If you’re looking to borrow money to help fund home improvements the main options are to take out a secured home improvement loan, an unsecured loan, or remortgage.
Depending on the equity that you have in your home a secured home improvement loan may give you access to a larger sum than an unsecured loan or credit card.
This could make it a good option for funding major home improvement projects. You are also often able to make repayments over a longer period with lower monthly payments, although this may mean that you end up paying more over the full term of the loan than you would on unsecured borrowing.
Because you are securing the loan on your home you risk losing it if you can’t repay the loan.
Secured loans can also be known as second charge mortgages or homeowner loans.
The decision on whether you’re best getting a secured loan or remortgaging is down to your situation. Both can offer access to similar amounts of finance, dependent on the value of your house and the equity that you have in it. It’s usually worth exploring both options to decide which is the most appropriate for you.
Some examples where a secured loan may be more suitable if:
Examples of where remortgaging may prove a better option include if:
An unsecured loan may be a good option for smaller home improvement projects. The main advantage is that the loan is not secured against your property, so you are unlikely to lose your home if you default on repayments. Because there is more risk to the lender, they are likely to lend you less, over a shorter period and at a higher interest rate than a secured loan. You’ll also need a good credit score.
Depending on your circumstances you can typically expect to be able to borrow up to £25,000 on an unsecured loan or up to £1 million on a secured loan. This will depend on factors such as your credit rating, financial situation, and for a secured loan the equity that you have in your property.
The right home improvement project will hopefully add value to your property and make it more desirable whether you’re planning to sell or create your dream home.
Home improvement loans can be used for a wide variety of reasons such as:
If you’re looking to fund your next project, consider enquiring with us at Pepper Money to see if we could help you with a secured home improvement loan. You’ll be able to speak to one of our UK-based mortgage advisers who can recommend a suitable product for your unique circumstances.
Please think carefully before securing additional debts against your property.
Start your application today or try our homeowner loan calculator to see how much you could borrow.
Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on a mortgage or any other debt secured on it.
It only takes a few minutes to get a quote online. See if a homeowner loan could be right for you.
UK Mortgage Lending Ltd (UKMLL) t/a Pepper Money is authorised and regulated by the Financial Conduct Authority (FCA) under registration number 710410 as a provider of regulated mortgages. The FCA does not regulate our Buy to Let mortgages. UKMLL is a member of the Finance and Leasing Association and follows its Lending Code as a provider of second charge regulated mortgages. Registered Office: 4 Capital Quarter, Tyndall Street, Cardiff, CF10 4BZ. Registered in England and Wales under Company Number 08698121.
Pepper Money Limited t/a Pepper Money is authorised and regulated by the Financial Conduct Authority under Firm Registration Number 811609 as a provider of regulated mortgages. The FCA does not regulate our Buy to Let mortgages. Registered Office: Harman House, 1 George Street, Uxbridge, London UB8 1QQ. Registered in England and Wales under Company Number 11279253. Calls may be monitored or recorded for training, compliance and evidential purposes.