Home Improvement loans.

One of the most popular ways of funding home improvements is by using a personal loan. Use the Choose Wisely loan search to compare options and start making your renovation dreams a reality.


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Representative 49.7% APR. Representative Example: Amount of credit: £1,200. Interest rate: 0.34% per day for up to 75 days (25.5% (variable) per annum). Representative 49.7% APR (variable). For example, if you borrow £150 for four days, the interest per day would be £0.51 and the total interest would be £2.04 representing four days at £0.51 per day.
Choose Wisely is a trading style of Choose Wisely Limited and is a free to use price comparison website. Choose Wisely Limited is authorised and regulated by the Financial Conduct Authority as a credit broker not a lender, firm reference number 730574 and is registered with the Information Commissioner’s Office number Z3106681.

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Table of contents

Written by Andrew Freelander
Read time: ~5 mins
Published: 4th April 2016 Updated: 11th August 2021

Your home is your humble abode,where you and family spend the majority of your time. Whether it’s a new kitchen, an extension or just general repairs, making home improvements can be a great way of not just improving your day to day living but also increasing the value of your property. However, as good as this sounds, home improvement does come at a price and with many projects requiring a significant initial financial outlay a lot of us will have to resort to personal finance to fund the work.

What is a home improvement loan?

A home improvement loan is typically an unsecured loan and is used, as the name suggests, to help fund improvements to your home.

What could a home improvement loan help you with?

Home improvement loans are often used to fund significant changes to your home, such as the following

  1. Extension

  2. Upgrading your kitchen

  3. Loft conversion

  4. Redecorate

  5. Garden Makeover

How do home improvement loans work?

A home improvement loan works in exactly the same way as any other unsecured personal loan. You will be required to submit an application with a direct lender who then decides whether or not to lend to you. If approved, you will receive a lump sum paid into your account. You will then repay this money to the lender, with interest, in monthly repayments.

If approved the amount you are lent and the repayment terms will be outlined in your agreement.

Do you always get the advertised rate?

No not necessarily. Lenders can advertise the rate that 51% of their approved applicants receive. This is called a Representative APR and if approved is by no means a guarantee.

How much can I borrow with a home improvement loan?

This depends on a number of factors such as your personal circumstances, credit history and income. If you are considering an unsecured loan then amounts typically range from £100 to £25,000. If you look at using an asset, such as your property as security against your repayments, then the loan amounts available can be much larger.

How much does a home improvement loan cost?

When applying for a home improvement loan the prices offered by lenders will vary considerably depending on your circumstances, the lender you apply with and whether or not you secure the loan against an asset. The best unsecured personal loan rates are reserved for those with a great credit history. These top rates are generally offered by the banks or supermarkets. It is always worth shopping around as securing the best terms and lowest interest rates can make a huge difference to the amount you have to repay.

Can you get a home improvement loan with bad credit?

If you have a bad credit history you still have options when it comes to sourcing a home improvement loan. Your chances of acceptance will increase if you can provide security for your lender repayments. This could be in the way of getting a friend or family member to act as a guarantor or you could look at securing payments against your home. If you do choose to go down this route, there are the obvious warnings. If you secure against your home then your property will be at risk if you miss your repayments.

Will I be accepted for a home improvement loan?

Criteria will differ from lender to lender however you’ll have to be at least 18 years old, have a UK bank account, a valid debit card and be able to convince the lender that you’ll be able to meet the repayments. If you are applying for a bank or supermarket loan then you’ll need a spotless credit score.

The bottom line when applying for a home improvement loan is to make sure you can comfortably afford the repayments before applying. Any doubt, do not apply and reassess whether the project is really necessary.

Home Improvement loan FAQs

Do I need a home to get a home improvement loan?

No. A high number of Unsecured personal loan lenders will not require you to be a homeowner.

How can Choose Wisely help me find the best home improvement loan?

Choose Wisely works with an extensive panel of lenders to provide you with options to compare, whatever your circumstances. By completing a quick 2 minute application you can compare offers from a range of UK lenders without impacting your credit file.

Written by
Andrew Freelander
Take Control Author at Choose Wisely

Andrew joined Choose Wisely 5 years ago, originally working in a design capacity to make sure the website was simple to use. Most notably he worked with the Consumer Finance Association to design the comparison table of choice for High-Cost Short Term Finance products.

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Important Information.

All of the information in this guide is correct at the time of writing.

Rates shown are quotes based on your personal circumstances, are subject to status and are available to those aged 18 and over. Rates available range from a minimum of 3.9%APR to a maximum of 1575%APR Representative and loan repayment periods range from 3 to 60 months.

[*][†] Once accepted, your loan can be transferred to you in as little as 15 minutes. The time that it takes for the loan to show in your bank account will depend on your lender and your bank.

If you need financial advice you can visit stepchange, speak to citizens advice, call the national debtline or speak to moneyhelper.org.uk.

If you've been declined, please refer to your credit report to gain an understanding of why before making further applications.
Your score can be accessed for free via any of the main credit reference agencies such as Credit Karma, Clearscore or Experian.