Renovating is not often easy, especially when it comes to financing. In order to materialize its projects, the financial institutions have designed the work or construction loan, which will enable major works to be carried out with appropriate conditions, particularly with regard to duration and amount.

Consumer loan is changing

To redo his kitchen , to set up a new heating system using renewable energies , to make an arrangement of attics, to replace windows to obtain an optimal insulation, all these ideas and these desires of development often raise the question of the financing. Since the entry into force of the latest provisions cited by the Lagarde Act, which provides for a reform of consumer loan, work loans are better supervised.

It concerns all loans granted to natural persons whose duration is greater than one month and whose amount varies between 200 and 7500 euros, the acquisition of real estate is not included. The ceiling of the loan conso thus passes from 21 500 euros to 75 000 euros, in addition to the application of the rules of protection for the borrowers until this new cost, in particular the right of retractation or the protection for the loans.

 

Opt for an assigned work loan or a personal loan?

Attached directly to the financing of the works, the loan work assigned is devoid of flexibility compared to the personal loan but it has more security because the loan will not have to be if the work has not been done.

The loan rates work are also lower than those of personal loans because for financial organizations they generate less risk. On the other hand, to obtain a loan works it is necessary to provide a justification of the usefulness of the funds by providing estimates for your work or invoices.

 

Choose a fixed rate or floating rate loan?

If you choose a fixed rate work loan , the total cost of your loan will not budge. It does not matter if there is a decline or an increase in the rates, you will not benefit.

For floating rate loans , the amount of repayments varies from year to year depending on the market. At the signature, you can benefit from an interesting rate but which will be likely to increase then. You can also opt for a cap rate loan to set a cap and remain free in early repayment of the loan.

Before beginning the work, it is important to remember that to inquire in advance about the various financing possibilities according to the work envisaged is necessary, it is the same for a choice of the company that will carry out your work.