Muddy Stilettos


<figure class="wp-block-image size-full"><img decoding="async" loading="lazy" width="1500" height="1001" src="https://dev.muddystilettos.co.uk/wp-content/uploads/2024/10/pexels-jakubzerdzicki-29134180.jpg" alt="modern white house stairway architect design" class="wp-image-99588" srcset="https://dev.muddystilettos.co.uk/wp-content/uploads/2024/10/pexels-jakubzerdzicki-29134180.jpg 1500w, https://dev.muddystilettos.co.uk/wp-content/uploads/2024/10/pexels-jakubzerdzicki-29134180-600x400.jpg 600w, https://dev.muddystilettos.co.uk/wp-content/uploads/2024/10/pexels-jakubzerdzicki-29134180-1000x667.jpg 1000w" sizes="(max-width: 1500px) 100vw, 1500px" /></figure>



<p>Hey Barbie, we’re getting you that dream house! Since Covid and the advent of remote working as the norm, our homes have become not just our havens, but a national obsession. It’s the place we huddle away, unwind, and escape from the world. And with shows like <em>Grand Designs</em> setting our creative juices into overdrive (not to mention <em>Barbie&#8217;s</em> mid-century modern pink pièce de resistance in 2024), our imaginations are rampant with never-ending possibilities of how to revamp our spaces.</p>



<figure class="wp-block-image size-full"><img decoding="async" loading="lazy" width="1600" height="1200" src="https://dev.muddystilettos.co.uk/wp-content/uploads/2024/10/AD0623_BARBIE_5-copy.jpg" alt="pink Barbie house with pool and slide Photo: Jaap Buitendijk/ Courtesy of Warner Bros. Pictures " class="wp-image-99552" srcset="https://dev.muddystilettos.co.uk/wp-content/uploads/2024/10/AD0623_BARBIE_5-copy.jpg 1600w, https://dev.muddystilettos.co.uk/wp-content/uploads/2024/10/AD0623_BARBIE_5-copy-600x450.jpg 600w, https://dev.muddystilettos.co.uk/wp-content/uploads/2024/10/AD0623_BARBIE_5-copy-1000x750.jpg 1000w, https://dev.muddystilettos.co.uk/wp-content/uploads/2024/10/AD0623_BARBIE_5-copy-1536x1152.jpg 1536w" sizes="(max-width: 1600px) 100vw, 1600px" /><figcaption class="wp-element-caption">Photo: Jaap Buitendijk/ Courtesy of Warner Bros. Pictures&nbsp;</figcaption></figure>



<p>However, as much as we’re fantasising about that home that wouldn’t look out of place in the Hollywood Hills, the reality is, the cost on the plastic really isn’t so fantastic. Building is more expensive than ever with the price of building materials going up an eye-watering 38% since July 2020. But don’t give up hope. If you don&#8217;t yet have the cash flow of a gazillionaire, here are five ways to finance the dream that are grounded firmly in reality.</p>



<h2 class="wp-block-heading" id="h-bank-loan-nbsp">Bank loan&nbsp;</h2>



<figure class="wp-block-image size-full"><img decoding="async" loading="lazy" width="1500" height="1000" src="https://dev.muddystilettos.co.uk/wp-content/uploads/2024/05/modern-retro-stylish-kitchen-and-lounge-with-brick-wall-and-velt-mid-century-chair-706508986.jpg" alt="white kitchen with living room wall brick and a mid century chair " class="wp-image-92784" srcset="https://dev.muddystilettos.co.uk/wp-content/uploads/2024/05/modern-retro-stylish-kitchen-and-lounge-with-brick-wall-and-velt-mid-century-chair-706508986.jpg 1500w, https://dev.muddystilettos.co.uk/wp-content/uploads/2024/05/modern-retro-stylish-kitchen-and-lounge-with-brick-wall-and-velt-mid-century-chair-706508986-600x400.jpg 600w, https://dev.muddystilettos.co.uk/wp-content/uploads/2024/05/modern-retro-stylish-kitchen-and-lounge-with-brick-wall-and-velt-mid-century-chair-706508986-1000x667.jpg 1000w" sizes="(max-width: 1500px) 100vw, 1500px" /></figure>



<p>The obvious solution, of course. Bank loans can be a lifesaver when it comes to funding renovation projects. For this, you’ll want to check out the home improvement loan. It does what it says on the tin really, allowing you to borrow money for the purpose of paying for home renovations like a new kitchen, an extra bathroom, or a garden overhaul. There are two types – secured and unsecured – which vary depending on the scale and cost of your project. It’s a flexible and common way to secure some cash. </p>



<p>But there are factors to consider. Pesky interest rates come as standard, you’ll only get access to the best rates if you have a good credit history, and if circumstances change, you’ll need to ensure payments will be affordable long term. Also, be aware that a secured loan is backed by an asset, such as a home or car, so you need to be absolutely sure you won&#8217;t default on your payments. </p>



<h2 class="wp-block-heading" id="h-remortgage">Remortgage</h2>



<p>If you’re not keen on the idea of high interest rates keeping you in a chokehold, remortgaging can be a cheaper alternative, providing better financial security, and as a result, peace of mind. By taking out a new deal you’ll be able to free up some extra funds and depending on the loan to value ratio&nbsp;you’ll be borrowing at, you’re likely to get a lower interest&nbsp;rate.</p>



<p>Remember though, this is not a short-term solution and will lock you into a repayment plan for the long haul (potentially decades). Some lenders have restrictions on how to use the money released by remortgaging too, so make sure you fully understand the terms of your agreement. Oh, and beware of pricey early repayment charges if you’re remortgaging before your current deal expires.</p>



