You can use a personal home improvement loan to fund major or minor changes to your property. Like with other personal loans, you can borrow a lump sum, then pay it off over a period of months or years. In this page you can find all of the key information you need to know about home improvement loans, as well as the top deals on the loans currently available in the UK.
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We’ve teamed up with Creditec
- Check your eligibility for a loan before you apply
- No effect to your credit score
- Representative 26.9% APR
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What are loans for home improvements?
Paying for property renovations can be very expensive, so spreading the cost can be a great way to make it more affordable. It can also help you manage the often inevitable unexpected costs that can pop up during a long building project. Of course, home improvement loans are not free. The downside to opting for a loan over using your savings or paying with a 0% purchase credit card will be the interest charges that accrue.
How much home improvement loans cost depends on how much interest is charged, which varies depending on the amount borrowed and the repayment period. Your credit history and financial circumstances will also play a significant part in the loan terms you are offered.
How to find the best loan for you
Comparing different loans is a key part of getting the best deal for you. Money to the Masses has made this process easier by partnering with Creditec*, an online comparison service. Instead of trawling through countless different provider websites hunting for the best deal, Creditec’s personalised search results will show you the key details you need to know, all in one place. If you are eligible, your tailored list will feature the loans that you are more likely to be accepted for, cutting down the chance of any applications you make being rejected should you go on to complete a full application with the provider. Your search results are built using a soft credit search, so there will be no damage to your credit score. Click on this link to get started*. If you are not eligible for a loan with any of the providers on the panel then you may be shown a variety of alternative products that may be suitable for you. You are under no obligation to continue with them if you feel they are not suitable for your circumstances.
Best loans for home improvements – January 2025
We have used the representative examples of repaying a £1,000 loan over three years, a £5,000 loan repaid over five years, a £10,000 loan repaid over five years, a £20,000 loan repaid over five years and finally a £25,000 loan repaid over five years to source the figures in this table. Borrowing more or less will often change the advertised rate of interest, as will altering the loan term. It is important to remember that the loan amount and rate you are ultimately offered will be based on your credit history and financial circumstances, so the representative APR you are offered may differ to the amount you see in the tables below.
The loan options displayed on this page are unsecured loans. It is important to explore all options as you may find that a secured loan is a better option for you, especially if you are undertaking a significantly expensive project or have a less than stellar credit history. Another option could be to consider remortgaging.
The best rates on a £1,000 loan
| Loan provider | Representative APR (from) | Available loan term | Available loan amount | Monthly payment | Eligibility checker? |
| Santander | 13.5% | 1 - 5 years | £1,000 - £25,000 | £33.56 | No |
| M&S Bank | 14.9% | 1 - 7 years | £1,000 - £25,000 | £34.16 | Yes |
| AIB (NI)¹ | 16.4% | 1 - 5 years | £1,000 - £25,000 | £35.01 | No |
| HSBC | 16.9% | 1 - 5 years | £1,000 - £25,000 | £35.02 | No |
| Zopa | 22.9% | 1 - 5 years | £1,000 - £25,000 | £37.57 | Yes |
| TSB | 27.9% | 1 - 7 years | £300 - £50,000 | £39.69 | No |
| Halifax | 29.7% | 1 - 7 years | £1,000 - £50,000 | £40.44 | Yes |
Representative APR is based on a 3-year loan term
¹You must be an existing personal current account customer with AIB (NI) and registered for Online Services
The best rates on a £5,000 loan
| Loan provider | Representative APR (from) | Available loan term | Available loan amount | Monthly payment | Eligibility checker? |
| Tesco Bank | 7.2%¹ | 1 - 10 years | £1,000 - £35,000 | £98.94 | Yes |
| Santander | 7.2% | 1 - 5 years | £1,000 - £25,000 | £98.94 | No |
| M&S Bank | 7.4% | 1 - 7 years | £1,000 - £25,000 | £99.38 | Yes |
| AIB (NI)² | 7.9% | 1 - 5 years | £1,000 - £25,000 | £100.83 | No |
| HSBC | 9.9% | 1 - 5 years | £1,000 - £25,000 | £104.95 | No |
| TSB | 11.9% | 1 - 7 years | £300 - £50,000 | £109.45 | No |
| Halifax | 17.9% | 1 - 7 years | £1,000 - £50,000 | £123.14 | Yes |
| Zopa | 22.9% | 1 - 5 years | £1,000 - £25,000 | £187.68 | Yes |
