Getting home improvements can be easy

It can also be a nightmare if the cash runs out halfway through e.g. no Kitchen

We are experienced in both scenarios. Talk to us or apply online

Home Improvement Loans

Promise is a nationwide specialist providing Home Improvement loans between £10,000 & £2,500,000

A Home Improvement loan does what it says on the tin – lends you money to carry out home improvements. However there are many means to this end.

A loan through the home improvement company

Provided the builder/supplier and their chosen lender are reputable this can be a good option. The money goes straight to the builder/supplier so there is no opportunity for you to raise spare cash. However, if you have a problem with the quality of the work, you could threaten to withhold repayments and the lender will put pressure on the builder/supplier to remedy the problem. The supplier will have an added incentive to put matters right as they won’t want to lose the facility with the lender.

Watch out for higher interest rates as the repayments are often quoted weekly. Make sure you compare the loan to other options.

A Secured Loan – larger loan amounts, longer pay back periods, can have additional cash

This is a very common way of raising cash for home improvements, especially if the loan amount required is significant and a remortgage is not available or appropriate. See section on secured loans.

Secured loans are available over a longer pay back period which can keep the payments lower. Larger loan amounts are also available from £15000 to £100000 being common. Secured loan lenders also offer flexible criteria, manual underwriting (not a computer) and will accept applications others often reject. It is also worthwhile considering a second charge refurbishment loan as an alternative to bridging finance if you need to raise extra cash to complete a half-finished project – some lenders are willing to lend in this case.

Unsecured loan – often good interest rates but loan amounts may be lower, repayment periods shorter and many people are declined.

If you qualify for an unsecured loan that is good news. It also means you are more likely to qualify for a good mortgage or secured loan product.

But before you commit to an unsecured loan make sure it will do what you want. Because they tend to be taken over a shorter term, the repayments are higher meaning you may not have enough disposable income to qualify for further borrowing elsewhere if you need it.

Check:

  • You are getting a good interest rate
  • The term of the loan isn’t so short it forces you to make payments you can’t afford
  • The loan amount gives you enough to do the work needed
  • Do you want to consolidate other debt at the same time – a secured loan may enable you to borrow what you need, pay off other credit but keep your repayments low by extending the repayment term. Remember, whilst extending the term will reduce your repayments, you will take longer to pay the loan back so could pay more interest in the long run.

Talk to Promise to see if a secured loan, or a short term bridging loan might help you.