Loans ''for improvements are a good investment''

If you want to increase the value of your property by renovating it or adding an extra room then consider a loan which may eventually make you a profit, according to one expert.

Edward Simpson is the head of public affairs at the Finance and Lending Association and he says that investing in the value of your current home, rather than purchasing a new property, is a much cheaper option.

He said: "Anecdotally, because of the huge increase in house prices, people are tending towards investing in their own property: be that in touching it up or the building of extensions because that''s a much cheaper option than going into the housing market."

Most home improvement loans are secured and for this you will need to have the loan purpose approved because your property will be used as a guarantee.

You will probably get advantageous terms for this kind of loan because the lender knows the money will be used in improving the property so the value of the collateral will be raised.


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