Buying your own home can be an exciting time, but it can also lead to a lot of expenses that you’re not used to. After you’ve paid the deposit and all the fees, it’s not unusual for your savings to be depleted, meaning that you might struggle when it comes to getting your new home decorated, furnished, and feeling like a place that you can be proud of. Another issue that you might face is unexpected costs. No matter how thorough you are when buying a home, there’s always the risk that something could go wrong. If you’ve moved in to find that there’s a leak that needs fixing, electrics that need repairing, or your boiler has broken down, you’re the homeowner and you need to fork out to cover the costs. The good news is that there are plenty of short-term financing options available to help you out.
Short Term Loans
Short term loans are designed to be repaid on your next payday or in instalments over a couple of months or so. This type of loan is an ideal choice for covering an unexpected expense in your home or buying something that you cannot go without, like a cooker, washing machine or fridge. Payday loans are a flexible option if you are earning enough money to cover the repayments. Since they are paid off so quickly, they’re a lending option that you can get over and done with, rather than making monthly payments for months or years to come. Find out more by visiting Payday UK to find Pay Day Loans and other short term loan options. Payday UK is a broker, allowing you to search through various different financing options that might be suitable for you.
An overdraft can be an ideal type of credit to have access to if you’ve just bought a house and need to start re-building your savings. Overdrafts can be arranged by your bank, and are an extension of your normal bank account. While going overdrawn when you don’t have an agreed overdraft is not recommended since you will only end up being slapped with huge charges, most of the time there are no fees for using an arranged overdraft other than a monthly set interest rate. Since it’s attached to your bank account, you can simply continue buying what you need with your debit card as normal.
0% Credit Cards
Applying for a 0% interest rate credit card is a great way to get some extra funds for making your new house a home. You can use a credit card almost anywhere that you can use a debit card, making it the ideal option for buying items like small kitchen appliances, furniture, and decorating tools for your new home. With many cards now offering 0% interest for the first few months, you can get what you need for your home with some time to repay the balance before interest is charged, saving money in the process. Once your 0% interest period is almost up, you can then transfer the balance of your credit card to another 0% interest card, giving you more time to repay it without any interest added on.
Buy Now Pay Later
Buy now, pay later is becoming increasingly common as a flexible approach to paying for the things that you need. Services like Klarna, Clearpay, Zip, Zilch and Laybuy are available at a range of different retailers where you can purchase the things that you might need to get set up in your new home. Most of the time, these services work by allowing you to spread the cost of your purchase with weekly, biweekly, or monthly instalments. If you’ve got a lot of purchases to make to kit out your new home, this can be one of the most effective ways to spread the cost.
Hire Purchase Agreements
Last but not least, for buying larger items of furniture and big appliances for your home, a hire purchase agreement could be the best option for you. This involves making a monthly payment for the item that you’ve purchased until it is repaid. Some retailers who offer this kind of finance agreement will also offer the option to repay the full amount in a certain time period to benefit from paying no interest. For example, you may be able to either pay monthly for your new sofa or fridge with added interest, or if you can pay off the entire balance within the first six months, there will be no interest to pay. These agreements are often somewhat flexible with different options to suit your circumstances.
Owning a home is a great investment, but there is no doubt that it comes with many expenses. Whether you need to make repairs, decorate, or purchase furniture and other items for your home, these short-term finance options can help.