It’s quick and easy
We’ll ask you a few questions about how much you’re looking to borrow and what you want to use the loan for.
Find the right home improvement loan for you
Compare loans from a wide range of providers
MoneySuperMarket is a credit broker not a lender. You must be 18 or over and a UK resident.
We work with most of the big brands to help you borrow the money you need
We’ll ask you a few questions about how much you’re looking to borrow and what you want to use the loan for.
We’ll show you a range of home improvement loan options from market-leading lenders to help you make the right choice.
We’ll run a soft credit check on your finances to show you your chances of being approved.
Search the market to find the right deal for you taking note of interest rates, monthly payments, any fees or charges and the amount you’ll repay in total.
When ready, apply for the deal you want. You may need to answer more questions but once approved you should receive the money within a few days.
Start paying off the loan through agreed fixed monthly repayments. You can pay it off early although you might face an early repayment charge.
There are advantages and disadvantages to taking out a home improvement loan, such as:
You can get your home improvement work completed more quickly
The renovation could be an investment – adding more value to your property
You’re likely to have a choice of loan options including secured and unsecured loans
As with all loans, you’ll pay back more than you borrow due to the interest
You risk losing your home if the loan is secured and you can’t meet repayments
The loan might be more expensive if you have a bad credit score
There are two main types of loan available, each of which is suitable for different sorts of work. Here’s what you need to know:
Personal or unsecured loans typically let you borrow up to £25,000 without the need to secure it on any collateral, such as your home. They often have a slightly higher interest rate or APR, and may be more suited to moderate and cheaper projects, such as redecorating and redesigning rooms.
These loans can enable you to borrow larger amounts, making them a better candidate for bigger and most costly home improvement projects. This is because the loan is secured against a valuable asset – usually your home. Rates are typically lower on secured loans but your home is at risk if you can’t repay.
How much a home improvement loan will cost depends on how much you borrow, the interest rate and any fees you have to pay.
The amount you can borrow and the rate you’re offered will also depend on a number of factors such as your income and outgoings and your credit score.
By way of example our table shows how much a £10,000 loan at 3% paid back over different terms might cost.
Use our loan calculator to work out the cost of different home improvement loan amounts.
Amount borrowed | Length of loan | Interest rate | Monthly repayment | Overall amount paid back |
|---|---|---|---|---|
£10,000 | 1 year | 3% | £846.75 | £10,161.03 |
£10,000 | 3 years | 3% | £290.63 | £10,462.81 |
£10,000 | 5 years | 3% | £179.51 | £10,770.43 |
Interest rates are for illustration purposes only.
When you apply for a loan, it’s not always clear what deal you’ll be offered or whether you’ll be accepted. But when you’re pre-approved for a loan, you know the deal you see is the deal you’ll get – you’ll know where you stand, with information that will help you make the right choice.
When you’re pre-approved, the loan amount, duration and interest rate are all confirmed
When you know what you’ll be able to borrow and how much it will cost, you can choose a loan that’s right for you
This helps protect your credit score as you’re less likely to be rejected when you apply
Find the right loan for you and see which rates you’ll be guaranteed to get.
Tell us a little about yourself, your finances and the loan you want
We’ll search through loans from a wide range of lenders on the market
You’ll be able to sort loans by the overall cost and the likelihood you’ll be accepted
There are a number of things to consider before taking out a loan and the type of loan – unsecured or secured – that might suit your needs best.
An unsecured personal loan will typically only allow you to borrow up to a certain amount (around £25,000 depending on your credit score), but your home isn’t at risk if you fall into difficulties. With a secured loan you may be able to borrow more and at a more competitive interest rate, but your home is the security against the loan and could be at risk if you fall into repayment difficulties. For major renovations, remodelling and extension work, a secured loan is likely to be the only way you can borrow the money you need. 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 including sprucing your home up before putting it on the market or building an extension to increase the property’s value.
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 show you a range of options to suit you. MoneySuperMarket uses what’s known as a ‘soft search’, so you won’t harm your credit score by comparing loans.
There are a number of important considerations with home improvement loans. These include:
How much you need to borrow and whether you take out a secured or an unsecured loan
Affordability. Be sure you can meet the monthly repayments. Our loan calculator can help with this
Your credit score. How much you can borrow and the interest rate you’re offered will depend on your credit score so take steps to get it in the best possible shape
Risks. If you take out a secured loan your home will be at risk if you get into difficulties and can’t repay lt on your loan, you may lose your home.
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You might be wondering if we work with all the companies in the market, or if our commercial relationships with our partners might make us feature one company above another. We’ve got nothing to hide, and we want to give you clear answers when it comes to questions like these, so we’ve pulled together everything you need to know on this page.