Representative APR is based on a 5-year loan term
¹Clubcard members receive a preferential rate, non-members will get from 7.9% and pay £100.49 a month
²You must be an existing personal current account customer with AIB (NI) and registered for Online Services
The best rates on a £10,000 loan
| Loan provider | Representative APR (from) | Available loan term | Available loan amount | Monthly payment | Eligibility checker? |
| Tesco Bank | 6.1%¹ | 1 - 10 years | £1,000 - £35,000 | £193.02 | Yes |
| TSB | 6.2% | 1 - 7 years | £300 - £50,000 | £193.47 | No |
| Santander | 6.2% | 1 - 5 years | £1,000 - £25,000 | £193.47 | No |
| M&S Bank | 6.2% | 1 - 7 years | £1,000 - £25,000 | £193.47 | Yes |
| HSBC | 6.6% | 1 - 5 years | £1,000 - £25,000 | £195.23 | No |
| Halifax | 6.7% | 1 - 7 years | £1,000 - £50,000 | £195.67 | Yes |
| AIB (NI)² | 7.1% | 1 - 5 years | £1,000 - £25,000 | £197.85 | No |
| Zopa | 22.9% | 1 - 5 years | £1,000 - £25,000 | £269.40 | Yes |
Representative APR is based on a 5-year loan term
¹Clubcard members receive a preferential rate, non-members will get from 6.5% with monthly repayments from £194.79
²You must be an existing personal current account customer with AIB (NI) and registered for Online Services
The best rates on a £20,000 loan
| Loan provider | Representative APR (five-year term) | Available loan term | Available loan amount | Monthly payment | Eligibility checker? |
| Tesco Bank | 6.1%¹ | 1 - 10 years | £1,000 - £35,000 | £386.05 | Yes |
| TSB | 6.2% | 1 - 7 years | £300 - £50,000 | £386.94 | No |
| M&S Bank | 6.2% | 1 - 7 years | £1,000 - £25,000 | £386.93 | Yes |
| Santander | 6.4% | 1 - 5 years | £1,000 - £25,000 | £388.70 | No |
| Halifax | 6.7% | 1 - 7 years | £1,000 - £50,000 | £391.35 | Yes |
| AIB (NI)² | 7.1% | 1 - 5 years | £1,000 - £25,000 | £395.69 | No |
| HSBC | 7.4% | 1 - 5 years | £1,000 - £25,000 | £397.54 | No |
| Zopa | 22.9% | 1 - 5 years | £1,000 - £25,000 | £538.80 | Yes |
Representative APR is based on a 5-year loan term
¹Clubcard members receive a preferential rate, non-members will get from 6.5% with monthly payments from £389.58
²You must be an existing personal current account customer with AIB (NI) and registered for Online Services
The best rates on a £25,000 loan
| Loan provider | Representative APR (five-year term) | Available loan term | Available loan amount | Monthly payment | Eligibility checker? |
| Tesco Bank | 6.1%¹ | 1 - 10 years | £1,000 - £35,000 | £482.57 | Yes |
| TSB | 6.2% | 1 - 7 years | £300 - £50,000 | £483.67 | No |
| Santander | 6.4% | 1 - 5 years | £1,000 - £25,000 | £485.88 | No |
| Halifax | 6.7% | 1 - 7 years | £1,000 - £50,000 | £489.18 | Yes |
| M&S Bank | 6.9% | 1 - 7 years | £1,000 - £25,000 | £491.40 | Yes |
| AIB (NI)² | 7.1% | 1 - 5 years | £1,000 - £25,000 | £494.61 | No |
| HSBC | 7.4% | 1 - 5 years | £1,000 - £25,000 | £496.92 | No |
| Zopa | 22.9% | 1 - 5 years | £1,000 - £25,000 | £673.50 | Yes |
Representative APR is based on a 5-year loan term
¹Clubcard members receive a preferential rate, non-members will get from 6.5% with monthly payments from £486.97
²You must be an existing personal current account customer with AIB (NI) and registered for Online Services
Partner SpotlightCheck your loan eligibility
We’ve teamed up with Creditec
- Check your eligibility for a loan before you apply
- No effect to your credit score
- Representative 26.9% APR
- Simple to use
How loans for home improvements work
Getting a home improvement loan can be broken down into five important steps:
- Price up your renovations: Get a range of quotes from relevant professionals to work out how much your home improvements will cost. Make sure to take into account how the price may change during the project and what unexpected costs may arise.
- Compare home improvement loans: Once you know how much you need to borrow, you can compare the different options in the relevant table on this page.
- Apply for you home improvement loan: The application process should be relatively quick, depending on your financial circumstances and credit history. You can usually complete the whole process online, though some providers offer branch or phone options.
- Start your renovations: Once your application is approved, it should not take long for you to receive the money. This is your green light to get your home improvement project started.
- Repay your loan: You will repay your loan through a number of fixed monthly repayments, though you may have the option to pay it back early.
The key figures in a loan for home improvements
Here are the key figures to pay attention to when you compare loans for home improvements:
- APR (annual percentage rate) - This is the cost of borrowing the money in the first year and broadly defines which deal is the cheapest. It includes the interest you are being charged as well as any standard fees charged by the lender.
