Compare Loans to Cover Your Next Home Improvement Project

A home improvement loan lets you borrow a lump sum to fund renovations, repairs, or upgrades to your property. This can help cover the cost of any project, from a new kitchen or bathroom to an extension, loft conversion, or energy-efficiency improvements. Furthermore, most home improvement loans are unsecured, meaning you won't need to put your home up as security, and you'll repay what you borrow in fixed monthly instalments over an agreed term.

Pros and Cons of Home Improvement Loans

Renovating your home can be expensive, and paying for it in one go isn't always realistic. A home improvement loan lets you spread the cost over a fixed term, so you can get the work done now and pay it back gradually. While a home improvement loan can make larger projects more manageable and may work out cheaper than other forms of borrowing, it isn't the right option for every homeowner. Weighing up the benefits and drawbacks can help you decide whether it fits your circumstances.
Advantages Disadvantages
No Need to Use Home Equity, as most home improvement loans are unsecured, so you won't need to release equity or remortgage to fund your project. Interest Rates and fees vary by lender and credit profile. Compare representative APRs carefully before applying.
Fixed Monthly Repayments mean a set term and fixed rate to make it easier to budget for the cost of your renovation. Spreading repayments over a longer term can increase the total interest you pay overall.
Borrowing a lump sum means you can pay contractors and suppliers promptly, which may help you negotiate better terms. Stricter affordability checks mean lenders will thoroughly assess your income and outgoings, and not all applicants will be accepted or offered the advertised rate.
Well-planned improvements, such as kitchen or bathroom upgrades, extensions, or energy-efficient installations, may increase your property's value. Applying for multiple loans in a short period can temporarily affect your credit score.
Loans are typically available from a few thousand pounds up to larger sums, with terms to suit different project sizes. Spending more on improvements than they'll add in property value may not be a sound financial decision.


If you want to borrow without putting your property at direct risk, an unsecured homeowner loan may be suitable. However, rates and maximum loan sizes may be more limited compared to secured borrowing. Always consider whether repayments are affordable before applying.

Home Renovation Loans: How Much Can You Borrow?

Loan amounts typically range from around £1,000 to £25,000 or sometimes more for unsecured loans, with terms usually running from one to seven years. The amount you're offered, and the rate you're charged, will depend on factors including your credit history, income, and existing financial commitments. Larger renovation projects may even require a secured homeowner loan instead.
Check Your Eligibility

Using a Loan for Energy Efficiency Upgrades

With energy costs remaining a concern for many UK households, a growing number of homeowners are using home improvement loans to fund upgrades that cut ongoing bills rather than just improve aesthetics.

Common energy efficiency projects include:
  • Loft, wall, and floor insulation
  • Double or triple glazing
  • Solar panels and battery storage
  • Air source or ground source heat pumps
  • Boiler upgrades to a more efficient model
  • Smart thermostats and heating controls
  • Draught-proofing and door replacements

Looking to go green? Compare renewable energy deals

Stay Safe from Financial Scams

Some scammers use well-known brands to trick people into giving money or personal financial information, often by offering fake loans with attractive interest rates. The most effective way to protect yourself is to report these scams.
  • If you suspect a fraudster has contacted you, stop all communication immediately and report it to Action Fraud.
  • If someone is pretending to be CreditKnowledge, get in touch with our customer services team.
  • Be cautious if you are asked to pay an upfront fee for a loan — this is almost always a scam.

For advice, you can also call Action Fraud on 0300 123 20240.

Please note that not all applicants will qualify for a loan. We provide a free loan comparison service and act as a credit broker, not a lender. We may receive commission or other fees from lenders if you take out a product through our service. Some lenders will only consider applicants who are UK homeowners, and not all lenders offer the full range of loan amounts or terms shown. If you consolidate your existing borrowing, you may be extending the term and increasing the total amount you repay.
You can check your eligibility with no impact on your score. Only once you decide to proceed with a specific finance option will a hard credit check be conducted, which may affect your credit score. Please ensure that you can afford the repayments before taking out any form of credit. 

Warning: Late repayment can cause you serious money problems. For help, go to moneyhelper.org.uk