This article is for general information and guidance only. It is not financial advice and should not be relied on as a personal recommendation. If you are unsure whether a financial product is right for you, you should seek independent financial advice.
If you are planning home improvements, you may be considering how to fund the work. From a new kitchen to an extension, renovation costs can add up quickly.
A secured loan for home improvements is one way of borrowing money for this type of project. In this article, we are referring to a secured loan secured against your home. This type of borrowing is also known as a secured homeowner loan or second charge mortgage. This means there are important factors to consider before applying.
In this guide, we explain how a secured loan could be used for home improvements and some of the risks and costs to consider.
What is a secured loan for home improvements?
A secured loan is a form of additional borrowing that is secured against an asset you own, such as your home. In this article, the secured loan we are referring to is a loan secured against your home, also known as a second charge mortgage.
Unlike a first charge mortgage, a secured loan is not used to purchase your home. It is additional borrowing alongside your existing mortgage.
A home improvements secured loan could be used to fund work such as:
- A new kitchen or bathroom
- An extension or loft conversion
- Structural work
- New windows or doors
- Heating improvements
- General renovation and decorating
The amount you may be able to borrow and the repayment term depends on factors such as your income and outgoings, credit history, total debt and the lender’s criteria.
How does a secured loan work for home improvements?
With a secured loan, your home provides security for the borrowing. You continue to make your existing mortgage payments while also repaying the secured loan in monthly instalments with interest.
The repayment term could range from a few years to several years, depending on the lender and your circumstances.
Evolution Money offers secured home improvement loans from £5,000 to £105,000, with repayment terms from 3 to 20 years. All applications are subject to status and eligibility.
A longer repayment term may mean lower monthly repayments. However, it could also mean paying interest over a longer period. The total cost of borrowing is therefore an important factor to consider.
What might you want to consider before taking out a secured loan for home improvements?
Borrowing money for home improvements is a financial commitment. There are several factors to consider before making an application:
The total cost of borrowing
The interest rate is one part of the overall cost. You may also want to consider fees and any early repayment charges that apply.
Evolution Money’s secured loans have variable interest rates. This means the rate may change over time and could go up or down. If the interest rate goes up, your monthly repayments could increase and the total cost of borrowing could also increase. If the rate goes down, your monthly repayments and total cost of borrowing could decrease.
Looking at the APRC and total amount repayable may help you understand the overall cost of the borrowing.
Your monthly repayments
A secured loan means taking on an additional monthly repayment alongside your existing mortgage and other financial commitments.
Lenders compare your income and outgoings when assessing affordability. Your existing debts and other financial commitments may also be considered.
It is important to consider whether the repayments remain affordable if your circumstances change or interest rates increase.
The risk to your home
A secured loan is secured against your home. This means your home could be at risk if you fall behind with repayments.
Missing repayments could also result in fees, damage to your credit score and further action from the lender.
Think carefully before securing debts against your home. If you do not keep up repayments on your mortgage or any other loan secured against your home, your home could ultimately be repossessed.
Find out more about secured loans and the associated risk in our guide: How does a secured loan work?
The length of the loan
The repayment term affects both your monthly repayments and the total amount you repay.
A longer term may reduce the monthly repayment but could mean you pay interest for longer. A shorter term could mean higher monthly repayments.
The term available to you depends on the lender’s criteria and your circumstances.
Are there other ways to fund home improvements?
Yes – a secured loan is just one way to fund home improvements. Depending on your circumstances, there may be other ways to pay for the work. Each comes with different costs, risks and eligibility criteria.
Using savings
If possible, some homeowners choose to use savings to pay for home improvements.
Using savings means you are not taking on additional borrowing or paying interest. However, it may reduce the money you have available for unexpected costs or emergencies.
You may want to consider whether using some or all of your savings fits with your wider financial circumstances.
Remortgaging
Remortgaging involves replacing your existing mortgage with a new one. Some homeowners may choose to borrow more as part of a remortgage to fund home improvements.
This could change your monthly mortgage payments and the total amount you repay over the life of your mortgage. There may also be fees to consider, particularly if you leave your current mortgage deal early.
Whether you are able to borrow more will depend on your circumstances and your lender’s criteria.
Credit cards
Some people use a credit card to pay for smaller home improvement projects.
Credit cards may offer promotional interest rates for a limited period. Once that period ends, a different interest rate may apply. Missing payments could also affect your credit score and lead to additional charges.
Before using a credit card, it may be useful to understand the interest rate, any fees that apply and how long it could take to repay the balance.
Equity release
If you’re over 55, equity release might be an option. This lets you access some of your home’s value without selling it. With this, instead of making monthly repayments, the loan and interest get paid back when you die or sell the property.
While this may free up cash, it reduces the value of your estate and could affect your entitlement to benefits. Speak to a qualified equity release adviser and make sure you understand the risks.
Secured loans for home improvements from Evolution Money
At Evolution Money, we provide secured home improvement loans from £5,000 to £105,000, with repayment terms from 3 to 20 years. Our customers rate us ‘Exceptional’ on Feefo, and we received the 2026 Feefo Platinum Service Award.
You can check your eligibility online without affecting your credit score.
All loans are subject to status and eligibility. Available to UK homeowners aged 21 – 70. Terms and conditions apply. Not all applicants will be accepted.
Don’t rush into securing a loan against your home. Falling behind on mortgage or secured loan repayments may put your home at risk of repossession.
Representative 21.82% APRC (Variable)
For a typical loan of £18,900 over 180 months with a variable interest rate of 18.72% per annum, your monthly repayments would be £335.99 for 179 months and then a final payment of £335.79. This includes a Product Fee of £1890.00 (10% of the loan amount) and a Lending Fee* of £763.00, bringing the total repayable amount to £60,478.00. Annual Interest Rates range between 8.6% to 27.87% (variable). Maximum 50.00% APRC. *Lending Fee varies by country: England & Wales £763, Scotland £1,051, Northern Ireland: £1,736.
Think carefully before securing debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage or any other loan secured against it. If you are thinking of consolidating existing borrowing, you should be aware that you may be extending the terms of the debt and increasing the total amount you repay.
