Loans for bad credit
There are lenders who specialise in offering loans to people with poor credit history, but your options may be more limited and the interest rates are often higher.
Home improvement loans
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What is a home improvement loan?
A home improvement loan is a personal loan that you take out to pay for renovations to your property to improve its value, or make it more suited to your needs.
The average sum MoneySuperMarket site users are seeking for a home improvement loan is £10000
A home improvement loan could be unsecured or secured against an asset of value such as your home.
Once approved, you usually receive the money as a lump sum and pay it back in monthly instalments with interest, meaning the total amount you pay back will exceed what you borrowed.
How do they work?
Compare loan deals and apply: 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
Get approved and receive funds: 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.
Invest the money in your home: You now have a lump sum to spend on renovating your home to update and add value to the property
Repay the loan: Pay your balance over the loan term through agreed fixed monthly loan repayments. You can pay it off early although you might face an early repayment charge.
Home improvement loan calculator
Use our new loan calculator to estimate the cost of your loan with ease. Based on MoneySuperMarket data from the past 3 months, the average APR for home improvement loans between £7,500 and £14,999 is 12.8%
Loan calculator
Find out what monthly repayments would be, how much you'll pay overall and how much you could borrow.
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Based on the information you supplied, you would be borrowing XXX and repaying the loan in XXX monthly instalments of . The total sum to repay, subject to XXX% APR over the full loan term would be XXX. This assumes there are no extra fees and that your payments are made on time and in full.
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Based on the information you supplied, you could borrow XXX at a monthly repayment rate of to be paid over XXX monthly instalments. Over the full loan term at XXX% APR, the total amount repayable would be XXX. This assumes there are no extra fees and that your payments are made on time and in full.
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The maximum personal loan is £50,000
If you need a larger amount, consider a secured loan, which will allow you to borrow more but uses your home as collateral. Be aware that lenders can sell your house if you fail to keep up with repayments.
What are the different types of home improvement loans?
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Secured loans
A loan that is secured can enable you to borrow larger amounts, making them better for bigger and most costly home improvements. 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.
What can I use my home improvement loan for?
You can use a home improvement loan, also known as a home renovation loan, for any sort of modifications to a property. While it's technically up to you what you use your loan for, some lenders have specific exclusions:
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What you can use one for
Repainting
Loft conversion
New fitted kitchen or bathroom
Extension
Garage conversion
Updating a driveway or patio
Garden landscaping
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What you can't use one for
To help buy a property or land in the UK or abroad, including holiday homes
As part of a mortgage deposit
To buy out a joint owner
To gift funds to someone to support someone buying a property, including stamp duty and solicitors' fees
Any business expenses
Am I eligible for a home improvement loan?
To be eligible for a home improvement loan in the UK, you need to:
Be a UK resident (excluding the Channel Islands and the Isle of Man)
Be 18 or over
Have a UK bank account
Have a regular source of income
A good credit score improves your chances, though some lenders offer loans to those with poor credit at higher interest rates.
Can I get a home improvement loan with bad credit?
Yes, it's possible to get a home improvement loan with bad credit, although you might not be able to borrow as much and the interest rate could be higher compared with those who have good credit.
There are lenders who specialise in borrowers with bad credit and when you compare loans with MoneySuperMarket, we’ll run a soft credit check first to show you your chances of being accepted for each deal.
This reduces the risk of being turned down when you apply and damaging your credit score.
CCJs, IVAs, and other forms of debt management will make it difficult to secure a loan at a good rate.
What do I need to consider before taking out a home improvement loan?
There are a few things you can do to find the best home improvement loan for you. These include:
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Only borrow what you need
The bigger the loan, the more you’ll have to pay back in interest. Try to budget well at the start of the project and apply for what you need – without leaving yourself short of funds
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Aim for the cheapest interest rate
The lower the interest rate or APR on the loan, the more money you’ll save on interest repayments. You can also save on total cost if you opt for a shorter loan period
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Consider a secured loan
If you’re struggling to borrow what you need with a personal loan, a secured loan might allow you to get a larger amount at a lower interest rate. But your home could be at risk if you can’t meet repayments
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Optimise your credit score
Making your credit score as high as possible will increase your chances of getting a better deal. Loan providers look at your credit rating to judge how much of a risk you are when lending.
What are the pros and cons of home renovation loans?
There are advantages and disadvantages to taking out a home improvement loan, such as:
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Advantages
Complete home improvement work more quickly
Add value to your property
Choice of loan options including secured and unsecured loans
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Disadvantages
You’ll pay back more than you borrow
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 poor borrowing history
How much can I borrow for home improvements?
The amount you can borrow for home improvements varies depending on the type of loan and your individual circumstances.
You can typically borrow between £1,000 and £50,000 for home improvement loans.
Some lenders offer loans where you can borrow up to 90% of your home's value, with a minimum of £5,000.
How quickly can I get a home improvement loan?
You can typically get a home improvement loan quite quickly, with some lenders offering same-day approvals or funds within a few working days.
You can apply for a home improvement loan at any time, even after purchasing your property. The speed of approval and disbursement of funds depends on the lender and the type of loan you choose.
What’s the repayment period on a home improvement loan?
Home improvement loans typically have repayment periods ranging from 1 to 10 years, with some lenders offering options up to 10 years. The exact repayment period offered will depend on the loan amount, the lender, and the borrower's individual circumstances.
How much do people borrow for home improvements?
