Home Improvement Secured Loans | UK Broker Deals
'Home Improvement Secured Loan' > Up to £1 million+ > Up to 35 years*
Article on: Secured Loans for Home Improvement * UK Loans subject to status
What's a 'Secured Loan for Home Improvement'?
A Home Improvement Secured Loan are also often commonly referred to also as a second mortgage for home improvements or homeowner improvements loan in the UK.
These 'home renovation loans' are secured loans on your property. They have second priority charge behind a main first charge mortgage.
This means you would have now 2 mortgages on your property. As such, we will also examine in this review, are all home improvement loans secured? Are home improvement loans a good idea?
The pros & cons associated with taking one out. Then, some other alternative options to maybe consider than any borrowing that is legally secured to assets that you may own.
'Secured Home Improvement Loans' are often used as a way to raise further money against the equity within your domestic property as a home renovate loan.
This maybe perhaps when it is not possible (or preferable) to increase the main mortgage via a remortgage or further advance.
With a home improvement loan broker deal, you may be able to borrow larger sum of money with a longer repayment term, than perhaps other types of unsecured finance.
Many 'home improvement loan' lenders terms in the 2020's may also offer lower interest rates than unsecured loans & for a secured loan on equity of home for larger amounts.
The reason behind this is because those secured home improvement loans uk providers potentially have a lower financial risk exposure ie; they always have recourse to seize back your home asset - should you be unable to meet all the regular loan repayments.
Note: Making regular repayments upon time to any 'home renovation loan' secured finance is crucial to maintaining your credit status in the longer term. Please contact us >
Home Improvement Secured Loans
People are usually looking for secured 'renovation home loan' for these various reasons according to a study via Country Living magazine.
Their Top 10 Reasons for maybe considering home improvement loans nationwide & in no particular order...
- Build an Extension
- New Kitchen
- Flooring & Carpets
- New Bathroom
- Cabin or Garden room
- Convert a Loft
- Create an Office
- Knock through Rooms to create Open Space
- Convert a Garage
- General Redecoration & Renovation
Their review revealed that around 1/3rd of mortgage-holders said they were considering some type of finance to pay for their home improvements.
Can I get a secured 'Home Improvement Loan'?
Your ability to get secured 'home renovation loans' will depend (apart from your actual home equity values), on you mainly being able to show a good track record firstly at paying off your main mortgage ie; are you a good finance risk?
This means you being up to date with all your regular monthly mortgage & bill repayments. Also, these bills should be paid on time.
Note: If you have some bad credit, then we may still be able to help you get a secured home improvement loan bad credit deal.
For home loans, lenders must also comply with FCA responsible lending & financing rules (that also cover your main first charge home mortgage).
This means therefore for home loan providers, they should carry out their usual same affordability checks or various loan to income limits, which are all regularly reviewed by the FCA regulator.
A few years ago this meant 'secured home improvement loans' lenders must also stress test your ability to meet any future payments.
However despite much debate, these rules for a 'secured home improvement loan' were maybe set to change from 2022.
- Using your Home for improvement loans means you will have more than one loan on a property at anytime
- Lenders they will take your existing mortgage repayments plus other property related costs into account, for their affordability calculations
- Your ability to get a secured 'home improvement loan' will depend on (amongst other things) your likelihood to be able to meet both your 1st & 2nd charge finance payments
Unsure if you can get finance, then Please contact us >
How much 'Secured Home Improvement Loan' can I get?
How much secured loan for home improvements can I get ...or in other words 'how much equity can I borrow against my home'?
Naturally, this will initially depend on the amount of equity that you have built up in your home.
This equity is the percentage % of your property owned outright by you = the value of the home less any initial mortgage finance you already owe on it.
For example, if your property is worth £475,000 and your main mortgage is £125,000 then you have £350,000 potentially for home improvement home loans.
Any further secured finance will be measured by this £350,000 equity example, you have in your property as security available for any home improvement loans nationwide or say home improvement loans halifax.
