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When a home is aging and needs some care, an ideal way to ensure this is can be carried out is by arranging a home improvement loan. Tradesmen such as carpenters, electricians, plumbers, plasterers are an expensive addition to the overall home improvement budget but for many homeowners they have no alternative as their own skills are not sufficient.

Almost all homeowners are able to arrange a home improvement loan but some may decide voluntarily, or be forced, to have the loan secured on their home or other valuable possession. The last responsibility a new homeowner wants is that of it being used as equity for a loan to improve it. Finance organized to improve a home is normally arranged to run for up to fifteen years when equity is not required.

The only condition made on no equity finance is that the owners must have a joint income which is lower than the county limit where the property is but reaches the limit specified by the lender. Although a number of details of the applicant are looked into, these loans are relatively easy to arrange and there is not much documentation to complete.

Older properties may require more work but the mortgage on them is often only a small percentage of their market value; meaning a secured home improvement loan is often the best way to borrow money. The upside to this type of secured loan is it's available at more favorable rates of interest but is not arranged as a second mortgage on the property.

Still before a secured loan can be arranged, the equity available in your home will need to be agreed upon by the lender. All factors are considered before a final amount is agreed upon and that includes how much is owed on the mortgage, its current value and what other debts the owners may have.

All these factors will be considered for putting a loan package together for your consideration. Usually, finance companies will lend you a percentage of the assessed value of your house but some lenders can lend as high as 125 percent of your home's equity.

When you arrange a loan this way, the lender has a claim on your home should you fail to meet payments, so only borrow judiciously and consider your ability to pay it back. It is never a good idea to borrow more than you can afford to repay, no matter how noble the cause so if your home improvement loan will cause financial hardship, restrict it to cover just essential maintenance.

by Josh Daugherty