This article will seek to answer some frequently asked questions about home improvement loans, and help you make an informed decision about whether a home improvement loan is right for you, and what kind to choose.

What is a home improvement loan?

A home improvement loan is a loan which is secured on your property, allowing you to free up cash to spend on whatever improvements you might wish to make.

Why get a home improvement loan?

Whether it is a loft conversion, a new kitchen or bathroom, or even a swimming pool, a home improvement loan can be used to make those changes you have always wanted to, but never quite got around to making.

How much can I borrow?

It depends on your circumstances, and the value of your property. Generally you can borrow an amount equivalent to a significant proportion of the value of your home.

What period can I repay a home improvement loan over?

Specific terms vary, but home improvement loans tend to be repayable over a period of between 5 and 25 years.

How do I choose the right home improvement loan company?

Look at the interest rates on offer, and also the reputation of the companies offering them – there are a lot of lenders in the market nowadays, and not all of them necessarily have the best track record.

What other factors do I need to bear in mind when applying for a home improvement loan?

Apart from the interest rates, look out for insurance schemes to cover you for changed circumstances such as unemployment or illness, the possibilities for early repayment, and penalty clauses for late repayments.

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