<h2 class="wp-block-heading" id="h-heloc-loan">HELOC loan</h2>



<figure class="wp-block-image size-full is-resized"><img decoding="async" loading="lazy" width="1000" height="667" src="https://dev.muddystilettos.co.uk/wp-content/uploads/2021/02/woman-holding-black-purse-with-red-nails-1000-1.jpg" alt="woman with red nails holding a black purse " class="wp-image-37055" style="aspect-ratio:1.4992503748125936;width:1500px" srcset="https://dev.muddystilettos.co.uk/wp-content/uploads/2021/02/woman-holding-black-purse-with-red-nails-1000-1.jpg 1000w, https://dev.muddystilettos.co.uk/wp-content/uploads/2021/02/woman-holding-black-purse-with-red-nails-1000-1-300x200.jpg 300w, https://dev.muddystilettos.co.uk/wp-content/uploads/2021/02/woman-holding-black-purse-with-red-nails-1000-1-720x480.jpg 720w, https://dev.muddystilettos.co.uk/wp-content/uploads/2021/02/woman-holding-black-purse-with-red-nails-1000-1-787x525.jpg 787w" sizes="(max-width: 1000px) 100vw, 1000px" /></figure>



<p>All hail the <a href="https://muddystilettos.co.uk/life/finance/selina-finance-heloc-home-equity-line-of-credit-house-renovations-school-fees/">HELOC</a>!  The Home Equity Line of Credit (HELOC) loan is hugely popular in the US, Canada and Australia, with <a href="https://www.selinafinance.co.uk/">Selina Finance</a> currently the only FCA-regulated provider in the UK. It&#8217;s a potential gamechanger for homeowners who can use it to access the equity in their property for a flexible line of credit on house renovations. </p>



<p>Crucially, the loan doesn’t affect the rate or repayment on any existing mortgage you have in place. You only pay interest on the money you draw down, rather than the amount borrowed and for the first five years there are unlimited drawdowns, repayments and re-drawdowns up to your credit limit. Plus, you can also put unlimited funds back into your account or pay off your loan entirely with no early payment penalties. It acts like a credit card but of course, like all these magical pieces of plastic, it does need paying back so you need to be sure you have the repayments covered.</p>



<h2 class="wp-block-heading" id="h-0-credit-cards">0% credit cards</h2>



<p>For smaller projects (not the <em>Grand Designs</em> level stuff), a 0% credit card is a solid option that could prove cheaper than a loan. You won’t have to pay interest for a set period (sometimes up to two years). Plus, Section 75 is like your guardian angel, offering extra protection in the event of something going wrong with your build. Although, you will need to consider whether you can actually use a card for what you need. If you do go ahead, just remember to clear the full balance every month otherwise the interest will come knocking. You can test the likelihood of being accepted for a 0% credit card online without afffecting your credit rating with <a href="https://www.experian.co.uk/experian-account/credit-cards.html?utm_source=google&amp;utm_medium=ppc&amp;utm_campaign=purchase_cards&amp;gad_source=1&amp;gclid=Cj0KCQjwsoe5BhDiARIsAOXVoUs0zF36h7Y1NFAAa8UP9CD7mi-V3uqU_aln0tCgz8703mMpGDvbWtwaAuGiEALw_wcB&amp;gclsrc=aw.ds" target="_blank" rel="noreferrer noopener">Experian</a>.</p>



<h2 class="wp-block-heading" id="h-friends-and-family">Friends and family</h2>



<figure class="wp-block-image size-full"><img decoding="async" loading="lazy" width="1000" height="667" src="https://dev.muddystilettos.co.uk/wp-content/uploads/2021/03/baby-with-grandparent-holding-hands-unsplash-1.jpg" alt="toddler holding an old person's hand black and white image " class="wp-image-41777" srcset="https://dev.muddystilettos.co.uk/wp-content/uploads/2021/03/baby-with-grandparent-holding-hands-unsplash-1.jpg 1000w, https://dev.muddystilettos.co.uk/wp-content/uploads/2021/03/baby-with-grandparent-holding-hands-unsplash-1-300x200.jpg 300w, https://dev.muddystilettos.co.uk/wp-content/uploads/2021/03/baby-with-grandparent-holding-hands-unsplash-1-720x480.jpg 720w, https://dev.muddystilettos.co.uk/wp-content/uploads/2021/03/baby-with-grandparent-holding-hands-unsplash-1-787x525.jpg 787w" sizes="(max-width: 1000px) 100vw, 1000px" /></figure>



<p>Borrowing cash off friends or loved ones isn’t ideal and not all of us are so lucky. But a helping hand is always appreciated. For those who have the option, it&#8217;s worth considering. Mum and Dad are usually the first call, and for smaller amounts parents can give up to £3,000 a year either to one person or split between multiples without triggering the dreaded inheritance tax (IHT). The same applies for parental gifts of up to £5,000, as long as you get married. But however you borrow the money, remember to keep a detailed log of everything you owe and get a repayment plan in place from the offset to keep friends and family onside &#8211; there&#8217;s no point in having a fabulous house with no-one visiting you! </p>



<p><em>For more information on financial services, visit the </em><a href="https://www.citizensadvice.org.uk/wales/about-us/our-work/advice-partnerships/money-advice-services/"><em>Citizens Advice Bureau</em></a><em>.</em></p>



<p><em>More information on the <a href="https://www.selinafinance.co.uk/borrow/home-equity-line-of-credit" target="_blank" rel="noreferrer noopener">HELOC loan</a> visit <a href="https://www.selinafinance.co.uk/products/heloc-home-equity-line-of-credit" target="_blank" rel="noreferrer noopener">selinafinance.co.uk</a></em></p>


New year, new palace? 5 ways to finance your dream build

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