How car finance could fund your next home improvement project

While there are definite signs of cautious optimism for UK house prices, interest rates remain high and it’s still a buyer’s rather than a seller’s market. And if, in an election year, you’re considering postponing selling up because of fears of pre-poll jitters, you’re not alone. 

So, the old mantra of ‘improve, don’t move’ really could apply at the moment – with the obvious benefit of adding value to your property if and when you do finally sell. 

But home improvements to create your dream home can be expensive as well as exciting. Unless you’re lucky enough to have savings, an inheritance, lottery win or similar windfall, you’ll almost certainly need to turn to an alternative source of finance. 

You may already have contemplated equity release, adding to your mortgage or using a credit card or overdraft. But one option you may not have considered is car finance – indeed, you may not even realise you could use a car loan to pay for a home improvement project. 

But, in fact, there is no reason why you can’t spend your loan as you choose once it’s approved. 

What is a car loan?

A car loan is typically easy to arrange, and the funds can be with you quickly. Equally, what you’re getting is a long-term loan with repayments tailored to your budget. Typically, the sum will be between £1,000 and £50,000 for between one and seven years. What’s more, a less-than-brilliant credit score doesn’t necessarily mean you’ll be turned down for this finance. 

What could you spend your car loan on? 

If you’re considering using a car loan to fund a home improvement project, you have myriad options when it comes to choosing what you will actually spend the money on. Here are just a couple of ideas. 

Lofty ambitions 

A dormer loft conversion, for example, is a popular way of enjoying extra living space while enhancing your property’s value. A dormer essentially has a box-like construction and will project from your existing roofline; plus you’ll maximise headroom and daylight in the space thanks to the vertical walls and windows. 

Given that they’re not quite as build-intensive as some of the alternatives, you can typically complete dormer loft conversions pretty cost-effectively and quickly. Plus they can usually be installed over stairs you already have in place. 

Harnessing the sun’s power

Another idea, and one you may not necessarily have considered, is solar canopies. These serve the dual purpose of providing a robust shelter for a car from the elements, whether that’s snow or hail, sun or rain, while also having solar panels fitted to the roof. (Or you can have a solar glass roof with solar photovoltaic (PV) panels laminated in to it.) So you can charge up your car or power a property from these canopies while also having a safe, attractive space in which to park. 

So, with a car loan, you’re certainly not obliged to spend it on your next motor. Instead, it could be a smart way to fund the property project you’ve been dreaming of.