What are the Options for Financing a Garden Room?
Garden rooms are a great enhancement to any property. Not only do they look fantastic and add value to a home, they are such versatile spaces that can be used for many different purposes. Whether you want an additional bedroom, a home office, a playroom for the kids or a dedicated space for another purpose, a garden room can meet your needs. In this post, we will explore how to finance a garden room so you can get the additional space you need.
Use your savings
Do you have savings available? If so, you can use these to purchase your garden room outright. This is an excellent option because it means that you won’t have to pay any interest and therefore get your garden room for the best possible price.
If your savings don’t entirely cover the full cost of the garden room you want, consider using them for a part payment in combination with another form of financing. This will help to reduce the amount of interest you are paying back on the remaining cost.
Take out a personal loan
If you don’t have enough in savings to buy your garden room outright, you can consider taking out a personal loan to pay for all or part of the structure. These are available from banks and other credit providers. The monthly repayments and interest levels will vary depending on the provider and your personal circumstances and credit status, so be sure to shop around to get the best deal.
You will have to pass a credit check before being approved for a personal loan. Personal loans are available as either secured or unsecured. If you take out a secured loan, this will be secured against assets such as your home. Secured loans generally have a lower APR because they are lower risk for the provider. However, if you don’t keep up with the repayments, your assets will be at risk.
An unsecured loan is not secured against your assets but may come with a higher APR because it is a higher risk for the provider. Comparison sites can help you find the best unsecured loan. Those with better credit scores tend to get better rates because lenders consider them to be a lower risk.
Equity release is an alternative option to finance or a personal loan. Equity release involves taking out a mortgage against your property and converting this into income. People choose this option to fund many different things such as home renovations, holidays, their retirement and their children’s education. It is also a suitable option to help you pay for a garden room if you are eligible for this.
Equity release is normally available to people over the age of 55. It can help you release money to spend on your garden room and anything else you choose. This money is repaid to the provider either when you sell your property or pass away. This is the major benefit of equity release because it means you can enjoy your retirement without worrying about repayments.
Top tips to help you get your credit application accepted
If you are choosing a finance option of any kind, you will need to pass certain checks before being approved. This involves your data being checked on your credit report to see if you are a high-risk borrower or not. These tips can help ensure you are accepted:
- Check your credit report before applying. You can do this for free online. The three main companies are Equifax, Experian and Trans Union. Your score may differ on each of these, so be sure to check them all.
- If there are errors on your report, you will be able to resolve these before applying for credit to improve your chances of being accepted.
- Make sure all your payments with existing credit providers are up to date before applying for new credit.
- When you apply for credit, a hard credit check is made. This will show on your credit report and can affect your chances of being accepted by other companies. Therefore, when you know you will be applying for credit, try not to apply for other forms of credit for some time beforehand.
- If you have previously had issues with bankruptcy or debt, consider looking for a specialist provider that accommodates this. The APR with such providers is likely to be much higher, however.
As you can see, there are many different options for financing your garden room. A garden room is a significant investment, so be sure to do your own research and weigh up all the options first to determine which is best for you. This will always depend on your personal circumstances.