People who want to improve their property should consider using some of their home's equity as a means to fund their dreams – it's safe, sensible and even if you don't aim for it, it may make your property more valuable.

In fact, not many people look to invest in their home to increase it's value – according to Shelter, 74% of people who dream of improving their property want to create the ideal home rather than increase its value.

The charity says just 8% of people were aiming to make their home better to improve its value. This is unsurprising – people want beautiful places to live first and foremost – but it might be likely that property price improvement is an unintended side affect of a good home improvement.

Campbell Robb, chief executive of Shelter, says: "This survey reveals that homeowners are almost ten times more likely to want to create a better home than merely increase its value, showing that home is so much more to people than just a financial asset."

Shelter says kitchen extensions were the most popular home improvement, closely followed by conservatories and attic conversions. These are expensive, but by unlocking some of your home's equity they are affordable. And they will increase your home's value – so, with a bit of planning it might be that your dream home improvement doesn't cost you a lot in the long run because the increased value will pay for some of the subtracted equity.

To find out whether you can use your home to fund your dream home improvement, talk to a mortgage adviser. And with a good plan, some sensible decisions and some sound advice you may find that your dreams are cheaper than you first thought.

SOURCE: Shelter, 19/04/10

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New research has found that equity release is used by the elderly mainly to improve their home or pay off their debts – proving how flexible secured borrowing can be.

Key Retirement Solutions has found that equity release borrowers in the North are also most likely to spend the cash released from their home on improving them 69%, followed by the North West 67% and Yorkshire & Humberside 66%

It also found that the North and London are the most generous regions as 16% of those who opt to release equity in their home give some of the cash released from their homes via equity release as a gift to their families. But then it appears those in the North are also more focussed on their lifestyles, as nearly two thirds (58%) spend the money released from their home on holidays.

For those people with a property value of less than £200,000 home improvement is their biggest priority, which comes before repaying debts or mortgages. Looking at all property values those which stand at less than £200,000 are more likely to spend the cash on a holiday than any other value of property.

KRS also found that, as can be expected, those with a property value of more than £750,000 are the most generous, as a quarter give some of the cash as a gift to their family.

Dean Mirfin, KRS business development director says: "The most popular reasons at all ages do not come as a great surprise, being home improvement, repaying debt and holidays. Whilst few appear to release equity for an extra monthly income, many incomes are directly improved by the repayment of debt.

"The figures continue to show, that for the many thousands in or approaching retirement, the need and desire to release equity is targeted at those outcomes which will have a dramatic, positive, effect on their standard of living."

If you think you could benefit from using equity in your home in your retirement years, talk to your mortgage adviser today about the potential that is sitting in your home.

SOURCE: KRS, 09/03/09

To keep up with the latest news and comments on current financial affairs please visit the Secured Loan Blog.