If you’d love a London loft conversion but you don’t have the cash to fund it there are a number of options available to you. But which of these options should you choose?

Most of us a have a credit card to drop it on or we could take out a personal loan and work to pay it off. Alternatively, if you’re paying a mortgage on the home you are looking to improve you might choose to remortgage and free up some cash that way.

Which is the right answer? Well, that really depends.

Every financial situation is different and it is important to get advice from the experts before making a decision. If you do have a mortgage you might choose to talk to your existing lender about your options or independent advisor.

Some believe that it is the right time to remortgage or take out a loan to do up the home, since both mortgage rates and personal loan rates are currently low; but it’s one thing for a loan company to advertise an incredible rate and it’s another to actually get it. Often, the best rate is reserved for the flawless credit score.

A lot could depend on the timeframe over which you’d like to repay it. A personal loan might cost more on a month to month basis but run for a much shorter period of time. Ultimately, you will pay more through your mortgage, albeit in smaller instalments, so you should only really select this option as a means of reducing monthly outgoings.

Certain credit card companies will also offer you 0% interest, allowing you to pay the project off sooner whilst capping what you have to pay. It is absolutely essential, however, to carefully read the terms and conditions before choosing this kind of option.

Work out how much you have to spend on the work per month. If it is possible to repay over 5 years rather than several decades, you could choose a loan.

It is worth bearing in mind that whatever you spend will add value to your home and not just enhance your enjoyment of it. For this reason, a loft conversion in London could be thought of as an investment rather than expenditure; no matter how you choose to pay.

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