A Flexible Solution to Transform Your Home

If you’re considering renovations or upgrades to your property, a home improvement loan could be the perfect solution. Whether it’s adding an extra bedroom, modernising your kitchen, or improving your outdoor space, a secured loan can provide the funds you need to make your home improvement dreams a reality.

Why Choose a Home Improvement Loan?

Home improvements are the number one reason our customers apply for secured loans. A home improvement loan allows you to borrow a larger sum than an unsecured loan and spread the repayments over a longer term. This flexibility means you can keep monthly repayments affordable while completing the upgrades your home needs. Additionally, if your loan purpose is for home improvements, you could borrow up to 90% of your property’s value with Arrow Loans.

Benefits of Home Improvement Loans

Larger Loan Amounts: Because the loan is secured against your property, you can typically borrow more compared to an unsecured loan.
Flexible Repayment Terms: Choose a repayment period that suits your financial situation. Repayment terms can extend up to 15 years, ensuring monthly repayments remain manageable.
Potential to Increase Property Value: Investing in home improvements like extensions, loft conversions, or modernising your home can significantly increase its market value.
Lower Interest Rates: Secured loans generally come with lower interest rates compared to unsecured loans, helping you save money in the long run.

What Are Home Improvement Loans?

A home improvement loan is a type of secured loan that allows homeowners to borrow against the value of their property to finance home renovations. As a secured loan, your home is used as collateral, meaning that if you fail to make repayments, your home could be at risk. Home improvement loans are often referred to as ‘second charge mortgages’ because they are secured against your property after your primary mortgage.

These loans are regulated by the Financial Conduct Authority (FCA), ensuring that borrowers are protected and treated fairly throughout the loan process.

Home Improvement Loans vs. Unsecured Loans

One of the main differences between a home improvement loan and an unsecured loan is the amount you can borrow and the terms available. Because a home improvement loan is secured using your property as collateral, lenders are more willing to offer higher loan amounts and longer repayment terms. This makes it a suitable option for larger home renovations or upgrades.

Unsecured loans, on the other hand, do not require collateral but typically come with higher interest rates and smaller borrowing limits. While unsecured loans may seem less risky since your home isn’t on the line, they may not be sufficient for substantial home improvement projects.

Advantages of Secured Home Improvement Loans

More flexible lending criteria: Lenders are often more flexible with secured loans and may accept applications they might decline for unsecured loans.
Larger borrowing potential: Since your loan is secured against your property, you can usually borrow larger sums over a longer period.

Do You Qualify for a Home Improvement Loan?

If you’re a homeowner in England or Wales, you may be eligible to apply for a secured home improvement loan with Arrow Loans. Our basic eligibility criteria are as follows:

Aged 21 to 68
A homeowner occupier
Living in England or Wales
Ability to comfortably afford the repayments from your normal income

Not sure if you qualify? Apply for a loan with Arrow Loans today, and we’ll assess your application to see how much you could borrow for your home improvement project.

How Much Can You Borrow for Home Improvements?

At Arrow Loans, we offer homeowners the opportunity to borrow up to £250,000, depending on the value of your property and your financial circumstances. The amount you can borrow is based on your home’s value and the equity you have in it. If your loan purpose is specifically for home improvements, we may lend up to 90% of your home’s value, giving you access to significant funds for larger renovations.

What Repayment Terms Are Available?

One of the advantages of a home improvement loan is the flexibility in repayment terms. At Arrow Loans, you can choose a repayment period that suits your budget. We offer repayment terms of up to 180 months (15 years), allowing you to spread the cost of your loan over a longer period, keeping monthly repayments manageable.

Is the Interest Rate Lower with a Home Improvement Loan?

Secured loans, like home improvement loans, typically come with lower interest rates compared to unsecured loans. This is because the loan is backed by your property, reducing the risk for the lender. The interest rate you receive will depend on several factors, including the amount borrowed, the repayment term, and your creditworthiness. However, many homeowners find that home improvement loans offer a more affordable way to borrow for larger projects.

What Fees Are Involved?

At Arrow Loans, we believe in transparency. That’s why we don’t charge any upfront fees or costs before the loan is issued. Once your loan is approved and issued, an arrangement fee of up to £495 may be added to your loan amount. This fee covers administrative costs such as legal and valuation fees. The total amount you need to repay will always be clearly stated in your loan agreement.

Can I Pay Off the Loan Early?

Yes! At Arrow Loans, we provide you with the flexibility to settle your loan early, make overpayments, or even make lump sum payments. By doing so, you could reduce the overall interest paid on the loan, saving you money in the long run. Our loans are regulated by the Financial Conduct Authority, ensuring that you are treated fairly and can repay the loan on your terms.

Essential Reading for Homeowners Considering Finance

How Homeowners Can Fund Home Extensions
Financing Redecorations with a Home Equity Loan
Home Improvement Loan FAQs
Home Improvement Loan FAQs

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