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Best Home Improvement Loans UK 2026

Finance renovations without releasing equity

UK personal loans for home improvement — extensions, loft conversions, kitchens, bathrooms, new boilers, solar panels — without remortgaging or using a secured loan. Funds arrive faster than equity release and carry no risk to your property.

Avg APR

8% – 20%

Loan Amount

£5,000 – £25,000

Term

24 – 84 months

Top UK Lenders for Home Improvement Loans

Top Pick
1

Barclays

Large renovation budgets

Representative APR

6.5% APR representative

Loan Range

£1,000 – £50,000

Min Credit

Good

Funding

Same day

2

Lloyds Bank

Existing account holders

Representative APR

7.9% APR representative

Loan Range

£1,000 – £50,000

Min Credit

Good

Funding

Same day

3

HSBC

Low representative APR

Representative APR

7.5% APR representative

Loan Range

£1,000 – £25,000

Min Credit

Good

Funding

1–3 days

4

NatWest

Current account customers

Representative APR

7.9% APR representative

Loan Range

£1,000 – £50,000

Min Credit

Good

Funding

Same day (existing)

5

Zopa

Fintech, fair credit

Representative APR

9.9% APR representative

Loan Range

£1,000 – £25,000

Min Credit

Fair

Funding

1–2 days

Representative APR shown. 51% of successful applicants receive this rate or better. Your rate may differ based on your credit profile.

Pros

  • No remortgage or equity release needed
  • Faster than secured home loans
  • Fixed monthly repayment
  • Can increase EPC rating — reducing energy bills

Cons

  • Higher rate than remortgage
  • Not tax-advantaged like ISA savings
  • Monthly commitment for 2–7 years
  • Projects often exceed budget — borrow conservatively

Key Facts

A loft conversion adds an average of £50,000 to UK property values.
New boiler loans are among the most common home improvement loan purposes in the UK.
Solar panel installation costs £6,000–£8,000 — payback period averages 7–10 years.
The Green Homes Grant ended in 2021 — personal loans are now the primary bridge finance.

Frequently Asked Questions

Is a personal loan or remortgage better for home improvement in the UK?

For amounts under £25,000, a personal loan is often faster and avoids remortgage fees. For larger sums, remortgaging at lower rates makes more sense.

Can I borrow for solar panels on a personal loan?

Yes — most UK lenders allow home improvement loans for solar, heat pumps, and energy-efficiency upgrades.

Will my home improvement loan affect my mortgage application?

Yes — the monthly repayment is included in lenders' affordability calculations. Consider timing carefully.

Other UK Personal Loan Types