Our homes come with a great deal of additional expenses alongside the mortgage payments, taxes, and insurance. Maintenance is one of them. While there are some minor repairs that can be put off for quite some time, other essential repairs simply can’t wait. These include leaky pipes, mould remediation, and a broken boiler.
However, these unpredictable repair expenses oftentimes catch us off guard, and we might not be able to afford them. Thankfully, there are a few potential solutions that are budget-friendly and won’t leave us with a leaking roof or no hot water for weeks. Here is how you can resolve your home repair issues even when you can’t afford it.
DIY home repairs
Fixing the problem on your own is probably the first thought that pops in your head when it comes to cost-effective ways to do home repairs. While there are definitely some repair issues that don’t call for a professional, such as a clogged drain and defrosting a frozen water pipe, other major issues aren’t a DIY job.
So before you get on with your home repair endeavours, evaluate the issue and decide on the best solution. If you can fix it yourself, research the problem thoroughly. Most minor home repairs are explained in detail in many online videos, so you can just follow along. Next, you need to consider what parts and supplies you need and source them from a budget-friendly store, such as Homebase or B&Q.
If the issue is still present after your DIY magic, it’s best to call a professional or consider the options below.
Local home improvement financing
If you need financing for the materials for your DIY home repairs or are happy to pay for the labour out of your own pocket, a local home improvement financing is ideal for you.
Many local home improvement stores, such as Homebase and Screwfix, offer financing options to fund your home repair endeavours. Usually, they have deals that allow you to open a credit line with the store to purchase items with 0% interest for a certain amount of time.
These stores often have special deals with which you can receive discounts or free shipping if you spend a certain amount of money.
Home emergency and boiler cover
You can also add a home emergency and boiler cover to your house insurance policy. This usually covers issues with your main utilities, such as water, gas, and electricity. Examples include leaky pipes, a broken boiler, and electrical surges.
The cover is only applicable if the emergency affects your health, can damage your home, or compromises your home’s security. This ensures that whenever major mishaps occur, you’re always covered.
Home repair loan
Banks offer a range of loans, from business entrepreneurship ones to car purchase loans. A home repair loan is also on the cards.
This type of loan operates the same way a mortgage does. Your bank will perform a credit and quality check, and you will be given an amount that corresponds with your income and credit report. A home repair loan is issued for improving the crucial infrastructure of your home, but if such isn’t available, you can also apply for a personal loan.
Home equity line of credit
A home equity line of credit (HELOC) applies to you if you have a mortgage on your house. It’s based on the equity in your property and typically amounts to 90% of the home’s value.
For example, if your home is worth £100,000 and you’ve paid off £50,000 of your mortgage, you will be eligible for a line of credit of up to £40,000.
You can take a HELOC from a bank or a mortgage company. They will look at your credit score to determine if you’re eligible for a line of credit and what the interest rate will be.
HELOCs have been on the rise since the pandemic and the boom of home improvements. According to a survey performed by Shawbrook Bank, second charge brokers have seen an 81% increase in demand for finance options for home repairs and refurbishments from March 2021 through September 2021.
Grant or government loan
Grants and government loans are available in some areas for performing home repairs and are funded by the local authority. They cover maintenance work done to your property, such as electrical, plumbing, plastering, and even energy efficiency improvements. They need to be repaid over a certain period of time at a predetermined interest rate.
However, government loans and grants tend to be hard to get and have very stringent application requirements. Nevertheless, it’s best to check with your local authority to find out if you’re eligible for one.
With such a wide variety of financing options available, the lack of funds shouldn’t stop you from making essential home repairs. At the end of the day, your health and home security are top priorities.