In the 2020's, with fluctuating UK property prices this Home Loan calculator with equity is made harder as some lenders become more risk averse.
This amount will also vary between those 2nd mortgage lenders. Unsure then, Please contact us about a 'renovation home loan' >
To proceed to get your best deals our whole of market home improvement loan broker will need to know...
- Purpose of your Home Improvement Loan
- Will this also Add Value to your Property
- Current Property Loan to Equity (LTV)
- Amounts Borrowed & Term
- Personal Financial details
- Credit History files
- Income & Outgoings
- Employment status | Self Employed or Employed
The best way to establish how much you can potentially borrow for home improvement home loans, is by also getting an up to date valuation of your property.
There are many free online property valuations like; Onthemarket, Zoopla, or Yopa. But these websites can often vastly vary in their approximate valuations by £100,000+ from their lowest to highest estimates.
Alternatively, your local estate agent or valuer may kindly advise for free as a rough guide, how much your property is currently worth in the market.
Also what these will not do, is raise any issues if you may have property problems eg; rising damp or subsidence. Only an onsite inspection may establish if this could be a problem.
The amount people are allowed to borrow may vary, but a loan for home improvements are usually from £3,000 upwards often to over £1 million+.
Note: All 'secured home improvement loan' deals are subject to the lenders individual criteria & valuation. These could be done via a full property valuation, online assessment or a drive by valuation.
Often the higher the equity you have in your home, then the better your chances are of being accepted & with lower interest rates.
However, around 75% of the equity in your property in the 2020's is a fair average for lending ie; as mentioned with some uk property values falling.
So in other words, logically you can borrow less with home improvement loans, than via your main home mortgage.
The reason being risk wise, your lender here now has a secondary priority risk in line to receive any funds and to make any credit claims. Should you unfortunately default, they have the added complications in the event of a repossession.
As whole market brokers we deal with many leading lenders offering competitive home improvement secured loans.
Some lenders may also allow a 3rd legal charge, should you ever require even more additional funding on top, although this is quite rare nowadays. Please contact us >
'Loan for Home Improvement' vs Remortgage?
Due to rising UK interest rates in the 2020's plus the cost of living crisis, more people are looking online into whether (rather than moving home) to consider a Loan for Home Improvement vs a Remortgage.
It is best to fully understand some of the key differences re your options & before you make such a large financial decision.
A remortgage is when you switch and move your current mortgage across to another lender or other product.
However, it will mean you having to re-negotiate or replace your main mortgage on your property with another.
Remortgaging is often not free & for some people it can come at an additional cost. When you remortgage, you could have to pay early exit redemption fees & then possibly some new remortgage setup admin charges.
Thereafter the new remortgage provider will also likely charge their own legal & survey costs, so it is important to calculate whether these savings can make it worthwhile switching.
Note: Some mainstream home mortgage providers, may only remortgage or lend to their existing customers. These deals also may not necessarily offer the cheapest interest rates against the market but perhaps you don't want to shop around?
Should you not wish to remortgage, as you believe it is not in your interests, then you could be better off using a specialist 'home renovation loan' provider, particularly if your situation is slightly more complex eg; adverse credit since taken out your original mortgage. Please contact us >
Further Loan Advance vs 'Improvements Home Loan'?
A further mortgage loan advance is similar to using your property for a secured improvements home loan ie; you will take additional borrowing secured against your property and that is in additional to your main mortgage.
You maybe able to combine a further advance to borrow additional money and then product transfer switch across to a new rate on existing borrowing in one single application, if it makes financial sense.
Some lenders may not permit a Further Loan advance within 6 months of the completion of the original home mortgage. Usually also if your existing mortgage is in arrears, then your lenders may also not accept a further advance application for loans for home improvements uk deals.
Further advances are also often not accepted on shared equity schemes. If the further advance is above say 80% LTV, often a property revaluation will be required with associated revaluation fees.
Unlike for home loans, you will be probably dealing with your existing lender. However, let's now examine some of the reasons why people would look into either options.
