Extramile Finance

Home improvement is a popular way to enhance property value in the UK. Due to high living costs, it is not possible for everyone to move to a new house. Also, rising property prices make it even more difficult to buy a new home.

Hence, people prefer to take home improvement loans in the UK to improve their current home. This is cheaper than taking on the burden of a new home mortgage.  

If you too believe the same, taking home improvement loans should be a suitable option for you as well.

Simple conditions, straightforward process to borrow funds  

Yes, exactly, you can receive funds as per your plans for a renovation or improvement project.  You just need to follow the several terms and conditions.

Here is a guide for you to understand the dos and don’ts of applying for the home renovation loans. Know about them and follow them to apply safely and have strong approval chances.

What is a home improvement loan?

A home improvement loan is a borrowing option specially designed to upgrade, repair, improve or renovate a home. The funds approved can be used for the purpose of home upgradation only.

No guarantor or collateral is required to apply for a home improvement loan. However, secured options are available. Home renovation projects of short to mid-term needs can be supported using this loan. The lender approves funds as per the recent repayment ability of the applicant.

The loans are typically used for –

• Rood repairs
• Home extension
• Kitchen upgradation
• Energy-efficient upgrades
• Loft conversions
• Bathroom upgrades
• Painting and interior decoration
• New flooring
• Window and door replacement
• Garden and landscaping

What are the available home improvement loan options?

Several borrowing methods are available for home renovation requirements. Take a look at the choices below and pick the best home improvement loans in the UKonline.

• Personal loans – This is popular and a known option. Just take a personal loan and use it for home improvement purposes. There is no constraint on how you are going to use the funds.
• Home improvement loans – These are specialised loan solutions available for short to medium term. To qualify for these loans, you need to provide a cost breakup explaining how the money will be spent for upgradation. Funds cannot be used for any other personal purpose.
• Mortgage top-up – It is about releasing your equity on the current home with a mortgage. Cash in on the increased value of your home by borrowing additional funds. It is also used when you maintain a good mortgage repayment history.

What are the eligibility conditions for home improvement loans?

The eligibility conditions are simple. You can fulfil them effortlessly.

• Age: Minimum age requirement is 18 years or above for large-amount loans.
• Provable employment and income – Required to know whether you are earning regularly. It proves repayment ability.   
• UK residency – To ensure you are an authentic UK resident and have an address proof.
• A valid UK bank account – To check overall financial stability using bank statements.
• Credit score – to check past payment behaviour, existing and missed repayments, and paid or settled debts.
• Property ownership – As home improvement is typically required by a homeowner, property registration papers may be required.

What is the interest rate for home improvement loans?

As per the latest rates in 2026, the current range is between 6% and 25%. Out of this, 6% to 12% is for borrowers with a good credit score. 12.5% to 25% is for people with poor credit.

This proves one more thing that you can apply for funds even with a poor credit score. But as the interest rates are high, be prepared to pay a bigger instalment as compared to standard loan instalments.

The rate you get depends completely on your credit purchase power. Therefore, before you reach any conclusion about the loan cost, calculate your affordability.

How do repayments work?

If you choose a short-term loan, the loan term is usually between 1 and 7 years. If you choose to go for a secured option, like a mortgage top-up, it can go up to 25 years. But that is the maximum; considering the project need, usually home improvement costs can be managed in fewer years than that.

Factors that affect your repayment plans –

• Payment history

If your recent payment history is clean, you get flexible repayment options. Choose to pay weekly, monthly, or fortnightly as per your preference.

But with a poor payment record, you may need to compromise a bit, with less flexibility available.

• Length of credit history

The longer the credit history, the easier your repayment plans are. It shows that you have been managing debts successfully for a long time.

But in case of a short repayment period, we have less reference available about your repayment ability.

• Number of loan applications

If you apply to multiple lenders, that proves you are credit hungry. That is never good for receiving a desirable repayment plan.

Always compare, choose one loan option and then apply. This represents you as a financially literate person.

• Credit score

Yes, that matters. If you apply for home improvement loans for bad credit, expect limited repayment plans.

That is not because a lender is stringent but because lending rules are clear. However, it is possible to get flexible deals from a direct lender.

Conclusion

It should not be difficult for you to understand that home improvement loans are a convenient option. The good thing is that the majority of renovation needs can be fulfilled using short to mid-term home improvement loans.

Even if you choose a secured borrowing option, it should be affordable. As long as you repay responsibly, all improvement loan types are fine. Now, if you are planning for the same, apply with accurate and complete details to get approved faster.

FAQ’s

Can I repay the loan early?

Yes, you can. But always ask about early repayment penalties. Extramilefinance has no such penalties. Let us know if you want to pay off faster.

Can a tenant apply for home improvement loans?

Yes, unsecured loans are available for tenants who want minor or non-structural changes in the house.

Do I need a guarantor for home improvement loans with bad credit?

Technically, you don’t need one. But if your repayment ability is weak and you have no clean recent payment records, you can include a guarantor.