- Representative APR - This is the APR that the lender expects at least 51% of successful applicants to be offered. You may ultimately get a higher or lower figure, but it is a useful way to compare providers at the start of your comparison.
- Loan amount - This is the amount of money you are borrowing. Most of the unsecured loan providers featured on this page will lend between £1,000 and £25,000. Some people may be able to borrow much more, while others may not be offered the full amount they wish to borrow.
- Loan term - The period of time you are borrowing the money for. Most lenders in this article offer between one and seven years to repay your loan, but longer terms may be available.
- Loan fees - This is what you will be charged in addition to repaying what you have borrowed. Fees will vary between lenders, so it is important to check before you apply.
- Early repayment charge - This is an extra charge some lenders add on if you try to repay your loan in full before the end of the term.
- Credit score - This is a numerical rating of how reliable or trustworthy a borrower you are, based on your credit history. A low credit score can suggest your loan application will be rejected. A high score is usually a good sign that you will be offered the best rates. Read our top tips to improve your credit score before you apply.
How much can I borrow with a loan for home improvements?
How much you can borrow with a personal home improvement loan will depend on your financial circumstances and your credit history. In other words, how much you can afford to repay and how much you can be trusted to repay based on your borrowing history.
You will also be limited by the maximum amount a provider will lend. Many mainstream lenders cap personal loans for home improvements at £25,000 or £50,000, though some specialist lenders may go higher. If you need more than £50,000 to complete your home improvements, you may find that a secured loan or remortgaging are better options. You could be able to borrow much more money and potentially spread your repayments over a longer period. However, your home will be at risk and could be sold to settle the debt if you are unable to repay what you owe.
What can I use a loan for home improvements for?
You can use your home improvement loan to get a new kitchen, a new bathroom, convert your loft into a bedroom, convert your garage into a study, build a conservatory or even an extension. If it is physically possible, within planning rules and affordable, you can spend your money however you like.
Ultimately, once the money is in your account there is no rule dictating that you must spend the cash on home improvements at all. As long as you are not breaking your lender's rules – which usually ban spending for gambling, business purposes, illegal activity or buying property – you can put the money towards any expense you choose.
Some lenders will encourage you to take out a loan for home improvement in order to boost the energy efficiency of your home. This could involve installing better insulation, adding solar panels or changing your main source of energy to something like a heat pump. These kind of changes can reduce your household energy bills and help offset the cost of the loan and the work itself.
Pros and cons of a loan for home improvements
Here are the key pros and cons to getting a loan for home improvements:
Pros of a loan for home improvements
- Spread cost of works - With a loan, you can pay for the cost of your home improvements over many months or years.
- Access funds quickly - Once your loan application is approved, you should be able to access the funds very quickly.
- Start project earlier - You do not need to spend years saving up the money you need for your renovation.
- Budget fixed repayments - You know how much you will need to pay each month to clear your debt.
- Spend money on what you need - You have the flexibility to put the money towards urgent priorities as they arise. You could even choose to spend the loan on something other than home improvements.
- Cut your household bills - Some energy-efficient home improvements can transform how much you spend on energy bills and even eventually pay for themselves in cost savings.
Cons of a loan for home improvements
- Expensive to borrow - Borrowing is more expensive than funding home improvements through simply saving up the cash. This is because you will need to pay interest on your debt, plus any fees or charges.
- Very expensive to borrow if you have bad credit - People with bad credit may find that the cost of borrowing is higher than they expected.
- Missed repayments can damage your credit score - Missing a repayment on a personal loan for home improvements will usually trigger a late fee and leave a mark on your credit file that future lenders will be able to see.
Alternatives to a loan for home improvements
There are a few different alternatives to taking out a personal loan for home improvements. Depending on how much your project will cost, how long it will take to complete and what forms of payment are accepted, it may be better to choose one of the following options:
- Remortgaging - You could remortgage and borrow more money against your home to provide the cash injection for renovations. This is a popular option for major works that will significantly change the value of your home, but keep in mind that missing payments on your new, higher mortgage will put your home at risk.
- Secured loan - A secured loan will require collateral, usually your home, that will be at risk of being sold to cover what you owe if you cannot repay the debt. However, you can often borrow more with a secured loan than with an unsecured loan.
- Credit card - If you can get a top 0% purchase credit card, you may not need to pay any interest on your debt. However, credit cards are not always accepted as a payment method, so the viability of this option will depend on the type of improvements you are planning.
- Savings - You could avoid the cost of borrowing altogether by dipping into your savings. This may mean you need to wait a little while longer before you can get your project up and running and could mean you have to stick to a tight budget. However, you will not need to pay interest and may find that what you put away grows faster than you expected if you pick one of the top savings accounts.
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