Input your details and requirements. It takes just minutes. Then we can search for great deals.
Comparing quotes gives you the best chance of making a saving. You know it makes sense.
Compare, accept a quote, then we'll give you cashback as well! It pays to use Quidco.
If you have a good credit rating and are confident you can afford your monthly repayments, a home improvement loan could be a good option for funding property renovations. The better your credit score the more likely you are to secure a more favourable loan rate.
If you are looking to tackle smaller projects such as redecorating or updating your kitchen, an unsecured home improvement loan is likely to be the more appropriate choice as it will enable you to borrow sums of up to £25,000 and you won’t need to secure this against an asset.
However, if you’re planning larger works such as an extension or loft conversion, a secured home improvement loan will allow you to borrow much larger amounts of up to £100,000. Secured loans are also generally easier to get accepted for if you have a lower credit score due to the fact you’ll use your home as security.
Whether you’re looking to fund simple DIY tasks or pay for major property renovations, a home improvement loan could offer a competitive way to do so. Before taking the plunge, however, it pays to weigh up your options carefully and remember that if your loan is secured, you risk losing your home if you cannot repay it.
Rachel Wait - Personal Finance Journalist
Before applying for a home improvement loan it is worth considering the following:
How much do you need to borrow?
This will help establish which type of loan you need, but more importantly you will need to ensure you don’t borrow more than you can afford to pay back.
What loan term do you need?
Loan terms are typically around one to seven years for unsecured loans, and up to 25 years for secured loans. When considering how long you need to repay your loan, keep in mind that while a longer loan term can reduce your monthly repayments, you will also end up paying more interest overall.
What does your credit rating look like?
It’s also worth checking your credit score to see how likely you are to get accepted for a loan before you apply. If your credit score isn’t up to scratch, take steps to improve it such as paying bills on time, registering on the electoral roll and correcting any mistakes on your credit report.
Is there a fee for repaying your loan early?
Some loans have early repayment charges that kick in if you want to pay off your loan before the end of the term. Always check carefully before applying.
If you don’t qualify for a home improvement loan or you would simply prefer not to use one, there are alternatives to consider:
Savings: If you’ve built up a sizable savings pot, it can make better financial sense to use some of these funds to pay for home improvements rather than borrowing.
Credit cards: For smaller projects, you could consider using a zero-interest purchase credit card. You won’t usually be able to borrow as much as you could with a loan, but you will be able to spread the cost of your spending interest-free for a number of months.
Remortgage: You may be able to borrow extra money by taking on a bigger mortgage from your existing lender. Just keep in mind that although mortgage rates are currently low, you could end up paying more in interest overall if the term is longer than for a personal loan.
Further advance: Your mortgage provider may agree to give you an additional loan on top of your mortgage. This additional loan is charged at a separate interest rate but will be considered part of your total borrowing. Again, however, you could end up paying more in interest compared to a personal loan.
Please note: by clicking the "Get a quote" button, you consent to your details being used by the comparison partner. Don't worry they won't call or email though.
When using the Compare service, you must take reasonable care to answer questions fully and accurately and if you volunteer other information, you must take reasonable care to ensure that the information is not misleading.