Note; Most main stream mortgage providers also offer 'home renovation loans'. However, our broker deals for secured improvement home loans have access to the whole of market.
So our finance brokers are familiar with the marketplace and can save you both the time, stress & cost of wasted paperwork. Please contact us >
Top 10 Reasons for Secured Loan for Home Improvement?
So given the above options, let us now look at various Top 10 reasons why a secured homeowner improvement loan could be another option (rather than just remortgaging).
- Main mortgage is on interest only & they also want you to remortgage over to repayment
- Unable to get a unsecured loan for improvement to home due to credit status, amounts required or term
- Want to borrow beyond your normal retirement age & they won't allow that
- Need improvement home loan term for over 10 years+ period to make regular payments more affordable
- Locked into a long term main mortgage at a low fixed rate & this makes no sense to cancel
- High early exit penalty fees applied by your main mortgage lender
- Main mortgage lender won't allow you to borrow anymore based on income multiples or business accounts
- Credit status has changed for the worse since you originally took main mortgage
- Need to also consolidate some existing unsecured bad credit also that a remortgage lender may not allow
- Trapped with mortgage lender & now unable to switch as you don't pass current strict affordability tests
Note: These above examples will all depend on your circumstances & so are not to be considered personal advice. Note: interest rates loan for home improvement calculator maybe higher than on your main mortgage.
Remember, if you are looking to raise finance, always consider firstly either re-approaching your existing lender or ask them about unsecured personal loans for house improvements as alternative finance options.
If this doesn't work for you, then our 'home improvement loan' finance brokers would be happy to help instead. They will work to try and secure you the best terms. They will negotiate with those providers on your behalf and get you access to some broker exclusive deals.
Don't forget this means you would be now in effect taking out 2 mortgages. Technically therefore, you are twice financially liable for your repayments against the security of your own home bricks & mortar.
You will also need to get written legal permission from your existing mortgage provider ie; give their 'legal consent to 2nd charge' before you can apply.
This consent should ideally be done as early as possible in the process, as some providers may be more willing than others to give their consent. Some lenders administration can also be a little slow to access the necessary documentation. Please contact us >
Home Improvement Personal Loan
Are home improvement loans secured? Or can you get them unsecured? The answer is you can get them both unsecured & secured.
However, before you decide if a home improvement personal loan should be secured or unsecured, consider the overall costs of your home renovation project.
* Draw up your 'Home Renovations Loan' Plan
- Consider what improvements you need to be done
- How long it all may will take
- Research building contractors quality & availability
- Use a local builder, a recommendation or trader website
* Work out the Total Costs
- Search around for a competitive priced builders quote
- Take into account what is included in their price
- Does the overall project include all labour, materials & paint
- Factor into cost any unexpected problems or changes
From this you can then work out the maximum home improvement loan you may need for your project.
All the many property transformation programmes can help give either inspiration like Grand Designs, Love it or List it or George Clarke’s Amazing Spaces. Or potential problems to avoid.
Can you Refinance Secured 'Loans for Home Improvements UK'?
Yes, it is possible to refnance your loans for home improvements uk deal to another. For example, if you have found a better finance rate or deal.
However, you may find it harder than say remortgaging your main mortgage, due to the lenders additional risk.
But provided you have made regular loan payments, your credit profile is still okay, and your income & outgoings show your finances are well managed, then it is worth reviewing.
Conversely, if your main mortgage terms are now worth remortgaging eg; a good fixed rate deal has ended, you could now review & combine both the main mortgage plus secured 'loans for home improvements'.
What happens if you want to move property?
If you want to sell your property, you will need to pay off any finance secured including home improvement loan on mortgage deals.
Sometimes, your lender may allow you transfer secured loans for home improvements uk deal across to a new property.
Can Home Improvement Loan Mortgage add value?
There are many ways you might be able to add value to your home. From simple or complex changes, to small or larger home renovations.
Discuss with your builder or project manager their thoughts. Remember that even with the finance via a 'home improvement loan on mortgage' there are no guarantees.
