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So, you’ve worked hard to get onto the property ladder, and now you have a home that you really can consider your own (well, subject to you paying off the mortgage). You would like the look and feel of your home to reflect the fact that it’s your own… but what can you do if you have little cash left over for home improvements?

How much would you like to borrow?
£ 500

One solution could be to look at home improvement loans, such as the short term loans we help make available to many residential property owners here at CashCompare.

The term “short term loan” is typically applied to loans that last for up to 12 months. So, this type of borrowing might well be a solution for you if you don’t want to be overly burdened with another long-term loan alongside your mortgage.

However, it is important to consider your exact circumstances and needs before you commit to any particular solution for funding home improvements. So, what are some of the factors that are likely to guide your decision-making?

The amount of money you will need to borrow for your home improvement work


The amount of money you will need to borrow for your home improvement work


The term “home improvement” is a pretty broad one. It could refer to giving yourself a whole new kitchen or bathroom, converting your loft, or building a home extension, or it could simply be a reference to redecorating.

As a credit broker here at CashCompare, we work with lenders who can offer home improvement loans typically amounting to as much as £5,000. This might be an ample amount for relatively modest home improvements, but it may be far short of the requirement for others.

If, for instance, you would like to renovate your bathroom, and you have determined that this would cost you around £15,000, remortgaging might be an attractive option for you. Let’s assume in this situation that you already have a mortgage of £130,000; you might therefore simply apply for additional borrowing, so that you are left with a mortgage of £145,000.

How much you owe on your mortgage


How much you owe on your mortgage


We referenced remortgaging above, so we might as well issue this warning: it may not seem like a massive issue to add another few thousand pounds to your existing mortgage, especially if you have been successful in keeping on top of your mortgage payments so far.

But you can’t count on always being in the same financial position that you are in right now. If you find yourself in a more diminished financial situation in the future – for example, as a consequence of losing your job, or having to work less hours to care for vulnerable relatives – this may impact on your ability to continue repaying your mortgage.

And of course, the same applies if you don’t remortgage at all, and instead simply take out a separate home improvement loan. This factor may cause you to instead consider saving up money to pay for your desired home improvements, instead of committing to any kind of loan at all.

Whether there are alternative ways of funding the work


Whether there are alternative ways of funding the work


The options for homeowners who would like to carry out improvements at their property aren’t necessarily restricted to remortgaging or home improvement loans.

Other key factors here will include your reasoning for making home improvements in the first place, and the urgency of such work.

If, for example, you are looking to carry out such work in order to enhance the value of your property when you next come to sell, but you don’t intend to sell for many years or even decades into the future, you might have the luxury of saving up funds to pay for the improvements in another few months or years’ time. This would save you from having to take out a loan at all.

As always when it comes to committing to any loan or other financial product, you will need to carefully think about your own circumstances and needs, and consider the solution that would make the most sense for you.

As a broker with in-depth expertise and experience in home improvement loans here at CashCompare, we can help to find you a no obligation quote for such a loan when you complete and submit our brief and easy-to-understand online form.

"Warning: Borrowing more money can cause you serious money problems. Always consider other options before adding to existing debts." For help, go to

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