Home Improvement Loans

What is a home improvement loan?

A home improvement loan is a personal loan that’s used to update, improve and renovate your property. Repayments can be spread over a period of time that works for you. Many people find this type of loan can help cover the cost of larger refurbishment jobs.

Possible lenders offer a choice of secured or unsecured home improvement loans, providing a choice for your personal situation. However, it’s important to remember that there are risks associated with both. Secured loans will offer lower interest rates, but your home will be at risk if you fail to meet repayments. And while unsecured loans are not secured against your assets, lenders can start collection or court action if you fail to pay.

Benefits of choosing a home improvement loan

Home improvement loans can ensure you have the funds to renovate your home, up front. This could help cover the initial outlay you need in order to cover the expenses of renovation and any building work.

You’ll get a fixed rate on repayments, which means you’ll have a clear idea of how much you can expect to pay back over time and per month.

Risks of choosing a home improvement loan

If you take out a secured home improvement loan, you must ensure you can keep up with the repayment schedule. Consistently missing payments could put your home or other assets at risk and could lead to court action and county court judgements (CCJs), as well as impacting your credit score.

If you apply for an unsecured home improvement loan, your payments could end up being higher. This may mean you have cashflow problems if renovations end up becoming more costly than you anticipated - for example, if building work runs on longer than planned.

Difference between secured and unsecured home improvement loan

Secured and unsecured home improvement loans provide borrowers with a choice of how they want to obtain funds upfront.

If you own your home, or have assets you could use as collateral, a secured loan can work out cheaper long term than unsecured loans. This is down to typically better interest rates and larger amounts available.

However, an unsecured loan doesn’t require any assets as collateral. If you have a strong credit rating, you may be considered a lower risk by lenders. This means that you don’t need the security of an asset to support your loan application.

Can I get a home improvement loan?

If you’re looking to apply for a home improvement loan, we can help.

Discover more about our loan eligibility criteria in our guide.

Applying for a home improvement loan

At Norton Finance, we’ll work with you to find a lender that offers the loan you need at an affordable rate.

What do I need to apply for a home improvement loan?

When you start your online application, we’ll contact you to get a few simple details from you. We’ll ask for your:

• Name and address
• Employment status
• Income details

We’ll also discuss what specific home improvements you’re looking to make to your property. Plus, we need to gather a little information about your house itself – as this will help us find the best option for you.

We try to make the contact process as smooth as possible. However, if you have a few details about your current financial situation with you, you can make it even easier. Any recent bank or mortgage statements and payslips can help you answer our queries quicker.

Frequently asked questions about home improvement loans

Is a home improvement loan a good idea? 

Like any big financial decision, you should carefully consider and research home improvement loans before you apply.

Work out what you can realistically afford to repay each month and see if there’s a loan that matches your repayment budget. Some lenders let you spread the repayments over as much as 30 years, but remember, this will mean you end up paying back more in the long run. Whatever the timeframe, it’s very important you’re in a financial position to comfortably meet the repayments set out by the lender.

What are home improvement loans typically used for?

There aren’t any hard and fast rules on what you can use the money for. Some homeowners use the money to cover the cost of larger installation jobs, including fitting new windows and doors or a new central heating system.

Others use a home improvement loan to refresh parts of their home that are in need of some renovation work, while loans can even be used to build extensions that can increase the value of your property. This can be useful if you’re looking to sell in the future.

Home improvement loans from Norton Finance

At Norton Finance, we can help find you a home improvement loan to suit your personal financial status and renovation needs. Because Norton is a broker, not a bank, we can search the full market to get you the right deal.

We have access to over 600 plans, which can let you borrow between £3,000 and £500,000. Loan periods range from between one to 30 years, adding some flexibility to your plans.

You’ll receive an instant decision on your loan in principle. However, you should allow between seven to 14 days for your application to be processed and the money to be transferred to your bank account.

Home improvement loan details

We have access to around 600 different loan products. During your application, we’ll carefully consider your personal circumstances and guide you through the maximum loan amounts and repayment terms on offer.

• How much can I borrow?
  You can borrow between £3,000 and £500,000 with a home improvement loan.

• How long are the repayment terms?
  Spread the costs of your repayments over a flexible time period, from one to 30 years.

• What are the interest rates?
  The interest you pay will be determined by your financial history and your current circumstances. Our homeowner rates start from 4.99%.

• Are there any loan fees?
  Norton Finance is a broker. This means we receive a commission from the lender you choose for your loan. It’s worth noting however that there may be a 12.5% broker fee of the amount you have borrowed, and this is capped at £3,995. Please note, there are no broker fees on unsecured loans.