The most common loan amount for those looking to fund a home renovation is between £7,500 and £14,999, based on MoneySuperMarket data from September 2024. Our chart shows how much people typically borrow.
Will base rate cuts make loans cheaper?
As of December 2025, the base rate stands at 4%, following a 0.25% cut. When the base rate is reduced, lenders often lower their Annual Percentage Rates (APRs) on loans, making borrowing more affordable.
However, not all lenders adjust their rates at the same pace. Some may quickly pass on the savings to borrowers, while others may delay or make smaller adjustments. Therefore, it's important to compare home improvement loans from different lenders to ensure you benefit from the most competitive APRs in the market.
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Is using a loan for home improvements the right choice for me?
Borrowing for home improvements can be a good idea if you need to finance a project that's too expensive to pay for upfront, but it's important to consider factors like interest rates, loan terms, and your ability to make repayments.
If you can afford the repayments, then sprucing your home up before putting it on the market, making it more energy efficient, or building an extension to increase the property’s value are all valid reasons for using loans to invest in your property.
How to compare home improvement loans with MoneySuperMarket
Find the right loan for you and see which rates you’ll be guaranteed to get.
Other ways of financing home improvement projects
Using your savings
One of the advantages of using your savings for home improvements, compared with a home improvement loan, rather than for holidays or a new car, is that as well as making your environment a nicer place you are making an investment.
A modern bathroom could add as much as 3% to its price tag, while a decent new kitchen could add 5%, according to estimates by Zoopla. It’s definitely something for homeowners to weigh up.
Using a 0% purchase card
If you need to borrow to pay for your refurb, a credit card can be a useful option – providing you use it carefully and the credit limit you’re given meets your requirements.
One of the advantages of using a credit card is it's subject to Section 75 protection, meaning your credit card issuer has equal responsibility with the seller if there are problems with the things you’ve bought or the company you’ve bought them from goes bust.
Borrowing additional money against your home
If you're a homeowner, beyond secured loans you may be eligible to apply for more money on your existing mortgage to finance home improvement projects.
Each lender will have its own lending criteria, but generally, they require you to be up-to-date with your mortgage payments, be a UK resident and the loan will carry a minimum term (e.g. three years).
Our expert says…
Don’t be fooled into regarding a home improvement loan as ‘not a real debt’ because you expect it to be written off by the increase in value to your property that the building work will surely bring. The average amount MoneySuperMarket users borrow is £10,000, which is a large amount of money.
Be confident you can meet those repayments, and if you’re focused on adding value to your home, ask a local estate agent whether your proposed improvements will really help boost the asking price before you start the ball rolling.
Kara Gammell Personal Finance & Insurance Expert
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MoneySuperMarket has won the Feefo Platinum Trusted Service Award, an independent seal of excellence, which recognises businesses that consistently deliver a world-class customer experience.
More tips for home improvement
Is borrowing to pay for home improvements a good idea?
Borrowing for home improvements can be a good idea if you know you can afford it.
Sprucing your home up before putting it on the market, making it more energy efficient, or building an extension to increase the property’s value are all valid reasons for using loans to invest in your property.
Can I add to my mortgage for home improvements?
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.
What is the difference between a home equity loan and a home improvement loan?
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.
What should I consider before borrowing?
Important considerations 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 history. How much you can borrow and the interest rate you’re offered will depend on your borrowing track record so take steps to get it in the best possible shape
If you take out a secured loan your home will be at risk if you get into difficulties and can’t repay it
Can I get a home improvement loan with bad credit?
You may be able to get a home improvement loan even if you have bad credit, although you might not be able to borrow as much and the interest rate could be higher.
There are lenders who specialise in borrowers with bad credit and when you compare loans with MoneySuperMarket, we’ll run a soft credit check first to show you your chances of being accepted for each deal.
CCJs, IVAs, and other forms of debt management will make it difficult to secure a loan at a good rate.
Am I eligible for a home improvement loan?
You will be eligible for a home improvement loan in the UK provided you meet the lender’s criteria. This is likely to include being aged 18 or over and a UK resident.
You’ll also have to pass the loan provider’s affordability checks to show you can meet your monthly repayments.
What should I do if I’m struggling to meet my repayments?
If you're struggling to keep up with repayments on a home improvement loan, contact your lender to explain your situation and explore potential solutions such as extending the length of the loan or taking a payment holiday (although interest may still accrue). You can also seek non-judgemental advice from debt charities such as StepChange, National Debtline, and Citizens Advice.
What is the most I can borrow for a home improvement loan?
The maximum amount you can borrow for a home improvement loan depends on various factors, such as your creditworthiness, income, and the lender's criteria. In the UK, it typically ranges from £5,000 to £100,000 or even more for secured loans, where you use your property as security.
Unsecured loans usually have lower limits. Always compare offers from different lenders to find the best option for your needs.
Lenders
Curious about who’s behind the loans? Take a look at each lender’s page below to learn more:
Reviewed on 12 Dec 2025 by
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Based on the median loan amount from enquirys made on MoneySuperMarket in November 2025 where the purpose of the loan was Home Improvement.
Based on the loan enquirys made on MoneySuperMarket between September 2025 and November 2025.
Based on the loan enquirys made on MoneySuperMarket between September 2025 and November 2025.
Accurate as of September 2024
Accurate as of September 2024
Accurate as of September 2024
Accurate as of September 2024
Based on 1 visit per month – average ticket value £15.30 (Oct 24)
T&Cs and restrictions apply, see here for more information
T&Cs and restrictions apply, see here for more information
T&Cs apply, click here for more information