Secured home improvement loans

Think carefully before securing other debts against your property. Your property may be repossessed if you do not keep up repayments on a mortgage or any other debt secured on it.

Key takeaways

  • Secured home improvement loans act as a second mortgage that can be used to borrow money for the purposes of renovating or improving one's home.

  • Popular renovations using a secured loan in the UK are kitchen remodelling, bathroom remodelling, room additions, landscaping, energy-efficiency upgrades, and roof replacements.

What are secured home improvement loans and how do they work in the UK?

Secured home improvement loans are a type of loan that can be used to borrow money for the purposes of renovating or improving the appearance and condition of your home.

A secured loan, as a rule, requires borrowing against an asset as security, such as your home, from which lenders can then seize if repayments cease. 

This does mean secured loans come with a high level of risk for the borrower. However, the result of using collateral also gives you access to more competitive rates than unsecured options – which are generally lower risk.

As a secured loan acts as a second mortgage, not a remortgage, your repayment terms will also differ from your primary mortgage. Your mortgage adviser will assist you in identifying the most suitable interest rate and term for your individual circumstances.

What home improvements can I use a secured loan for?

Secured home improvement loans are typically used to finance:

  • Kitchen remodelling: Upgrading your kitchen can add value to your home and make it more functional for your family. 

  • Bathroom remodelling: A new bathroom can improve the look and feel of your home, as well as increase its value. 

  • Room additions: If you need more space in your home, a secured loan can be used to pay for the construction of a new room. This could be an extra bedroom, a home office, or a playroom for the kids.

  • Landscaping: Beautifying your garden with plants, trees, and hardscaping can improve the appearance of your home and increase its value. 

  • Energy-efficient upgrades: Installing energy-efficient features, such as a new heating and cooling system, can reduce your energy bills, make your home more environmentally friendly, and improve your EPC rating. 

  • Roof replacement: A new roof is a major home improvement project that can protect your home and improve its appearance. 

These are just a few examples of the types of home improvement projects that you can finance with a secured loan. Before you take out a loan, it's important to carefully consider your financial situation and make sure that you can comfortably make the loan payments.

Does a secured home improvement loan hurt your credit?

The answer is maybe. A home improvement loan is a secured loan, which means it's backed by collateral - in this case, your home. That can be good for your credit score because it lowers the risk for the lender. However, if you miss payments or default on the loan, it will damage your credit score.

5 top tips for securing the most suitable home improvement loan for you

Getting your perfect home improvement loan doesn’t have to be tricky and navigating the process can be made easier with just a few simple steps. 

  1. Shop around to compare different lenders and their offers, as interest rates on secured home improvement loans can vary greatly. 

  2. Before signing on any dotted lines, check that you understand the details of any loan agreement and make sure you are aware of all possible fees or costs associated with it.

  3. Consider any options related to fixed monthly payments or early repayment so you can better plan your budget and decide what works best for you. 

  4. Providing security over more than one asset may increase your chances of getting a lower rate. 

  5. Consult with an impartial mortgage expert to get good advice about all your options before making a final choice.

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Important info & marketing claims

You may have to pay an early repayment charge to your existing lender if you remortgage. Your savings will depend on personal circumstances.

Your home may be repossessed if you do not keep up repayments on your mortgage.

*The savings figure of £406 is based on remortgage customers in February 2024. Read more on our marketing claims page.

We can't always guarantee we will be able to help you with your mortgage application depending on your credit history and circumstances.

Average mortgage decision and approval times are based on's historic data for lenders we submit applications to.

Tracker rates are identified after comparing over 12,000 mortgage products from over 100 mortgage lenders.

As of January 2023, has access to over 100 lenders. This number is subject to change.

For buy-to-let landlords, there's no guarantee that it will be possible to arrange continuous letting of a property, nor that rental income will be sufficient to meet the cost of the mortgage.