How Much Can I Borrow To Fund My Home Improvements?
Want to find out how much you could borrow with a home improvement loan?
Just use our calculator below. It’s quick and easy.
You only need to enter a few basic details about your finances. And you’ll get an instant estimate that’s tailored to your situation.
It’s super quick – it takes less than 30 seconds!
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Remember, this is just your first step. For a more detailed and accurate idea of what you can borrow, it’s a good idea to talk to a good mortgage advisor.
Just send us an enquiry, and we’ll arrange a free, no-obligation chat with a mortgage broker who can give you a complete overview of your loan options.
How To Use Our Home Improvement Loan Calculator?
Our Home Improvement Loan Calculator is really easy to use. You don’t need to enter any personal information to start.
We value your privacy and comply with all regulations. Rest assured, we won’t access or use your details unless you give us clear permission to do so.
Feel free to play around with different amounts and terms to see what works best for you. If the calculator shows you can’t get a loan based on your details, it will tell you why, so you can make changes and try other options.
Things to Remember:
Be Accurate
The better your information, the more accurate your estimate will be. Make sure you put in the right details.
Every Lender is Different
Our calculator gives a general idea, but each lender has their own rules. For more specific advice, talking to an advisor is helpful.
It’s Just a Guide
The figures you get from the calculator are estimates, not guaranteed loan offers. For exact numbers and advice, speaking to a qualified mortgage advisor who knows all about home improvement loans is the best way to go.
Digging Deeper: Home Improvement Loans Explained
What is a Home Improvement Loan?
A home improvement loan is money that you borrow to pay for changes or upgrades to your home. There are two main types of these loans.
The first type is a personal loan, which is usually best for smaller projects. It’s not tied to your property, which means it’s generally quicker and easier to get, but the amount you can borrow is often less.
The second type is a secured homeowner loan. This one is for bigger projects, like adding an extension to your house.
Since these loans are secured against your home, you can usually borrow more money. But remember, because your home is used as security, there’s a risk involved if you can’t keep up with the payments.
Why Opt for a Home Improvement Loan?
There are several reasons why you should consider a home improvement loan. But, here are some reasons you might want to go down this route:
- Your house needs essential repairs, like fixing the roof or updating the central heating.
- You’re looking for more space and thinking about an extension, a conservatory, or converting the loft.
- You want a home makeover, revamp an outdated kitchen or bathroom, or replace worn-out appliances.
- You want to increase your home’s value before selling it. By improving your home, you could sell it for more than you would have without the upgrades.
What Factors Determine My Borrowing Amount?
The amount you can borrow is influenced by several factors. Here’s a summary of what you must consider to get a clear idea of how much you might need to borrow:
- The scope of your project. Are you planning something big like an extension, or something smaller like redecorating a room? The bigger the project, the more you might need to borrow.
- The materials you need for your project. High-quality materials or special features can add to the cost.
- Your home’s equity. This is the part of your home you own outright, and it can influence how much you can borrow. Generally, the more equity you have, the larger the loan you might get.
- Your credit rating. A good credit score can help you get a better interest rate on your loan. Even if your credit isn’t perfect, you might still get a loan, but the interest rate could be higher.
What Are the Types of Home Improvement Loans and Their Limits?
As discussed, there are two types of home improvement loans. You’ll find unsecured personal loans and secured homeowner loans.
Unsecured personal loans are like straightforward loans. You borrow a set amount of money and pay it back over time. The amount you can borrow usually ranges from about £1,000 to £35,000.
Secured homeowner loans are different. They’re tied to your property, meaning your home acts as security for the loan. This type usually lets you borrow more money – sometimes from £5,000 up to a much larger amount, like £5 million.
The exact amount depends on how much your home is worth and how much of your mortgage you’ve already paid off.
Why is Equity Important in Secured Home Improvement Loans?
Equity is a key part of getting a secured homeowner loan. It’s the part of your home that you fully own, without any mortgage.
For example, if your home is worth £200,000 and you have £150,000 left to pay on your mortgage, your equity is £50,000.
Having equity in your home is important because it affects how much you can borrow with a secured loan. Generally, the more equity you have, the more money you might be able to get.
But remember, using your home as security means there’s a risk. If you can’t pay back the loan, there’s a chance you could lose your home. So, it’s crucial to think carefully about how much you borrow and your ability to pay it back.
How To Qualify for a Home Improvement Loan
To qualify for a home improvement loan, you need to follow a few key steps. Here’s a general guide so you would know what to expect:
- Check how much equity you have in your home. Equity is the part of your house that you own outright, without a mortgage. You can figure this out by subtracting what you still owe on your mortgage from your home’s total value.
- Review your credit history. Lenders look at this to see how you’ve managed loans and credit in the past. A good credit history can make it easier to get a loan, especially at a better interest rate.
- Gather your financial information. Lenders will want to see things like your payslips or tax returns to check that you can afford the loan repayments.
- Get estimates from contractors for the work you want to do. This helps you know how much to borrow and proves to lenders that you have a solid home improvement plan.
The Bottom Line
Choosing the right type of home improvement loan is a big decision. It can make a huge difference in how smoothly your home renovation goes.
You need to think about whether an unsecured personal loan or a secured homeowner loan is better for your situation. Each has its pros and cons, and the right choice depends on what you need and your financial circumstances.
A home improvement loan calculator is a great tool to start with. It helps you see what you might be able to borrow and what the repayments could look like. This gives you a clear idea of what’s possible before you make any big decisions.
Using a broker can also be helpful. They know about different loans and can find the best one for you. A broker can save you time and stress, making the whole process a lot easier.
If you’re looking for a quick and stress-free way to find the right loan for your home improvements, we’re here to help.
Get in touch with us, and we’ll connect you with an FCA-qualified broker who specialises in home improvement loans.