Those individual & expensive renovation projects, they might look great to you but perhaps not add more value to your home, than the actual cost of the building works.
Top 5 Home Improvement Loan on Mortgage Adding Value Tips
Should I get a personal loan for home improvements? Consider the financial effects of your home renovation project both externally, by upping its curb appeal & also internally for the longer term.
1] Kitchen Update
You could either replace your entire kitchen in order to add value. Alternatively, more subtle kitchen makeover changes can help too eg; Just replace kitchen doors & handles, or repaint kitchen door units. Floor tiles or carpet.
Consider a new energy efficient oven or kitchen hob. Electric or gas? Enlarge the kitchen space into a kitchen dinner.
2] New Windows & Doors
Often replacing your old windows & doors can immediately enhance your home visually & security wise. It also will have an impact on your property energy efficient ratings & help save on those all important energy bills.
Will it be similar to your neighbours' homes or the stand out house in the street? If a period property, are the changes planned allowed?
3] New Extension or Conversion
Adding an extension or loft conversion is a significant home renovation project that could help increase the overall value of your home once done.
You may also need to get planning permission too. Consider carefully the overall costs here versus added value benefits.
No good if you get loan for home improvement for say £75,000 & when after adding an extension the overall value has only increased by say £25,000.
4] New Conservatory
A well built conservatory, designed and correctly visually integrated into a property can often add far more value than it costs. Conversely, a badly built & designed one can make you question are home improvement loans worth it.
5] New Energy Efficient Heating
Improving the energy efficiency of your property can hence its value, plus save money on bills if you are looking home improvement loan on mortgage. You maybe able to get a government energy grant to help towards this re say installing solar panels.
Replacing old boilers & heating systems may add initial value to your property but overtime naturally this benefit will reduce as they get older again.
Pros & Cons of 'Secured Home Improvement Loans'
- Access the equity in your home to borrow larger amounts of money
- Raise funds on a secured basis if unable to do so unsecured
- Lower interest rates on larger sums borrowed than unsecured personal loans
- Your home is at risk if you cannot make the home loan repayments
- Take on more debt than you can afford payments on
- Your home improvement loan does not increase but reduces home loan to value
Note: Money Saving Expert Martin Lewis on Secured Loans is not really a big fan...but does appreciate that they do have their place for some people.
Martin Lewis says they should be considered only as a last resort .....only if it means overall you are hopefully paying less on all your outgoings. Alternatively, if maybe only to consolidate debts re say bad credit. Unsure then Please contact us >
Home Improvements Loans Nationwide Life Cover
Whilst looking to raise money for home improvements, it is easy to forget (especially if this a joint 'loan secured against property' deal) that you should also consider insuring any extra loans secured on your house.
You probably may have some protection in place on your main mortgage? However, people often then forget about reconsidering more protection insurance for your loans, credit cards & Home Loans.
For example, it could be any new 'home renovations loan' term is now longer or a different term. Alternatively, it maybe now set up in joint names, so maybe your existing mortgage protection insurance cover policy is now inappropriate?
Insurance for a 'Loan for Home Improvement'?
This is a valid question if say 2 people now take out any new joint 'loan for home improvement' (whether married or in a couple) and if say secured those 2 people are also named on the joint house deed.
Then your secured loans for home improvements uk lender can potentially go after either one of you, for the full repayment of that joint loan. If an unsecured loan for improvement to home, then the situation is similar.
This means if one of you sadly died, or is critically ill, then the other person could be left with the full home improvement loan repayment. If this happens to the main family breadwinner, the situation could be even worse.
The surviving partner can now be legally pursued by the Lender for all future ongoing repayments. At your worst time, the situation could get even worse
Considering if to get loan for home improvement & now wondering...Do you need Life Insurance for your secured home improvement home loans protection?
Then, please consider these reasons for Your 3 x Maybe....
