Renovate Your Home with a Home Improvement Loan
Apply for a home improvement loan with Lending Expert and borrow up to £50,000 repaid over 1 to 30 years. Whether you are looking for finance to renovate your kitchens, bathrooms, interiors and extensions, we can help you compare competitive rates and terms across a range of secured, unsecured and personal loan products.
Complete our application form in less than 5 minutes and receive an instant decision on the screen with a list of viable options. Lending Expert works with the full market of secured and unsecured lenders, helping you get access to the most competitive rates and find the best terms for your home improvement loans.
All quotes are completely free, no-obligation and will not have an impact on your credit score. Simply click on ‘Get Started’ to begin your online quote today.
- Borrow £1,000 to £50,000
- Terms: 1 to 30 years
- Rates from 2.8% APR
- Can continue to live in your house
- Do not need to own the property outright
- Secured, unsecured and bad credit options available
- Can increase the value of your home by 20% or more
What Can Home Improvement Be Used For?
- Loft conversions and extensions
- Home offices
- Home gyms
- Central heating systems
- Gardens and patios
- Interior designs and renovations
Why Apply for Home Improvement Loans? What Do I Need to Consider?
Home improvement loans can be a very cost-effective and intelligent way to borrow money to renovate your home. Whether you are looking to expand your living area for your growing family or adjust your house to senior living, having additional rooms and extensions can make a big difference to your quality of life.
The main advantage of home improvement loans is that they can be a sensible investment, helping you increase the value of your property quite significantly, so you are getting a good return on any money that you have borrowed.
Think carefully about how much you need to borrow, how long for and whether you can afford it. It is important to cost out any renovations and get the best quotes from your builders and architects – and then make sure that you are borrowing just the right amount for the perfect length of time and do not end up under-borrowing or paying interest on a loan for longer than you need to.
What Options Are Available from Lending Expert?
Contrary to what many believe, home improvement loans do not always need to be secured against your home and you do not need to be living or owning the home to be eligible. Lending Expert offers a range of financial products to suit your needs including:
Personal loans – Also known as unsecured loans, it is simply used for personal reasons (non-business) and is not secured against your home. Your eligibility is based on your credit score, income and affordability – and the best rates will be available for those with the strongest credit scores. Looking to purchase a conservatory for £10,000, a personal loan could be perfect for this.
Secured loans – This is where the loan is secured against the value of your property and you are using any equity and value you have in the property to borrow money. Importantly, you may risk losing the home if you fail to keep up with repayments.
This type of loan is best suited for borrowing large amounts or if you are doing major renovations e.g new kitchens, loft conversions, extensions etc. It may also appeal to those with bad credit who may have been denied a personal or unsecured loan.
Business loans – If you are using a home improvement loan for investment purposes, you may look at a business loan. This may involve buying up a house and using a loan to pay for the refurbishments – with a view to rent it out to tenants or sell it for a profit. You may access different rates and terms when applying as a business – visit bridging loans and development finance for more information.
What is the Eligibility Criteria for a Home Improvement Loan?
- Over 18 years of age
- UK resident
- Good or fair credit score (for unsecured/personal)
- Must be owner of the property (if secured)
- Do not need to own the property outright
- Must have a regular income
- Can afford monthly repayments
- No recent bankruptcies, IVAs or CCJs
Can I Use Home Improvement Loans to Increase The Value of My Property?
Yes, home improvement loans can be an effective way to increase the value of your property, with loft conversions typically adding 20% to the house value, a new kitchen or conservatory adding 5% to 15% to your property and other amenities such as central heating also adding up to 5%.
You do not need to own the property to be eligible for a home improvement loan, in which case you could be a tenant and your application is unsecured and based on your credit status and affordability.
If you would like to use your home as security, you can apply for a secured home improvement loan which allows you to leverage the value of your property to get the finance you need. Using your property collateral can also be a suitable option for those with bad credit, CCJs and poor credit.
Other reasons for home renovation loans can be to increase the living space in your home, possibly because you have more children or would like to add a gym, home cinema, office or additional bedroom. Make sure that you do your research beforehand to understand the renovation costs. Some refurbishments such as changing existing rooms or adding a conservatory of less than 10 feet will not require planning permission, but adding extra floors and extensions may require permission from the local council.
Speak to Lending Expert About
- Refurbishment loans
- Renovation loans
- Construction loans
- Kitchen finance
- Bathroom finance
How Much Does a Home Improvement Loan Cost?
Lending Expert offers rates starting from 2.8% APR and this is usually available for very good credit scores or those looking to secure the loan against their property. The rates will vary depending on factors such as your credit score, affordability or the value of your property – and whether you choose to apply for an unsecured or secured home improvement loan.
The advertised rates are only available to around 51% of successful candidates, so note that the rates could change according to your criteria.
How To Get The Best Rates for Home Improvement Loans?
Home improvement loan rates are usually lowest for people with good credit scores (see unsecured loans) or borrowing against very valuable properties (see secured loans) – with rates starting from as low as 2.8%.
It is also important to compare home improvement loan rates and working with a broker like Lending Expert can help you get a full market overview based on your requirements and help you get the best rates possible.
Removing any outstanding debts will always help you access the lowest rates and maximise the amount you can borrow. Consider looking at ways to boost your credit score, whether it is repaying any other existing debts early or closing down any accounts and credit cards that you are no longer using.
Can You Get a Home Improvement Loan with Bad Credit?
Yes, you can still get a home improvement loan with poor credit.
If you have equity in your home and it is in good condition, you can use your home as security and borrow money for home renovations. Every lender is different and will take a view on adverse credit histories. Having a stable income and manageable amount of outstanding debt will certainly help your case for approval.
With bad credit, the amount you can borrow may be slightly limited and the rates you are charged may be a little higher than average.
What information Do I Need to Apply for a Home Improvement Loan?
Depending on whether you apply for a secured or unsecured home improvement loan, you will initially be required to provide your name, age, address, income and monthly expenditure.
A soft credit check will be carried out to test your eligibility. If you have a good credit score, you may be eligible for an unsecured loan product and if you want to borrow more money or have a bad credit history, you may opt for a secured loan product.
When securing finance against your home, you may need to provide further information including recent utility bills, proof of ownership and other documentation.
What Are The Risks?
If you are using a secured home improvement loan, you are using your home as security and if you cannot keep up with repayments, the lender or bank may be able to repossess your home to cover their costs. So staying on top of payments and making repayments on time is essential.
It is vitally important to cost out all your renovations and consider any other costs such as insurance, builders, damages, cost of renting a property elsewhere, cost of labour and materials.
You do not want to risk borrowing too much, or too little, and you need to find the perfect loan duration since the interest will continue to accrue and you want to avoid overpaying for your home improvement loan. The best option could be to borrow for a longer period of time, with the option to make an early repayment, assuming that there are low or no fees for doing so.
How is Lending Expert Different?
Lending Expert has spent years finding the best partners across the whole of the financial market.
When applying with Lending Expert, there are no upfront fees and we give our customers a list of loan options which have been sourced in real-time – allowing you to access the best rates and terms available.
Putting the control in the customer’s hands, you can decide which product you would like to proceed with, taking into account the amount you wish to borrow and how long for. Simply click on ‘Get Started’ to begin the process for a home improvement loan today!