Home improvement, renovation and construction loans

Unlock the value in your home

It can make good sense to use the equity you already have in your home to fund home improvements, whether you're making critical repairs, cosmetic changes (you've never really liked that kitchen), or even adding an extension. In fact, it can be a way to increase the value of your home before selling it – without having to save money before starting improvements. Our approach to lending considers your individual circumstances, not just your credit profile. So even if you’ve had previous problems, you could still get a home improvement loan with us.

We’ll consider home improvement loans for:

• ex-council houses, flats and maisonettes
• high-rise properties (yes, even ones above 6 floors)
• properties with poor valuations (when the property is in a less than perfect condition)
• non-standard constructions (When the property you want is a little out of the ordinary)
• normal brick-built houses, flats and maisonettes
• properties where more than 40% will be owner occupied

Key features

• Loans from £10,000 to £1,000,000
• Up to 77.5% LTV (loan to value)
• CCJs and Defaults accepted (up to 70% LTV)
• Variable rates from 5.34%
• 2-year fixed rates from 7.15%
• 5-year fixed rates available from 7.4%
• No Early Repayment Charges
• Interest-only repayment options available

With added value

You’ll find the same rates for our home improvement loans as you will for our other secured loans. And to help make things more affordable, we offer a 2 and 5-year fixed-rate option. Also, we don't hit you with early repayment charges if you want to pay off your mortgage early. And that’s even on fixed-rate mortgages.

Overall cost for comparison

For example: A mortgage of £70,000 payable over 10 years on our variable rate for the loan term of 10 years at our current rate of 6.65% (variable) would require 120 monthly payments of £860.20 plus a redemption administration fee of £150.00.

The total amount payable would be £103,224.34 made up of the loan amount plus interest on the loan (£26,022.64), processing fee (£3,250.00) and arrangement fee (£1,750.00) plus interest on these fees (£1,951.70) and the redemption administration fee (£150.00).

The overall cost for comparison is 8.6% APRC representative. 

The actual rate available will depend upon your circumstances. Ask us for a personalised illustration.

6 steps to getting a home improvement loan

When you apply for a home improvement loan with us, one of our qualified advisers will guide you through each step of the process:

1. We’ll make sure we understand your circumstances fully before recommending a suitable loan. If you’re happy, you’ll receive a ‘mortgage illustration’ providing all the relevant details about the product you’re applying for.
2. Our advisers will take you through the full application process. We’ll tell you exactly what you need to do, and when, including sending us supporting documentation. For example, proof of income in the form of wage slips or your accounts.
3. When we have everything we need, we’ll assess your application and supporting information.
4. If we’re happy with everything, we’ll make you a loan offer, which means we’ve accepted your loan application.
5. Our advisers will tell you what’s happening at each stage and, importantly, you’ll have their contact details if you want to get in touch.
6. We’ll release the funds to you and you're good to go.

Our general lending criteria

• Maximum LTV (loan to value) – 77.5%
• Maximum loan – £1,000,000
• Variable rate terms – 3 to 30 years
• Fixed rate terms – 2 or 5 years then variable rates
• Maximum age – 80 years at end of term
• Credit profile – CCJs and Defaults accepted (even in the last 12 months)
• Income types – employed, self-employed, temporary/zero-hour contracts, DWP benefits, pension
• We accept loans against non-standard property types