What is the best way to finance home improvements?

For smaller projects under £10,000, 0% credit cards or personal loans work well. Larger renovations benefit from remortgaging or further advances with lower rates. Secured loans suit those who can't remortgage. Compare total costs including fees and interest over the full term.

Learn more about self-build mortgages in our detailed guide.

What is the best way to finance home improvements?

The best option depends on amount needed and your circumstances. Small projects (<£10,000): 0% credit card or personal loan. Larger projects: remortgage or further advance offers lower rates. Very large: secured loan or remortgage. Compare total cost including fees.

Can I remortgage for home improvements?

Yes, if you have sufficient equity. You borrow more than you owe, releasing the difference as cash. Rates are typically lower than personal loans but you pay interest over a longer term. Your home is at risk if you can't repay.

How much can I borrow for home improvements?

Personal loans: typically £1,000-£25,000. Remortgage/further advance: up to 80-90% of your home's value minus existing mortgage. Secured loans: £10,000-£500,000 depending on equity. Credit cards: credit limit, often £1,000-£15,000.

Which home improvements add the most value?

Best ROI: loft conversions (10-20% value increase), kitchen renovations (5-10%), bathroom updates (3-5%). Extensions vary widely. Location matters - an extension in a desirable area adds more value than in a cheaper area where cost may exceed added value.

Should I use savings or borrow for home improvements?

Using savings avoids interest costs but reduces your emergency fund. Borrowing makes sense if: your mortgage rate is low, you can get 0% credit, or the improvement adds more value than interest costs. Keep 3-6 months expenses as emergency fund.

How long does home improvement finance take to arrange?

Personal loans: 1-7 days. 0% credit cards: 7-14 days. Further advance: 2-4 weeks. Remortgage: 4-8 weeks. Secured loans: 2-6 weeks. Start the process early if you're booking contractors with specific start dates.

Quick Answer

How Can I Finance Home Improvements?

Last reviewed: December 2025

Reviewed by Jay Sabine – CeMAP Qualified – 29 years experience

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

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

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

Mortgages

Jay Sabine

CeMAP Qualified

29 Years Experience

Content reviewed: 13 January 2026

Home Improvement Finance Options

Type	Amount	Typical Rate	Secured?	Term
Personal loan	£1,000-£25,000	3-15%	No	1-7 years
Remortgage	Based on equity	2-6%	Yes	5-35 years
Further advance	Based on equity	2-6%	Yes	Match existing
Secured loan	£10,000-£500,000	4-10%	Yes	5-25 years
0% credit card	£1,000-£10,000	0%	No	Up to 20 months

Which Improvements Add Value?

Project	Typical Cost	Value Added	ROI
Kitchen renovation	£8,000-£25,000	5-10%	Good
Bathroom refurbishment	£3,000-£10,000	3-5%	Good
Loft conversion	£20,000-£65,000	10-20%	Excellent
Extension	£30,000-£100,000	5-15%	Variable
New boiler	£2,500-£4,500	1-2%	Moderate
Double glazing	£5,000-£10,000	2-5%	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

How Can I Finance Home Improvements?

Key Points

Eligibility Criteria

Typical Timeframe

Next Steps

Related Questions

Home Improvement Finance Options

Which Improvements Add Value?

Remortgage vs Personal Loan

Pros

Cons

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Cons

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