How To Offer Finance For Home Extensions

Customer finance that supports your quoting and cash flow

Customer finance lets homeowners spread the cost of an extension, while you keep your project pipeline moving with fewer delays caused by budgeting. In today’s UK market, borrowers have more choice and smoother digital applications than they did even a few years ago, which makes financing feel less daunting at the point of sale. For an extension business, that matters because an extension is rarely an impulse purchase: it is a considered upgrade where monthly affordability often decides whether a job happens now, later, or not at all. Offer finance well and you are not “discounting” your work, you are simply aligning payment structure with how many customers prefer to buy.

Standout point: Finance is not a gimmick, it is a practical way to match a large, value-adding project to a manageable monthly budget.

Why homeowners lean on finance for extensions

Extensions sit in an interesting middle ground: they are big enough to strain cash flow, yet often tied to lifestyle goals and property value. Many homeowners prefer to keep savings intact for contingencies, especially when build programmes can shift and costs can change. Others want to avoid touching a favourable mortgage deal, which is one reason second charge borrowing for improvements has been growing, allowing customers to raise funds against equity while keeping their main mortgage terms. At the smaller end, personal loans and credit cards remain common, with personal loan APRs often around 7-10% and purchase cards offering 0% introductory periods that can be useful if balances are cleared before higher revert rates apply.

How finance helps you sell more, not harder

Offering finance can lift conversion because it reframes the decision from “Can we afford £35,000?” to “Does £X per month work for us?”. That shift reduces sticker shock and helps customers commit earlier, which can protect your schedule and reduce time spent chasing uncertain leads. In home improvement, interest-free or deferred-payment options can be particularly persuasive for mid-sized projects, with some products allowing customers to delay repayments for up to 12 months after completion, then spread the balance over multiple years. Add low-deposit structures and flexible terms into the mix and the perceived barrier drops again. The result is often more signed contracts, fewer quote revisions, and a better chance of upgrading scope because customers can see the affordability of higher-spec choices.

Typical transaction values (illustrative)

What you can fund: real-world examples

1. Single-storey rear extensions and open-plan kitchen-diners

2. Two-storey side or rear extensions

3. Loft conversions integrated with extension works

4. Glazed extensions, lantern roofs, bifold and sliding door packages

5. Groundworks, drainage and structural steel

6. Electrical rewires, heating upgrades and underfloor heating

7. Insulation improvements and energy-efficiency elements

8. Interior fit-out: kitchens, bathrooms and flooring as part of the project

Compliance, clearly and calmly

If you introduce finance, the key is to keep marketing fair, clear and not misleading, and to ensure customers understand APR, total amount payable, term length and any deferred-payment conditions. Promotions such as “0%” or “Buy Now Pay Later” must be explained with equal prominence to any fees, eligibility criteria and what happens after the promotional period. Many firms choose to work with an FCA-authorised broker so the regulated activity is handled properly and the customer experience stays compliant.

The broker or introducer approach in practice

Most extension businesses do not want to become lenders, and they do not need to. An introducer model allows you to offer finance by partnering with a broker who sources suitable products from a panel of lenders. You introduce the customer to finance as an option, then the broker manages application, underwriting and documentation. This can widen choice because customers may suit different routes depending on project size: unsecured agreements for smaller works, longer-term solutions for larger builds, and in some cases secured options where equity makes the overall cost of borrowing more competitive. Importantly, a broker-led approach also supports consistent disclosures and a more robust process when affordability and credit checks are involved.

Trust signal to use in your sales materials: customers often feel more comfortable applying when a regulated intermediary is involved.

A customer journey you can map onto your sales process

1. Raise finance early: mention finance options when you share ballpark pricing, not after the customer has stalled.

2. Capture project basics: approximate total, deposit expectation, and preferred monthly budget.

3. Present simple choices: for example, “pay now”, “spread the cost”, and “defer then pay”, where available.

4. Confirm key terms: term length, representative APR, any deferral period, and what the customer pays in real terms.

5. Introduce the broker: hand the customer to the broker’s application link or assisted application route.

6. Application and decision: many journeys are digital-first, often starting with a soft search before a full application.

7. Approval and agreement: the broker supports documentation and customer understanding.

8. Schedule and deliver: align project start dates with any deposit and funding timings.

9. Aftercare: ensure customers know who to contact for account queries, alongside your own service support.

Next steps you can implement this week

• Add a “From £X per month” example to quotes for two common project sizes.

• Train your sales team to explain APR and total repayable in plain English.

• Build a short finance FAQ into your website extension pages for organic search visibility.

Getting started with Kandoo

Kandoo is a UK-based retail finance broker that helps home improvement businesses offer finance in a way that is straightforward for customers and practical for installers. The starting point is typically a short discovery about your average order value, typical customer profile and the types of projects you sell most often. From there, you can shape a finance menu that fits real buying behaviour: smaller works where customers may want quick, unsecured options, and larger extensions where customers may be weighing equity-backed routes such as remortgaging, a further advance, or a second charge approach to keep an existing mortgage deal. Once set up, you can integrate finance into quotes, your website and your sales conversations so affordability becomes part of the decision, not a barrier.

FAQs

What is the best finance option for a home extension?

It depends on project size and the customer’s circumstances. Smaller works are often funded with personal loans or credit cards, while larger projects can suit equity-backed borrowing such as a remortgage, further advance or second charge.

Do customers really want finance for extensions?

Many do. UK consumer finance options have broadened and digital application journeys have improved, so customers are more willing to use structured borrowing to manage cash flow for big home projects.

Can I advertise 0% APR or Buy Now Pay Later?

Only if the product is available to your customers and you can present the key conditions clearly. You must explain the term, eligibility, what happens after any promotional period, and any fees, with no hidden catches.

Will offering finance slow down my sales process?

In many cases it speeds it up because affordability is addressed early. A broker-led process can keep applications streamlined and avoids you having to manage underwriting or regulated paperwork.

What size projects are most likely to need finance?

Mid-sized extensions often benefit from low monthly payments or deferred-payment structures. For projects over £30,000, customers commonly consider equity-based routes because the long-term cost can be lower when spread over longer terms.

Are second charge options relevant to extensions?

They can be, particularly when a homeowner wants to fund improvements without disturbing an existing mortgage deal. They use home equity but keep the main mortgage in place.

What should I put on my website to help SEO and conversions?

Include clear examples of monthly payments for typical project sizes, a simple explanation of APR and total repayable, and an FAQ that addresses eligibility, deposits, and timing. Keep language plain and avoid overpromising.

Do I need FCA authorisation to offer finance?

If you are simply introducing customers to a broker and staying within an agreed introducer framework, you may not need to be authorised yourself. The safest route is to work with an FCA-authorised broker who can guide the compliant setup for your business model.