Ways to pay for home improvements
Common options are an unsecured personal loan, borrowing more from your mortgage lender (a further advance), remortgaging, or a secured loan. This calculator works for any loan repaid in equal monthly instalments.
Interest is worked out monthly at one twelfth of the annual rate. Lenders may calculate interest differently (some charge it daily), so your actual payments can differ slightly.
Worked example
Borrowing £15,000 for a new kitchen at 8% over 5 years costs £304.15 a month, £18,248.75 in total.
Things to consider
Adding the cost to your mortgage may mean a lower rate, but you'll pay interest over many more years, which can cost more in total. Compare the total amount repayable.
Loans secured on your home put it at risk if you can't keep up the repayments. Get quotes for the work before deciding how much to borrow.
Inputs for the home improvement loan calculator
Amount to borrow
How much you need for the work, ideally based on quotes.
Interest rate (per year)
The annual interest rate on your loan. The rate shown is only an example, so enter the rate from your quote. Interest is worked out monthly at one twelfth of the annual rate. Lenders may calculate interest differently (some charge it daily), so your actual payments can differ slightly.
Term
How many years you'll repay the loan over.
CALCULATOR QUESTIONS
Home improvement loan calculator questions
Is a personal loan or a further advance better for home improvements?
A further advance may have a lower rate but is repaid over your mortgage term, so it can cost more overall. Compare total costs.
How much would a £15,000 home improvement loan cost?
At 8% over 5 years, £304.15 a month and £3,248.75 in interest. Enter your own figures above.
Are home improvement loans secured?
Many are unsecured personal loans. Larger amounts are sometimes secured on your home, which puts it at risk if you miss payments.
Does this include fees?
No. Add any arrangement fees from your quote when comparing options.