Spring is coming, and so are home improvements - the knocking of the first hammer into a thumb is due shortly!

In the spring a householder's fancy lightly turns to thoughts of home improvements. Anyone moving into a new home will already be up to speed with the latest colour charts, lighting arrangements and bathroom fittings, because most people want to make their mark on their new abode and make it their own. But, what if you have been in your home for a while; it is cosy and just how you like it?

Should you be considering home improvements? And if you decide to go ahead, how will you finance them? The obvious answer is to consider a personal loan - and there are plenty of good deals on the market - but since the improvements are intricately tied up with the value of your home, you might find a better deal by remortgaging.

Remortgaging is a cheap way to borrow money. Usually taking equity from your home to purchase something with a short life, such as a holiday or new car, is to be discouraged, as the reason for increasing your borrowing will have faded into memory or hit the scrap heap long before you have paid off your debt, if you stretch repayments out over the length of your mortgage. However, putting a bit more on the mortgage to raise the value of the property itself makes a lot of sense, particularly for more expensive enterprises, such as building an extension or installing a new bathroom.

Despite the recent interest rate rises there are still some good deals to be found. And remember that you can often take out additional borrowing on a different basis from your existing loan, perhaps borrowing a new tranche of cash with a discounted loan to add to the fixed rate offer you have already, or vice versa. You don't always need a totally new deal. Talk to your existing lender about what they can offer you, or, if you do decide to remortgage from scratch, use our calculators to find the best rate.

Home improvements fall into three categories: essential, investment-oriented and cosmetic.

Essential home improvements

Essential improvements are those to do with the fabric of the house. These "improvements" should really rarely be needed, because the first rule of home ownership is to keep the house in good repair. While you might be able to live with tatty old curtains and a sofa that sinks in the middle, you need to be a bit more fussy about the structure of the house. However, we all let things slip when it comes to maintenance, and sometimes it is impossible to avoid a really big expense, such as replacing the roof.

For routine jobs, the adage "a stitch in time saves nine" is one to remember if your home is to retain its value and not actually cost you more in the long run.

This means that you need to maintain the brickwork in good order, keep gutters, drains and downpipes clear, make sure there are no loose tiles or slates on the roof, and keep window frames smartly painted to prevent rot. Look out, too, for things like tree roots that may cause subsidence or heave if left unattended too close to the house, or overhanging branches that can cause damage where you might not spot it.

12 March 2007 © Moneyextra.com

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