Compare Home Improvement Loans - Refurbish Your Home Cheaply

Finding the right finance to refurbish your home can be tough.

You need to ensure that you can borrow enough to cover the cost of the work but you may need flexibility to borrow more should the costs increase. However, you also need to be sure that you are paying an interest rate that is affordable to you.

Home Improvement Loans are a cost effective and straightforward way the money you need to refurbish your home. Our guide explains the main costs of home improvements and how you go about obtaining a home improvement loan.

Home Improvements Can Cost Thousands

Even the most basic home refurbishment can be expensive. Research from channel4.com has found that the average cost of a new fitted kitchen is £5,000 whilst a new, professionally fitted bathroom costs, on average, £3,250.

Consumer magazine Which? also reports that new windows can cost between £350 and £1,000 per window, external doors can cost up to £500 each and a new boiler can set you back up to £1,200.

And, if you are looking to add additional rooms to your house, a loft conversion can cost £18,000, a single storey extension can be £7,000 and a garage conversion up to £9,000.

 So, whatever home refurbishment you may be considering, it can cost several thousand pounds. So, you may need to look at the various ways you can borrow the funds you need to complete your home improvements. That’s where home improvement loans come in.

What are home improvement loans and how do you get one?

As the name suggests, home improvement loans are designed to allow you to borrow the money you need to fund redecoration or refurbishment projects in your home. They can either be for large or small amounts depending on the nature of the improvements that you plan to carry out; from small sums for redecoration to five figure loans for extensions and conservatories.

In order to apply for a home improvement loan you will need some equity in your property. Typically, lenders will lend up to 75-90 per cent of the value of your home, less any existing secured borrowings.

For example, if your property is worth £200,000 and you have a mortgage of £100,000, you will typically be able to borrow between £50,000 and £80,000 as a home improvement loan.

Of course, by undertaking refurbishment or improvements to your home, you may increase the property’s value. An extension, conservatory or loft conversion may well add in excess of £10,000 to your home’s value.

Your home improvement loan will also be based on your income and outgoings and your credit rating. You are likely to benefit from lower interest rates and more preferential borrowing terms if you have a clean credit rating. If you have a less than perfect credit record you may still be approved for a loan but your borrowing may be restricted or you may pay a slightly higher rate of interest.

Home Improvement Loans Versus Other Borrowing

One of the main reasons to consider a home improvement loan is because they offer lower borrowing rates than other forms of credit. As the loan is secured on your home, this lender is exposed to less risk allowing them to offer a lower rate.

It is also possible to fund home improvements using a credit card or personal loan, but you will generally find that the borrowing costs will be significantly higher than a home improvement loan.

To get your home improvement loan, fill our form on the right.