Home improvement loans

The type of loan you take out, whether it’s secured or unsecured, will depend on how could your credit history is and how much you need to borrow. 

Unsecured personal loans only allow you to borrow up to a certain amount without collateral, so they may be suited to small improvements. For major renovations, remodelling and extension work, however, a secured loan is probably the only way you’ll be able to borrow enough money.

Representative 29.9% APR

A renovation loan – another name for a home improvement loan – can be a good idea if you know you can afford it. 

There are several reasons why you might want to borrow money for home improvement: you might want to spruce your home up before putting it on the market, or perhaps you just want to spread out the cost of an extension. 

Additional borrowing is one reason to remortgage your home. In this case, you borrow more money on your mortgage and increase the overall size of your debt.

You can then use these extra funds to pay for home improvements if your lender agrees. Lenders are not obliged to lend you more money, and they can refuse requests – some lenders do not agree to remortgaging for home improvements.

A home equity loan is another name for a secured loan which uses your home as collateral. Home equity loans are lent to people who already have a mortgage, and whose property has gone up in value since they took that mortgage up – meaning they now have positive equity.

A home equity loan is borrowed against the increased value of the equity that has built up in your home since you bought it. So if your home has fallen in value, you might have more difficulty finding one.

When looking for a loan, price comparison sites such as MoneySuperMarket are a good place to start, as we can help you compare deals from across the market.

All you have to do is provide us with information about you and your finances, and tell us how much money you’re looking for, and we’ll present you with a range of options to suit your circumstances and needs. MoneySuperMarket uses what’s known as a ‘soft search’, so you won’t harm your credit score by comparing loans.