Home Improvement Loans
You could receive your loan in as little as 3 days!
- Borrow from £10,000 to £250,000
- Flexible terms from 3-30 years
- We consider all credit histories
- Employed, self employed, pension and benefit income
- Direct lender so no broker fees
Representative Example: A secured loan of £31,000 payable over 7 years on a fixed rate of 9.83% for the first 5 years, followed by a variable rate, currently 9.69%, would require 60 monthly payments of £553.17 followed by 24 monthly payments of £552.39. The total amount repayable would be £46,447.56, this includes interest, an arrangement fee of £1,999 and a processing fee of £499. The overall cost for comparison is 13.1% APRC representative.
What is a home improvement loan?
A home improvement loan allows you to borrow money to pay for home renovations or essential repairs, such as installing new windows/doors or adding an extension. These types of loans usually come in the form of a secured or unsecured loan.
With a homeowner loan, the money you borrow is secured against one of your assets, usually your home, or even your car. Whereas with an unsecured loan, the money you borrow doesn’t require any type of security.
This product is available as either a first or second charge mortgage, subject to eligibility and our lending criteria.
What are the different types of home improvement loans?
There are two main types of home improvement loans, unsecured and secured.
An unsecured loan allows you to borrow money without using an asset for security. Because of this, you aren’t able to borrow as much as you could with a secured loan. Usually, you can only borrow up to approximately £35,000 in comparison to £500,000 with some secured loans.
With a homeowner loan, mortgage lenders can often be more flexible about who they lend money to. This is because it requires you to use your home as security. As a result, people with adverse, poor or even bad credit histories are often able to borrow the money they need without the need to pay higher rates of interest that are sometimes associated with unsecured loans.
As well as this, the interest rate and monthly repayments tend to be lower than an unsecured loan. This is because lenders have the security of your property to fall back on.
Can I get a home improvement loan with bad credit?
If you have struggled with debt in the past, have a bad credit score or have previously been declined by mortgage/loan lenders due to your credit history, it doesn’t mean that every lender will turn you down.
Whilst some lenders may not be able to assist people with bad credit histories, at Central Trust, we consider all credit histories, including defaults, CCJ’s, missed payments and those on debt management plans or IVA’s. These are however subject to our criteria and underwriting standards.
We consider all applications on an individual basis, so whatever your credit we will try our very best to help you.
How much do home improvement loans cost?
The main costs of a home improvement loan are the fees and interest rate. However, the cost of a home improvement loan can also depend on different factors, including:
• Loan amount – this will depend on how much money you need for the renovations you intend to do
• Loan term – your monthly repayment will depend on how long you intend to borrow the money for
• Fees – such as arrangement fees (also known as lender fees) and broker fees
• Early repayment charges (ERCs) – these may apply to your loan. This means if you wish to repay the money you’ve borrowed earlier than planned, an early repayment charge may stand. The amount depends on the lender, so it’s important to bear this in mind when agreeing to your loan.
Your loan term and the interest rate you are offered will determine how much your monthly payment will be.
What should I consider before applying for a home improvement loan?
Before enquiring about a loan, you need to find out how much equity you have in your property and decide how much you are looking to borrow.
Equity is the difference between the value of your property and how much is left to repay on your mortgage. Once you know your outstanding mortgage balance and property value, you can figure out how much equity you hold in your property.
Next, plan out what home improvements need to be done and how long it will take for the work to be completed.
Once you know how much you want to borrow, you should calculate how much you can realistically afford to repay each month, taking all of your monthly expenses into consideration. This will help you decide an affordable repayment term for your circumstances. Our mortgage advisors will be able to provide you with the best deal we can that suits your needs and circumstances.
It’s also important to note that if you want to pay off your loan faster than originally agreed you may have to pay early repayment fees, therefore you should consider your repayment period carefully.
Why choose Central Trust?
Fast and Simple Process
You could access funds within days by calling our team directly or enquiring online.
Over 35 Years’ Experience
We are one of the UK's longest established specialist lenders, so you can relax knowing you're dealing with an experienced team.
Regulated by the FCA
We work to uphold the FCA's standards through transparent and responsible practices. We provide legal and financial protections to ensure a safer and fairer borrowing experience.
Your Loan,
Tailored for You.
Consolidating debt? Paying for a large expense like home improvement or a wedding? We have you covered.
Unlike many other lenders, there is no strict automation to our lending decisions. Your application is assessed by our team, not by a computer.
How it works
Organising your finances can sometimes feel stressful, but we want to make it as easy as possible for you.
In just 3 simple steps you could have the money in your bank account. All you need to do is:
Enquire
Complete our quick and easy online enquiry form. Alternatively, you can speak to an advisor instantly by calling us or starting a live chat.
Share
One of our qualified advisors will call you to discuss your enquiry and work out a monthly payment that meets your needs and circumstances.
Complete
We'll help you complete the paperwork and any other supporting documentation required. Everything can be completed electronically, or on paper if you prefer.
Ready to enquire?
Call an advisor free on:
0800 980 6273
- Friendly UK based advisors
- Enquiring won't affect your credit rating
- Fast turnaround time 7-10 days is possible
- Immediate contact from our advisors
- We are a direct lender
What are the benefits of a home improvement loan?
Home improvement loans offer homeowners the opportunity to borrow funds specifically for property enhancements. Benefits include potential property value increase and tailored loan terms for renovations.
How do home improvement loans work?
Home improvement loans function like most other loans. You borrow a specific amount, then repay it with interest over an agreed period. The unique aspect is that the funds are earmarked for property enhancements.
Can I use a home improvement loan for any renovation?
Generally, yes. Funds from a home improvement loan can be used for various renovations, from minor updates to significant overhauls. However, always check the loan's terms to ensure your project is covered.
What's the difference between a home improvement loan and a personal loan?
The primary difference lies in the loan's purpose. While home improvement loans are tailored for property enhancements, personal loans can be used for any purpose, from home improvements to debt consolidation.
How do I qualify for a home improvement loan?
Qualification criteria vary, but lenders typically consider your credit score, income, the value of your property, and the amount of equity you have.
Are interest rates on home improvement loans fixed or variable?
Both options are available. Fixed rates remain the same throughout the loan term, whereas variable rates can change based on market conditions.
How long do I have to pay back a home improvement loan?
Repayment periods vary, ranging from short-term (like 1-5 years) to longer-term options (such as 10-15 years or more). You can choose to repay a home improvement loan in between 3 and 30 years with Central Trust.
Can I have more than one home improvement loan?
Yes, it's possible to have more than one home improvement loan, but it's crucial to manage multiple debts carefully and ensure you can meet all repayments.
