A Borrower’s Guide to Home Improvement Loans

Guide to Home Improvement Loans

“Improve rather than move” – a recent survey found that more than half of the UK homeowners would rather take out a home improvement loan or release equity from their properties instead of getting into all the hassle of moving home.

With more home improvement loans available now than ever before, how do you go about choosing the best one for you? LoanTube looks at the home improvement loans market in the UK.

Home Improvement Loans UK – Why do People Take Them Out?

We spend more time at home than we spend anywhere else. Home is not only familiar and safe – we want it to be comfortable and enjoyable, not only for ourselves but for our families too.

In another survey, conducted by a Swedish bank based in the UK, three-quarters of us who spend money on our houses using home improvement loans feel more “content” and “happy”. Nearly the same number feel more confident in inviting friends around for dinner and a third of us told researchers that we actually spend more time in our homes after investing in home improvements.

When taking out loans for home improvement, UK households’ top ten most popular projects, according to online estate agent Tepilo, are:

  • A new bathroom
  • A new kitchen
  • A new boiler or central heating system
  • Improvement of gardens and outdoor spaces in general
  • Building an extension
  • Making our homes more open-plan
  • Solar panel installation
  • Loft space conversion
  • Adding an additional bedroom

It turns out that just under half of us have carried out major home improvement projects in the last five years at the same time as the number of houses being bought and sold was at historic lows.

Home Improvement Loans UK – Unsecured or Secured?

There are two types of home improvement loans in the UK marketplace – you can choose from either secured home improvement loans or unsecured home improvement loans.

With secured home improvement loans, the loan company takes a “charge” over your property. They’ll normally lend up to the value of the equity of your home – your equity is the value of your house minus the size of the mortgage left on it.

With secured home improvement loans, you can generally borrow money over up to 25 years. You’ll probably get quite a competitive interest rate on any secured home improvement loans you’re offered. However, if you fail to keep up repayments on secured home improvement loans, worst-case scenario is that you may be forced to sell your home to repay whatever is left on it.

LoanTube doesn’t offer secured home improvement loans – we only offer unsecured home improvement loans. Why? We think that asking you to put your home at risk because you want to improve it is not fair and it puts too much pressure on our customers.

Government Home Improvement Loans UK – Are They Available?

Government home improvement loans are available but what you get varies depending on whether you live in England, Scotland, Wales, or Northern Ireland. The devolved assemblies and local councils have a number of different government home improvement loans and grants. To find out more, you might want to start your search at your local authority website.

Home Improvement Loans at LoanTube

For home improvement loans, Money Saving expert Martyn Lewis has the same advice for borrowers that he shares on all other types of finance product – shop around.

Getting the best home improvement loans for you and your home improvement project is something that we at LoanTube have been specifically set up to do. But how do we do it and how does that benefit you?

Most homeowners searching for information on home improvement loans do one of three things:

  1. They use a website to compare home improvement loans. –
  2. They use an online home improvement loan calculator to work out what the potential cost might be.
  3. They contact the bank they have their current account with – for example, Santander customers would speak to their bank manager about Santander home improvement loans.

These are all great options – but LoanTube offers something better for people looking for home improvement loans.

LoanTube has a panel of lenders. Each lender likes to lend to certain types of people depending on their risk appetite. And as a broker, we know what each loan company is looking for in a potential customer, we know the exact companies which would want to see your application and which ones wouldn’t. How does it all happen in real time? When you fill up the loan application on LoanTube, it enters all your details, into our clever computer system which then process it with pre-defined eligibility criteria by all our partner lenders. It then crunches the numbers and it matches you with the right lender(s). And this all happens in real-time. 

So why should you choose LoanTube as your partner rather than anyone else?

When you get a quote for your home improvements from a kitchen or a bathroom installer or any other fix and repair, you never settle for the first quote. You get a range of quotes to choose from.

We’re completely unbiased and we won’t favour one lender over another. What’s important to us is delivering the right deal for you.

LoanTube Home Improvement Loans – Top Tips

Before you apply, here are LoanTube’s top tips for money management if you want to take out an unsecured home improvement loan:

  1. Make sure you get the keenest quote from a supplier you trust to do the work.
  2. If you have any savings you feel comfortable using on the project, use those to bring down the amount you have to borrow using a home improvement loan.
  3. By taking out a loan over a longer period of time, the amount you pay each month will be smaller. However, over the course of the loan, you will end up paying more.
  4. Only take out a loan where you can comfortably afford to make the monthly repayments.

LoanTube Home Improvement Loans – Start your Application

To start your application for a home improvement loan, please click here. Remember that our service comes at no charge to you and that you don’t have to accept any of the quotes we provide you with if you do not like them.

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