Whether it is a new kitchen, a loft conversion or simply a long-overdue bathroom, home improvements tend to cost more than people expect. The way you pay for the work can add a lot to that bill, or keep it under control.
Before thinking about money, it helps to know exactly what you are paying for. So we start with budgets and quotes, then look at the main ways to fund the work, from the lowest-cost options to the more expensive ones.
Plan your budget before you borrow anything
Write down everything the project involves: materials, labour, skip hire, decorating afterwards, new furniture and any professional fees for things like plans or structural calculations. Then add a contingency. Older homes in particular often hide surprises once walls and floors are opened up, and setting aside an extra amount for the unexpected stops one problem from stalling the whole job.
Ask yourself whether everything needs doing at once. Splitting a big project into stages can mean paying for most of it from income and savings instead of borrowing.
Get proper quotes
Aim for at least three written quotes from tradespeople who have looked at the job in person. A good quote sets out what is included, what is not, the timescale and how payments will be staged.
- Ask for references and look at examples of recent work.
- Be cautious about anyone who wants most of the money upfront or only accepts cash.
- Check whether the work needs planning permission or building regulations approval. GOV.UK explains the rules for England and Wales.
Funding options, from lowest cost to highest
Savings
Paying from savings costs nothing in interest. Keep enough back for emergencies, though, so you are not left borrowing for the next unexpected bill.
Grants and schemes
Depending on where you live and your circumstances, you may be able to get help with certain work, such as adaptations for a disabled person or energy efficiency improvements. Search GOV.UK and ask your local council before you commit.
0% purchase credit cards
For smaller projects, a card with an interest-free period on purchases can spread the cost. You need to clear the balance before the promotional period ends, because the rate afterwards is usually high. Card payments over £100 and up to £30,000 may also be protected under Section 75 of the Consumer Credit Act if something goes wrong.
Personal loans
An unsecured personal loan gives you a fixed amount with fixed repayments. Rates tend to be lower for people with a good credit history, and these loans are commonly used for medium-sized jobs.
Remortgaging or a further advance
Adding to your mortgage can mean a lower interest rate, but you will be paying it back over many years, which can increase the total interest considerably. Your home is at risk if you do not keep up repayments, and switching deals early may trigger charges on your current mortgage.
Logbook loans
If you own a vehicle outright and other options are not available to you, a logbook loan is another way to raise the money. At Logbook Money you can borrow from £1,000 to £50,000, with the decision based on your vehicle's value and your affordability rather than just your credit score. You keep driving your car, and the money usually arrives within 24 working hours of applying. Find out more about how logbook loans work.
A logbook loan is an expensive form of credit, and because it is secured with a Bill of Sale, your vehicle could be at risk. To see what it might cost, check the representative example on our loan calculator.
Comparing the options for your project
Compare options on the total amount you will repay, not only the monthly payment, and match the length of the borrowing to the size of the job. Our guide to comparing the cost of borrowing walks through this in detail.
Most importantly, only borrow what you can comfortably afford. This article is general information, not financial advice. For free, impartial help with your own situation, visit MoneyHelper. Our article on questions to ask before taking a logbook loan may also be useful.
Your car may be repossessed if you do not keep up repayments on a loan secured against it.
