwriters will assess your loan application on its merits. If you’ve been turned down for your home improvement loan elsewhere, there is still a chance that a peer-to-peer provider will accept your application – as long as you can prove your ability to keep up with the repayments.
A simple online calculator will give you an indication of your monthly repayments and the rate of interest you will have to pay. You can complete your initial application in as little as five minutes, and provided you have met the identity, credit and income requirements, the money for your home improvements could be in your account within three days – far more quickly than most high street banks can release funds.
Why Are Peer-to-Peer Loans so Competitive?
When you take out a peer-to-peer loan, you are borrowing directly from people just like you. These individuals want better rates of return on their savings and investments than they are currently being offered by typical savings accounts. The peer-to-peer model cuts out the large overheads of a major bank or financial institution, so interest rates offered to borrowers are typically lower and returns paid to lenders are significantly higher.
Peer-to-peer platforms are also a little more flexible in their approach to applications. You will usually be able to get a personalised quote before proceeding – giving you a clear picture of what your financial commitments will be.
Whether you plan to sell your home or live in it for the rest of your life, paying for home improvements with peer-to-peer finance could save you money if you intend to repay it early. Platforms offering this type of loan arrangement don’t usually impose early repayment fees, which could give you even more money to spend on improving your home. You can make over-payments whenever you like – which may be ideal if your intention is to sell your property and settle your loan with the proceeds.
Owning your own home gives you security in life. It may not only be a roof over your head, it could be a significant investment for your retirement or something to leave your children when you’re gone. By adding to its value through home improvements paid for with a peer-to-peer loan, you can look forward to a more secure financial future.