Quick Answer

How Can I Finance Home Improvements?

Reviewed by Jay Sabine – CeMAP, Cert CII (MP) – 29 years experience
CeMAP Professional - The London Institute of Banking & FinanceCert CII Member - Chartered Insurance Institute

Options include: 0% credit cards (small projects), personal loans (£1k-£25k unsecured), remortgaging (lowest rates, use equity), further advance (add to mortgage), secured loans (larger amounts). Best choice depends on project size and your equity.

Home improvement finance ranges from 0% credit cards for quick wins to remortgaging for major renovations. The cheapest option in interest terms is usually remortgaging, but fees and extending your mortgage term can make other options better value. Consider the improvement's impact on your property value too.

Key Points

  • 10% cards: small projects, no interest
  • 2Personal loans: quick, unsecured, £1k-£25k
  • 3Remortgage: lowest rates, fees apply
  • 4Further advance: add to current mortgage
  • 5Secured loans: larger sums, use equity
  • 6Consider ROI of improvement

Eligibility Criteria

  • Good credit score for best rates
  • Sufficient equity for remortgage/secured
  • Stable income to afford repayments
  • Property in good condition for valuation

Typical Timeframe

Personal loans: 1-7 days. Credit cards: 7-14 days. Further advance: 2-4 weeks. Remortgage: 4-8 weeks. Plan ahead for contractor timelines.

Next Steps

  1. 1Determine project budget
  2. 2Check your equity position
  3. 3Compare loan options and costs
  4. 4Get quotes from contractors
  5. 5Apply for finance before work starts

Why This Matters for Your Mortgage

Understanding these details helps you make informed decisions during the mortgage process. Every element of your application—from deposits to documentation—affects your approval chances and the rates you can access.

Lenders assess applications holistically, weighing multiple factors together. Knowing what they look for allows you to present the strongest possible application. This is particularly important for non-standard situations where lender criteria varies significantly.

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For more detailed information about this topic, visit our comprehensive guide:

Mortgages
CeMAP Professional - The London Institute of Banking & FinanceCert CII Member - Chartered Insurance Institute
Jay Sabine
CeMAP, Cert CII (MP)
29 Years Experience

Content reviewed: January 2026

CeMAP awarded by The London Institute of Banking & Finance. Cert CII (MP) awarded by the Chartered Insurance Institute.

Home Improvement Finance Options

TypeAmountTypical RateSecured?Term
Personal loan£1,000-£25,0003-15%No1-7 years
RemortgageBased on equity2-6%Yes5-35 years
Further advanceBased on equity2-6%YesMatch existing
Secured loan£10,000-£500,0004-10%Yes5-25 years
0% credit card£1,000-£10,0000%NoUp to 20 months

Which Improvements Add Value?

ProjectTypical CostValue AddedROI
Kitchen renovation£8,000-£25,0005-10%Good
Bathroom refurbishment£3,000-£10,0003-5%Good
Loft conversion£20,000-£65,00010-20%Excellent
Extension£30,000-£100,0005-15%Variable
New boiler£2,500-£4,5001-2%Moderate
Double glazing£5,000-£10,0002-5%Moderate

Remortgage vs Personal Loan

Remortgage

Pros

  • Lowest rates
  • Spread over long term

Cons

  • Fees apply
  • Restarts mortgage term
  • Home at risk
Personal loan

Pros

  • Unsecured
  • Quick approval
  • Fixed payments

Cons

  • Higher rates
  • Lower limits
  • Shorter terms
Key Decision Factors
  • Project size: Under £10k favours unsecured; over £25k usually needs secured
  • Your equity: 20%+ equity opens remortgage and secured loan options
  • Timeline: Personal loans are fastest; remortgages take 4-8 weeks

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