One of the most popular ways of funding home improvements is by using a personal loan, in which there are two main types - secured or unsecured. This home improvement loan comparison table includes only unsecured personal loans. An unsecured loan is a personal loan which allows you to borrow up to around £25,000 over a number of years, regularly at a fixed rate of interest.
Before applying for a home improvement loan, check your credit score - it can be done for free with websites such as Clearscore or Noddle. If you don’t have a perfect credit score, it’s unlikely you’ll be able to access the best rates and by applying for loans such as a bank or supermarket loan, you’ll likely be declined - resulting in further damage to your credit file. Instead, check out our loans for bad credit comparison table.
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.
When applying for a home improvement loan, the prices offered by lenders will vary considerably with the best rates being reserved for those with good credit. These rates can be as low as 3.2% APR and are generally offered by the banks (compare bank loans) or supermarkets (compare supermarket loans). 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.
If you’re looking to borrow an amount less than £1000 it may be worth considering a credit card or overdraft instead of a personal loan. Loans of below £1000 are commonly offered by high-cost short-term lenders with much higher rates. If you are looking for a loan for less than £1000 you will be able to get a much better offer by applying for slightly more and spreading the repayments over a longer period.
Criteria will differ from lender to lender however take it from me you’ll have to be at least 18 years old, have a UK bank account, a valid debit card. You will also have to 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.
Home improvement loans come in a variety of shapes and sizes with the best rates only accessible to those with perfect credit scores. If you’re looking to borrow a small amount (less than £1000), then consider your options - you may be better off instead spreading a larger amount over a longer period, using a 0% credit card or increasing your overdraft. If you have bad credit, be careful who you apply with to avoid being declined - best bet is to check out our bad credit comparison table.
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