A home improvement loan is used to invest in a property with the goal of increasing its value. The current economic climate has meant that home improvements have become more and more popular as an alternative to moving house.

How can I add value to my house?

1. Build an extension

Not only does an extension improve the quality of living for the occupants in terms of extra space, but an extended kitchen or additional bedroom can also increase the monetary value of a home.

2. Invest in a loft or basement conversion

Maximising the available space is a key approach to increasing the value of your home. A home improvement loan can be spent on transforming a loft or basement into an additional bedroom or lounge area. This is especially valuable in areas where space is at a premium.

3. Replace windows with double-glazing

A home improvement loan spent on double-glazing will not only increase the desirability of the property, but the increased energy efficiency will reduce your monthly heating bills.

4. Add a conservatory

Perhaps one of the most popular of home improvements is the addition of a conservatory or orangery. As well as creating additional living space and the opportunity to enjoy the garden whatever the weather, a conservatory is expected to add around 7% to the market value of a property.

5. Install a decking area

Investing in a stylish decking area can raise the desirability and therefore the value of a property by creating an additional entertaining space outdoors.

6. Decorate

Decorating a property keeps the interior fresh and well maintained so that when the time comes to sell, the property is desirable to potential buyers.

How to fund home improvements

Home improvement loans

A home improvement loan is an unsecured, personal loan that is used to cover home improvement costs such as decorating, home extension or maintenance. A home improvement loan is considered to be the most suitable type of borrowing for these purchases as it is usually a fixed rate; short-term borrowing that does not put your home at risk.

Second charge mortgage

A second charge mortgage for home improvements is usually taken out for larger amounts of credit, which can then be repaid over a longer repayment term. The loan is secured against your property itself, which can then be repossessed by the lender should repayments not be made.


Some decide to fund their home improvements by releasing equity from their home. This is done by switching the mortgage to a higher amount of borrowing, and then using this capital to invest back into the house. When the right home improvement loan for you has been found and accepted, you can then look for tradesmen to help you with the job. As with searching for the home improvement loan, make sure that you shop around for the best deal, from the most suitable provider. Make sure that customer reviews and recommendations become a key part of the decision-making process.