You would like to have the roof extended in your own home. This way you get an additional living space: you may want to rent this apartment out later and thereby secure an independent income. Or has your family grown since you bought the house, or have the children grown older and want more independence from their parents. There are many reasons for the roof extension, and in any case this construction measure costs a lot. It can be in the tens of thousands, so it is likely that a loan will be necessary for the loft conversion.
Several options for a loan for loft conversions
Construction work on your own home can be financed by different loan providers. One of the ways is to take out a mortgage loan. Many branch banks, but also direct banks, offer such loans. In the case of a loan of this type, the home and the property are considered to be security for the bank, so there is a high probability that the loan will be approved.
Of course, before you take out a loan for the loft conversion, you have to use the online credit calculator to determine how high the monthly repayment will be and whether your income is sufficient to pay the loan. The banks are also legally obliged to check their creditworthiness and to obtain private credit checker information. When taking out a mortgage loan, it is important to remember that in the worst case scenario, your house could be turned over to the bank in the event of your insolvency.
A cheap option for a loan for the loft conversion is to use your building society contract. If you have concluded a home savings contract, you have a certain amount in your home savings account that you have available after a period specified in the contract. In addition to this amount, there is also a loan, so after the replacement of your building society contract you usually have a substantial amount that could be sufficient for the roof extension. Loans related to home loan contracts have low interest rates. The difficulty is that these loans are not immediately available, but only after the deadline.
Some examples of cheap loans
With the multiple test winner Dr. Small bank, you can get a building loan with 1.86% APR, the total amount of the loan can be up to USD 500,000. With the fixed interest rate for 5 years, the interest rate remains 1.86%, if you want fixed interest rates for 30 years, the effective annual interest rate will be 3.40%. At Netbank, which is also one of the cheapest providers on the market, you can take out a loan for the loft conversion for a period of up to 30 years, with fixed interest rates for the entire term of the loan, the annual percentage rate is 3.42% the bond for 5 years – 1.63%. You can also take out cheap loans from BHW: an example would be a loan for construction work on the house: USD 12,000 for 15 years. In this case, the interest rate is 3.95%.