Your 3 x 'Maybe'
- YOUR HOME ‘Maybe’ your biggest asset
- YOUR HOME LOAN ‘Maybe’ your biggest debt
- YOUR HOME ‘Maybe’ repossessed if you do not keep up repayments on your 'home improvement loan on mortgage'
Family Life & Loan Protection Insurance?
When looking at protection insurance for your 'best loan for home improvement', also look at the wider picture of what may happen if the worst sadly happens. People often forget about this bigger picture & so just concentrate solely on covering just their secured loans with insurance. Martin Lewis on Life Insurance says cover 10 x main salary after repayment of loans & mortgages.
Although that particular life policy has potentially protected the property you own & maybe now paid out, you may still need to have ongoing income to pay your regular bills. If not, and say the main breadwinner had died, would you now have to sadly sell up after taking out a secured loan with home as collateral?
- Your loan for house improvement payments are only just part of your regular monthly outgoings
- Other ongoing usual expenses include Gas, Electric, Food, Travel, Credit cards, Mobile, Utilities etc;
- Regular monthly bills will not stop coming in if sadly someone dies
- Likewise you would also still have to cover funeral costs and maybe repay other outgoings
- It makes sense to have both Life Insurance for any loans & Family Life Insurance if you have dependants (young or old)
Home Renovation Loan = Decreasing Term Insurance?
- This Loan Protection is designed to help insure a 'repayment style' loans
- Home renovate loans generally reduce over the term if you keep up your repayments
- A decreasing term insurance policy will also therefore reduce over its term or time period
- The plan payments however stay the same throughout the average cost life insurance policy
- Decreasing Term Insurance loan rate flexible loan for home improvement calculator
- Cover is ‘underwritten’ so Insurers ask you medical lifestyle questions before offering terms
Why is Critical Illness Insurance* more expensive?
- People often like the option of including critical illness cover with their home improvement loan protection insurance
- Critical Illness* covers a large number of risks [could be 50/100+ benefits] to help repay a secured loan against property
- Statistically you are far more likely to be making a claim on critical illness cover, if included than just lifecover
- For example, 50% of people will be diagnosed with a form of cancer in their lifetime [Cancer Research UK]
- It pays out on survival & recovery via specified benefit types eg; cancer, heart disease, stroke, multiple sclerosis etc;
- Note:Terminal illness benefit is often included 'free' as part of a Life insurance Policy
- Terminal Illness however on an insurance policy means you have sadly less than 12 months to live ie; won't survive
- Do not confuse these 2 loan protection benefits if looking to get a home improvement loan mortgage deal
Mortgage Payments Protection (MPPI) for 'Home Improvement Loan'?
- MPPI covers your improvement home loans payments against accident, sickness & hospitalisation
- Designed to cover any loan payments but not life insurance for death
- A short term cover plan & usually paid for upto 12 months. May also cover unemployment & some bills
- Some new Insurers may not offer unemployment part of policy due to the Coronavirus pandemic
- MPPI Loan Protection Payment is the same as PPI. However, the codes for this product sale have tightened
- Various risks, pre-existing issues or employment problems may well have initial exclusions after policy starts
- Not medically underwritten [unlike PHI Income Insurance] meaning cover is offered with no medical tests or GP reports
'Improvement Home Loan' & Income Protection?
- Designed to pay out Tax Free Income longer term to help loan payments & ongoing bills
- Usually PHI has an initial waiting or deferred / waiting period from 1/4/8/13/26/52 weeks
- Plans on a claim can usually run the term of the home secured loan or upto age 70
- Medical evidence is usually required for underwritten PHI insurance before any terms offered
- Insurers loan for improvement to home plan may be based on loan amount borrowed only
- Or a maximum of say upto 70% of your pre-tax gross annual earnings
Conclusion on 'Home Improvement Secured Loans'
Having read this review and decided a 'secured home improvement loan' may be your financial solution? You have considered their various pros & cons we raised.
So, whether you wish to go direct, having read this guidance & not shop around for home improvement loan mortgage deals? Or instead, prefer to speak to a professional broker about this. You pay’s your money & takes your choice.