Why we all want to live on Ramsay Street

TV homes inspire us to do a spot of DIY, but how should you fund it?

Many of us dream of having abodes like those we see on our favourite TV programmes, according to new research from Halifax, and properties like those on Ramsay Street are top of the list.

The open plan modern bungalows of hit Australian soap opera Neighbours really appeal to UK homeowners, with 40% of families putting them top of their dream home list. Whether it’s the sunshine, the cheery disposition of the characters who reside in them, or perhaps the outdoor pools that many seem to have, Ramsay Street properties definitely appeal.

Another popular choice, despite the sky-high serious crime level, is the village of Midsomer, where the quaint cottages leave many thinking not ‘Who done it?’ but ‘What a charming kitchen!’

However there are some homes on TV that are not quite as coveted. Despite the warmth of the Weatherfield residents the terraces of Coronation Street leave many of us feeling cold, with only 8% of respondents to Halifax’s survey saying they were inspired by them.

Back to reality

Of course, the housing stock in the UK doesn’t exactly match up with the homes down under on Neighbours, and despite loving those houses, only 7% of us actually look for open plan living spaces when we go house hunting. But we are very open to the idea of doing a bit of DIY to create the perfect property.

Halifax says that less than one in five of us want to move into a house that needs no work doing, preferring to put our mark on our homes. A massive 62% would be willing to make structural changes to a house to get it the way we want it.

So what changes are we likely to make?

• 76% of homeowners between the ages of 18 and 40 would knock down walls to create their perfect living space
• 65% of all homeowners would add extra space by converting a loft or basement
• And nearly two thirds (65%) of us want to add an extension.

Finding the funding

Of course when it comes to DIY, there is always a cost involved and bigger projects can be expensive. How you pay for it depends on the job and your financial circumstances.

Some people have sufficient savings to fund their home improvement projects, and this is of course the best way to do it. However, many of us have to borrow to realise the home of our dreams. There’s nothing wrong with that -- as long as you don’t over-commit yourself.

But which method of borrowing is best for DIY?

Small jobs: If your project is straightforward and small, such as painting and decorating a room or getting a new carpet, it will probably cost a few hundred pounds -- perhaps anything up to £1,000. In this case your overdraft might cover it, but check the interest rate as some can be steep. However, some banks offer interest free overdrafts, such as Santander’s Preferred Overdraft Current Account, which charges you nothing for 12 months, after which the interest rate is a competitive 12.9%.

Your credit card might be even better. If you have a card that offers 0% on purchases, such as Virgin Money’s 12/12 Credit Card which offer interest-free credit for a year, you could pay for the paint or carpet and benefit from no interest while you repay the debt. Alternatively, buy them on your existing card and then switch the debt to a 0% balance transfer credit card. Barclaycard’s Platinum Card offers 16 months’ interest-free credit for example.

Medium-sized endeavours: Perhaps your planned project is a little bigger, such as a new kitchen or bathroom. In this case it might cost up to £10,000 and frankly your overdraft won’t cut it, and chances are your credit card won't either. In this case an unsecured personal loan could be perfect.

You can choose the amount you borrow and set your repayment term so your payments are manageable. They are easy to access and very quick to arrange, plus the money can be in your account within days. They also come with competitive rates of interest -- for example with Tesco Bank you can borrow £7,500 for just 7.7%.

Large projects: If you are planning an extension, loft conversion or structural changes to your home the costs could run very high indeed -- £10,000 to £30,000 or perhaps even more. Rather than an unsecured loan you may want to secure your borrowing. You can do this in one of two ways. A secured loan can be as easy to arrange as a personal unsecured loan, but is in fact quite different. The lender puts a second charge against your home and this means that if you fall behind on your repayments your home is at risk.

Secondly, you could remortgage to release some of the equity in your home. For example if your house is worth £200,000 and your mortgage balance is £100,000 you may be able to remortgage up to £130,000 and release the £30,000 to fund your project. Of course, your mortgage repayments will increase if you do this and you’ll repay the extra money for the rest of your mortgage term, so you could end up repaying a great deal in interest.

If you are thinking of remortgaging to release equity there are some great deals on offer. Below are some of my favourites:

Top 10 remortgage fixed rates

Top 10 remortgage variable rates

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