Best Home Improvement Loans: Top Picks 2022

Written by Editorial Team

We have picked 3 of the best home improvement loans currently in the UK.

If you are a homeowner with a mortgage and you are looking to borrow in excess of £10,000 for home improvements then a homeowner loan may be an option for you.

Over recent years the interest rates on home improvement loans (also known as secured loans or second charge mortgages) have come down so today they are comparable with personal loan rates.

With a personal loan, this is typically unsecured finance where the loan terms will range from 1 to 7 years dependent on lender and where borrowing is normally capped at £25,000.

If you are a homeowner with an existing mortgage, and you are looking to borrow over a longer term than 7 years, or where you wish to borrow more than £25,000, and remortgaging is not an option then the homeowner route may be an option for you. With this type of loan like your mortgage the debt is secured on your home.

Selected Home improvement Loan top picks 2022:

There are no tables for this criteria


Loan Type
Selina FlexiLoan
4.10% APR
Loan Term
5 to 25 Years
£25,000 to £1,000,000
Special Features: Super fast loan process from start to finish

Loan Type
Shawbrook Homeowner Loan
4.2% APR
Loan Term
3 to 25 Years
£25,000 to £500,000
Special Features: Complete flexibility – repay the loan in full at any time

What are home improvement loans used for?

Most home improvement loan providers are fairly flexible on how the borrowing is used. Common reasons include, home improvements, paying for school fees, consolidating expensive debt e.g. credit cards and for using to put down as a deposit for a second property.

How Much Can I Borrow?

How much you can borrow and over what term of repayment will depend on factors such as:

  • Whether you are a homeowner with a mortgage
  • Your credit status
  • Employment status
  • How long you have been in the UK
  • How much you earn

Home improvement Loans: What you need to know

  • A second charge mortgage is also known as a “secured loan”, or a “homeowner” or “property-owner” loan, since it’s secured against the value of your home.
  • It sits “behind” the primary mortgage on a property, and as a result can be quick to arrange. The completion time of a homeowner loan can be as quick as 10 working days.
  • Interest rates are higher than for a first charge mortgage because the lender bears a greater risk, coming second in line for repayment should the worst happen and the property need to be sold to redeem the debt.
  • When determining whether to lend you money, as with a mortgage the lender will need to ensure that you can afford monthly repayments by looking at your income and existing credit history.

Homeowner Loan Representative Example:

The Representative APRC is 5.9%Based on an assumed loan amount of £48,000 (including broker fee of £2,505 & product fee of £495) over 240 months at an interest rate of 5% (varaible). Monthly repayment £316.78 & total repayable £76,027.20.