Tips on funding your home renovations when you’re over 50


Posted on: 26 September 2018 by Patrick Mcginty

There is no better feeling than renovating your home, revamping its style and dusting off all the old cobwebs. Although the process can be fun and exciting for many, the cost of funding it is an entirely different matter.

There is no better feeling than renovating your home, revamping its style and dusting off all the old cobwebs. Although the process can be fun and exciting for many, the cost of funding it is an entirely different matter.

Knowing the smartest way to finance your home renovations whether it's a new bathroom, bedroom or fitted kitchens, it can seem challenging, that is why we have created a comprehensive guide that helps you to avoid the pitfalls that could result in you breaking the bank.

Whilst there are no regulations that state what you can or cannot spend your pension fund on, it may not be the brightest idea to splash the cash on home improvements. Pensions were created so that after retirement, people could enjoy a steady and regular income in order to help them live comfortably.

Spending your pension on home renovations may seem like a smart idea, but the burning hole it could leave in your bank account will leave you facing the financial consequences for years to come. With a recent change in pension regulations and the increased freedom granted to those over 55, it is no surprise that a rising number of people are choosing to subsidise the cost of home renovations with the help of their pensions.

Just like pensions, it seems unwise to fund the cost of home improvements with your savings or investments. Cashing in investments and savings is risky in its own right, marrying this with the risk of financial insolvency makes the whole process uncertain. The funds derived from investments and savings are ideal for supporting challenging financial situations such as medical emergencies or unexpected car expenses – spending this money on home renovations as opposed to keeping investments in place and savings in an ISA could potentially leave you in financial hardship.

Whilst subsidising the cost of home improvements with pensions, savings or investments is neither the safest nor wisest decision, most people can’t afford to pay for renovations outright. So what are your other options?

For many, taking out a loan seems scary and frankly unnecessary, however with banks now lending to those aged 70 and over alongside the cost-effective low rate loans available, taking out a loan is becoming an increasingly attractive option to help with the cost of home improvements. There are also 0% finance options that can be acquired from suppliers of home appliances to help spread the costs. Depending on the amount you are looking to borrow, there are number of different options available. If you’re looking for a smaller loan, a 0% interest credit card could be the best option, with some lenders offering a plan of up to 43 months.

You may also be eligible to take out a new mortgage (depending on your expected future income) in order to cover the costs of home renovations. With mortgages now being paid off up to the age of 85, the cheaper alternative allows repayments to be spread over a number of years. When taking out a loan or new mortgage, you must be confident that you can pay back the money you owe – the quicker the money is paid back the better.

With an extensive and growing range of viable and attractive lending options available to those over 50, there is no need to fund your new home improvements with your pension or savings. Saving the money you have invested over the years ensures that you’re covered for any rainy days in the future! 

For more information on fitted bedrooms or kitchens, please contact Tara Neil.

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Jordan Lee posted 18 June 2020

When the repair is completed, it remains only to purchase high-quality appliances and electronics in your home. We order all household appliances in the store rde and are satisfied with our choice. A long guarantee for each product, when used there are no interruptions and problems. The price category is different, but most of the goods are acceptable for each consumer.


keera libirea posted 15 September 2020

That torquiae accent on the wall and cabinet are on point elegance! Same with a 
Acrylic Rendering Melbourne craftmnship!

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