Offer finance for full home renovations

Why UK homeowners need smarter renovation finance

Full home renovations are no longer niche projects. Across Britain, homeowners are investing heavily in reconfigurations, extensions and essential upgrades to make homes warmer, more functional and future ready. In 2024, over half of homeowners undertook work and the median renovation spend rose to £21,440, up sharply on the prior year. The top 10 percent spent in six figures, reflecting a strong appetite for complete transformations. Two in five upgraded heating, plumbing or electrics, driven by an ageing housing stock that needs more than cosmetic fixes.

At the same time, how people pay for renovations is changing. Most renovators still lean on savings, but reliance on credit cards has dropped as households seek better-value ways to borrow. Specialist home improvement loans now account for a significant share of UK borrowing, with average loan values that match the scale of substantial projects. In London, typical loan sizes are notably higher, while searches for home improvement have surged, signalling intent across the country.

Understanding APR is not just about percentages - it is about what you will pay and when. With a full renovation, cash flow matters as much as cost. Phasing work, choosing a fixed rate where possible, and matching the loan term to the useful life of improvements can keep monthly outgoings predictable. Renovation finance is ultimately about control: aligning the project timeline with funding that is transparent, affordable and flexible.

Improve, do not move: many households are staying put and upgrading because moving costs, higher mortgage rates and stamp duty can make relocation less attractive than renovating in place.

A well chosen finance option can bridge the gap between savings and the real-world cost of works. It can also unlock value-adding projects like loft conversions that typically boost sale prices while enhancing everyday living.

Who benefits most

If you are planning a full renovation of a flat or house in the UK - rewire, replumb, layout changes, kitchen and bathroom upgrades, insulation or an extension - tailored finance can help you move decisively. This is especially relevant if your savings cover part of the project but you want to avoid high-interest revolving credit. Homeowners aiming to improve rather than move, families needing space without upsizing, and buyers of older properties tackling essential systems will find structured finance a practical solution. Landlords updating for compliance and energy performance may also benefit, provided lending criteria are met and rental income supports affordability.

Finance routes worth considering

1. Unsecured home improvement loan - fixed-term borrowing, predictable monthly repayments.

2. Secured homeowner loan - larger amounts using property as collateral.

3. Embedded point-of-sale finance via approved contractors - staged drawdowns for milestones.

4. 0% or low-rate promotional credit - useful for specific items and shorter durations.

5. Credit union loan - community lending with competitive rates and fair terms.

6. Green upgrade finance - funding focused on boilers, heat pumps and insulation.

7. Remortgage or further advance - potentially lower rates, but with fees and longer terms.

Cost, impact, returns and risks

Big projects merit contingency. Aim for 10% - 15% of total budget.

Eligibility and what lenders look for

Most lenders assess a combination of credit history, income stability and affordability across your household bills and commitments. For unsecured home improvement loans, typical amounts range from a few thousand pounds up to around £50,000, with terms commonly two to seven years. Secured homeowner loans can stretch higher, but your property is at risk if you do not keep up repayments. Lenders often ask for evidence of income, recent bank statements, and details of existing credit. For full renovations, expect to provide contractor quotes, a schedule of works, and planning or building control approvals if required.

Property specifics matter. Flats with short leases, non-standard construction, or listed status can limit options. Regional pricing differences can influence loan size expectations, and joint applications may improve affordability. If you are renovating a property you live in, consumer lending rules apply. If you are a landlord, products and criteria can differ. Kandoo, as a UK retail finance broker, matches your needs with a panel of lenders so you can compare terms quickly without making multiple applications yourself.

From application to approval - the practical steps

1. Scope the work and set a realistic total budget.

2. Gather quotes, timelines and planning or building control details.

3. Check your credit file and tidy up any obvious errors.

4. Use Kandoo to compare tailored lender offers.

5. Choose term and amount aligned to project phases.

6. Complete affordability checks and submit documents.

7. Receive funds and agree staged payments with builder.

8. Track spend, manage variations and keep contingency intact.

Advantages and trade-offs

Before you commit

Build a realistic timeline that includes design, permissions and lead times for materials. Price volatility has eased but it still pays to lock quotes early and agree how variations will be handled. Keep payments milestone based and never pay for materials twice. If your project includes essential systems in an older home, plan for contingencies such as pipework reroutes or rewiring behind walls. Consider insurance for renovation works and confirm your contractor’s warranty, indemnity cover and references. Finally, test affordability at a higher stress rate so the monthly cost remains comfortable if your circumstances change.

Alternatives if your plans change

1. Phase the project and fund each stage separately.

2. Blend savings with a smaller loan to reduce interest.

3. Consider a further advance with your mortgage lender.

4. Use a credit union for mid-sized, fixed-rate borrowing.

5. Explore grant schemes for eligible energy upgrades.

6. Delay non-essential works until prices or income improve.

FAQs

Q: How much do full renovations typically cost in the UK? A: A complete renovation of a typical three-bedroom home averages around £76,690, though scope, location and specification can push costs higher.

Q: Will renovating add value to my home? A: Many projects do, especially space-creating works like loft conversions and well designed kitchen extensions. Market conditions and quality of finish influence the eventual uplift.

Q: Are unsecured or secured loans better for big projects? A: Unsecured loans offer fixed terms without putting your home at direct risk, but amounts can be lower. Secured loans allow higher borrowing at the cost of using property as collateral.

Q: Can I use multiple finance options together? A: Yes. Some borrowers blend savings, a primary loan and short promotional credit for appliances or finishes. Keep track of the total monthly commitment.

Q: How fast can I get funds? A: Many unsecured loans can fund within days once documents are verified. Secured loans and remortgages usually take longer due to valuations and legal steps.

Q: What credit score do I need? A: There is no single number, but a clean history and stable income help. Kandoo works with a panel of lenders, improving your chances of a suitable match.

How Kandoo can help

Kandoo is a UK-based retail finance broker that helps you compare tailored renovation finance from a panel of trusted lenders. We prioritise clarity on rates, terms and total costs so you can choose with confidence. Start an enquiry, see your options without pressure, and secure funds that fit your project and budget.

Important information

All finance is subject to status, affordability and credit checks. Rates and amounts depend on your circumstances and the lender’s criteria. Your property may be at risk if you secure debt against it. Always consider independent financial advice where appropriate.

Next step: get your quotes, set your budget, then ask Kandoo to match you to lenders for a whole-house renovation plan that fits.