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Home improvement loans & renovation loans

Whether it's a new kitchen, or a loft conversion, an home improvement loan is a great way to fund renovations to your property and increase its value at the same time. Find a home improvement loan with a low interest rate that offers a cheaper way to renovate your home.

  • Compare home improvement loans from leading providers
  • View terms, rates and repayments
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Home improvement loan deals

3 results found, sorted by lowest representative apr. How we order our comparisons.
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Monevo Personal Loan
Loan amount
£1,000 to £35,000
Representative APR
10.6% APR (£15,000 to £19,999)
Loan term
1 year to 5 years
Monevo is a credit broker and not a lender.
Representative Example: The representative rate is 10.6% APR (fixed) so if you borrow £15,000 over 5 years at a rate of 10.6% p.a (fixed) you will repay £319.57 per month and £19,174.37 in total.
Eligibility
UK Resident
Maximum AgeUnlimited
Minimum Age18 years
Minimum Income£7,000
Credit Rating Acceptedpoor
Everydayloans Personal Loan
Loan amount
£1,000 to £15,000
Representative APR
99.9% APR (£1,000 to £15,000)
Loan term
2 years to 5 years
No effect on your credit rating on initial application. No fees or charges. T&Cs apply.
Representative Example: The Representative APR is 99.9% APR (variable) so if you borrow £3,000 over 2 years at a rate of 71.3% p.a (variable) you will repay £238 per month & £5,706 in total.
Eligibility
UK Resident
Minimum Age21 years
Minimum Income£15,000
Credit Rating Acceptedpoor

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Our services are provided at no cost to you. We may receive a commission from the companies we refer you to, but this does not affect what you will pay for the product you choose.

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What is a home improvement loan?

A home improvement loan lets you borrow money to fund home renovations. They work like other loans, you borrow the amount you need and repay it over a set period of time. The only requirement is that you use it to improve your property. This could be anything from redoing your kitchen, upgrading a bathroom or converting a garage into an additional bedroom. 

Typically, these are unsecured personal loans, but you can secure them against your property, which can allow you to borrow more money. ​​How much you're allowed to borrow and the interest rate you pay will also depend on your credit rating, and your personal finances.

Is home improvement worth the cost?

It depends on what home improvements you make. Some common home improvements can include:

  • Loft conversion

  • Adding a conservatory

  • Adding an extra bedroom

  • Adding a bathroom

  • Redoing the Kitchen

  • Making the the living area open plan

According to some estimates, renovating your home can add anywhere between 10% and up to 30% in value.

Assuming your home is valued at £250,000, here's how much value you'd be able to add:

Percentage of value addedNew valuation
10%£275,000
15%£287,500
20%£300,000
25%£312,500
30%£325,000

Read our latest Renovation Nation Report on what home improvements UK homeowners made in 2021.

How to find the best loan for your home improvements

The best home renovation loan for you, will largely depend on your financial circumstances but in general, it’s best to look for the cheapest loan for the term you want to repay it over.

Before you compare home improvement loans, think about:

  • How much you need: Only borrow enough to cover the cost of your home improvements to avoid paying any unnecessary interest on your loan.

  • What you can afford to pay monthly: The term of your loan will affect how much you pay back each month. Use our loan calculator to check how much your repayments could be.

This comparison only shows personal unsecured loans, which you can apply for without needing to secure it against your property.

If you own your home, you could apply for a secured loan instead.

Here is more on the differences between secured and unsecured loans

Salman Haqqiquotation mark
If you're considering a loan for making home improvements, it's a good idea to know how much the renovation is going to cost. Also, check your monthly outgoings and whether you can afford the cost of repayments plus interest.
Salman Haqqi, Loans expert

How much does a home improvement loan cost?

The cost of a home improvement loan will depend on various factors such as:

  • Type of loan, i.e. secured or unsecured

  • How much you borrow

  • How long you borrow for

  • Your credit history

What are the disadvantages of a home improvement loan?

As with all credit products, there are some things you need to be aware of before taking out an home improvement loan

  • If you don't keep up with repayments, you'll likely be charged penalties for missing payments.
  • If your loan is secured against your home and you fail to keep up with repayments, the lender may repossess your home and sell it to recoup the debt.

Are there any alternatives to home improvement loans?

If you've been unable to be accepted for an home improvement loan, or you simply want to avoid getting one, there are some options you can consider:

  • Remortgage your home. You could release some of the equity from your home, and borrow more from your existing lender by remortgaging.

  • Mortgage advance. You could ask your mortgage provider for an additional loan, on top of your mortgage. But that would only be possible if you haven’t already borrowed the maximum amount. You can read more about borrowing against your home here.

  • Credit card. These are best suited for borrowing small amounts, which you can repay in a short period of time. If the home improvement is relatively minor, then a 0% money transfer card can be a great way to fund your home improvement work, without paying any interest.

Home improvement loans FAQs.

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