Tips on financing your home improvement project
Planning a home renovation project and not sure your budget will stretch? We’ve got some simple tips to help make your project a reality.
Making a change to your home can be a great way to get the most from your living space. It could also add to the value of your house, helping you get a better price when you come to sell it.
It’s likely that bigger the project is, the more you’ll need to set aside. If you don’t have savings that will cover the costs, there are plenty of other ways to finance your home improvement project. We’ve shown some examples below.
You could apply for a grant
Depending on your circumstances and the project you have in mind, you may be eligible for a grant.
If your project involves replacing your boiler, check to see if you’re eligible for a boiler grant. These are funded by UK utility companies and are available to low-income households with low-efficiency boilers that need replacing.
You may be eligible for a home improvement grant if you are disabled or elderly, and need to make changes to your house to continue living in it comfortably. You can apply to your local Home Improvements Agency or apply for a Disabled Facilities Grant at the Foundations UK website.
You could take out a personal loan for home improvement
A home improvement loan is a lump sum borrowed to carry out a building project within your home. It’s a personal loan, which means it isn’t secured against your home or any other assets. You’ll pay it back in fixed monthly instalments, with interest, over a period of a few years.
Funding your home improvement project like this could be a good idea if you’re working on a big project, new kitchen or an extension.
As with any loan, it’s important to make sure you can commit to the repayments before you apply. You can use our loan calculator to give you an idea of what your monthly repayments could be.
An alternative to a home improvement loan is to remortgage your property. This is where you switch to a new, larger mortgage, and in the process free up a pot of cash, which you can then use to renovate your home.
Remortgaging may be a good option if you’re unhappy with your current mortgage deal and/or if you have equity in your home (i.e. you owe less on the mortgage than the house is worth).
However, taking out a larger mortgage can mean higher repayments over a longer period of time. If you’re not sure whether remortgaging is your best option, it’s a good idea to get some professional financial advice before making the commitment.
The content on this page aims to offer an informative introduction to the subject matter but does not constitute expert financial advice specific to your own situation. All facts and figures were correct at time of publication and were compiled using a range of sources.