Home Improvement Loans

A home improvement loan is a type of unsecured personal loan specifically designed to help you achieve your renovation goals.

Using a personal loan is the ideal way to transform your home and add value to your property, without worrying about finding a large sum of money upfront or spending years trying to save up enough to get started.

Simply borrow the money you need and pay it back over a series of fixed-rate monthly instalments.

You’ll need to fulfil the following lending criteria to be eligible for home improvement finance:

• Be aged 21 or over
• Be a permanent resident of the UK (and have been living in the UK for the past three years)
• Be in permanent paid employment, self-employed or retired with a pension
• Have an income greater than £10,000
• Have a good credit history
• Have a bank or building society account

We’ll ask for your address history from the last three years, your employment details (including annual income) and your bank details, so it’s important you have this information to hand before applying.

With a Novuna Personal Finance home improvement loan, you can borrow from £1,000 to £35,000 at low rates from 7.4% APR Representative (£7,500-£25,000).

Apply for a £10,000 loan to help fund your kitchen or bathroom renovations or a £25k loan for a bigger project. Whatever your home improvement plans, our loans can help you to make it happen.

You can repay your home improvement loan over 2 to 7 years, helping to make a big project more manageable by allowing you to spread the costs.

All Novuna Personal Finance loans, including our home improvement loans, are unsecured. This means you won’t need to put up any assets (such as your home) to ‘secure’ the loan. Our lending decision will be based purely on your creditworthiness and your ability to repay the loan. There’s no risk of your house being repossessed if you fail to make your repayments, though it will be recorded on your credit report which could impact your ability to borrow in the future.

For more information, read our guide on the difference between unsecured and secured loans.

A home improvement loan is a great way to turn your plans into a reality, but you have a big decision to make when it comes to financing your home improvements.

Look at our handy guide which covers the questions you need to ask yourself before applying for a personal loan. You’ll need to know how much you’d like to borrow and over how long, as this will impact your monthly repayments and how much interest you’ll pay back overall.

Whether your home improvements are tax deductible or not may depend on the specific type of project and the extent of the renovations. For tax advice on your home improvement plans, please contact HMRC or a qualified accountant.

You may be more likely to successfully claim for tax deduction on energy-efficient renovations, installing necessary medical equipment, repairs for a rental property you own or home office improvements if you’re self-employed. You should always keep written evidence of your costs when undertaking home improvements to help your accountant work out what might be tax deductible or not. Again, though, please always seek professional advice.

Investing in appropriate home improvements that will stand the test of time while making your home more attractive to potential buyers is ultimately what adds values.

Some of the most popular home renovation projects that add value to a property include converting a cellar, garage or loft, adding an extension or upgrading the kitchen or bathroom.

Even if you’re not planning to sell your property right away, using a home improvement loan to make well thought out and executed renovations could potentially see you receive the money back (and more) once you move onto your next property.

According to Zoopla, you could find the following home improvements could add significant value to your property…

For more top tips, check out our guide on the top home improvements that’ll add value to your property.

If you’ve just bought a new home, it’s only natural to want to make changes. At Novuna Personal Finance, our low APR unsecured loans can help you get started as soon as you move in.

However, you can explore different ways of financing your home improvements by contacting your mortgage provider. You could find increasing your existing mortgage to give you the capital you need or remortgaging to free up some funds are viable options for you. Do keep an eye on interest rates, though. A lower APR might seem like a good deal but, when you’re looking at the total interest you’ll pay back over a long repayment period you could find yourself paying a lot more in the long-run compared to taking out a short-term personal loan.

An unsecured personal loan is a great way to fund home improvements if you don’t have equity as you won’t be required to put up any valuable assets, such as your home, as collateral.

Equity is the amount of money you own on your home (basically how much your property is worth, minus the mortgage). A common way to improve equity is to increase the value of your home, and a great way to do that is by making some home improvements. You can fund these renovations using a low-rate unsecured personal loan, if eligible.