How to finance home improvements

	Typical APR Variable	Max Int Free
	14.9%	56 days
	14.9%	56 days
	14.9%	56 days
	14.9%	56 days
	15.9%	56 days
* Based on Lowest Standard Rates and is not a full search of the whole market

Despite the uncertainty in the housing market, 3.25 million of us plan to move home over the next year or so, according to research from Alliance & Leicester (A&L). While the number may be a bit of a shock, it certainly isn't a surprise to learn that while waiting to put their home on the market, many would-be movers plan to improve their home to make it more attractive to potential buyers and get the best price.

Before you start knocking walls down or converting the loft, you need to find out what buyers are looking for and what will add to the value of the property.

Improve before you move

Alliance & Leicester said that the average spend on improving before moving was £3,000 with the majority of movers planning to redecorate, carrying out routine home maintenance and tidy up the outdoors area. Few were planning to splash out on larger improvements such as an extension.

A&L's research found that the most important factor for buyers is the number of bedrooms, followed by a well maintained property proving that spending on decorating and maintenance is worth every penny and is vital to finding a buyer.

Finding the finance

Now you know that spending money on your home is a good investment, the next step is to think about how to finance home improvements. If you plan to spend a few thousand, you might be able to find the finance out of your income by simply cutting back on luxuries over the coming year.

This has the advantage of avoiding having to pay interest on debt and of doing away with the need to apply for credit. Another way to save paying interest is by using a 0% credit card. As youll be spending, youll want a cheap introductory card for purchases such as Halifax's All in One Mastercard or Barclaycard's Purchase and Long Term BT card, which both offer 0% on purchases for 10 months.

Credit cards with 0% purchase rates

Would an overdraft do?

Or you could use the overdraft on your bank account, which has the advantage of flexibility. It is revolving credit and you can repay as much as you like and borrow it again. You have to be disciplined to make sure you repay it. Before applying, check out the interest rates with your bank. Interest rates on authorised overdrafts cost between 7.7% and 12.9% and unauthorised rates can go up to nearly 30% so beware of going over your limit.

Think about switching your current account because with some accounts you get a free overdraft but you usually have to pay in a certain amount each month.

Is your current account the best one for you? "Cheque out" the competition with Moneyextra's comparison services to find out.

Make the most of your savings

If you decide to use savings, try not to draw on funds from your tax free Individual Savings Account (ISA). If you withdraw funds from an ISA you will lose the tax free benefit on the amount taken out for good.

Taking money out of a no notice savings account won't do as much damage. Always make sure you are getting a top interest rate on your savings.

Which is the best savings account for you? Let Moneyextra guide you to the right choice with our comparison service.