Making your house sustainable but not saved enough money? A personal loan offers a solution. You borrow a fixed amount against a fixed interest and duration. Moreover, the interest that you pay is deductible in most cases. So you not only know where you stand, it is also financially interesting.
Before you take out an insulation loan, it is important to make a good comparison. Then pay attention not only to interest, but also to duration and conditions.
Loan for insulation, what to look for?
If you have a new home, the insulation of your home is usually okay. Older houses are often less well insulated. Houses from the 60s and older in particular have originally no or (now) poor cavity wall insulation.
By properly insulating you not only save on heating costs, it also provides a comfortable feeling of warmth, is good for the environment and ensures an increase in the value of your home. Of course you don’t want to waste these benefits by taking out a much too high personal loan. Therefore, always compare the largest selection of loans first. Pay particular attention to:
- interest. Always choose the lowest possible interest. The differences between the providers are huge. The difference between the lowest and highest interest is no less than 4.1 percent.
- Duration. A longer duration has lower monthly charges. This seems attractive. But these lower monthly charges are not in proportion to the extra installments. Below the line you are really cheaper with a shorter duration.
- Conditions. Each provider uses different conditions, which determine the final price of the loan. Always read the conditions carefully and do not be faced with unpleasant surprises.
Tip! Your home completely isolated? Then don’t forget to adjust your home insurance!
Loan isolation, how much to borrow?
How much money you need to borrow to insulate your home is hard to say. This depends on your personal situation. Do you live in a terraced house or detached? Do you opt for roof insulation or cavity wall insulation?
Alternatives borrow money for insulation
As indicated, the personal loan is the most suitable as an isolation loan. However, there are still a number of options for borrowing money for isolation, for example the revolving credit or the green loan:
- Revolving credit – The revolving credit, together with the personal loan, is the most popular type of loan. Compared to the personal loan, the revolving credit is much more flexible. For example, you can unlimited withdrawals and repayments up to a certain amount and you only pay interest on the part actually taken up. The big disadvantage is that you do not know in advance how much the loan will ultimately cost you and the temptation to borrow more than is strictly necessary is always present.
- Green loan – There are a number of agencies that provide so-called green loans. These are specially created to make your house more sustainable. Ideal as a loan to insulate your home. However, there are often a lot of conditions attached to the green loan and there are only a limited number of providers, so that the advantage of comparison is lost.