Offer finance for loft conversions

Turn your attic into space - and fund it with confidence

A loft conversion can unlock a new bedroom, home office or studio without moving house. Across the UK in 2025, typical projects cost around £55,000 to £120,000, with London often £60,000 to £130,000. That span reflects the type of conversion, property age, structural needs and specification. Because costs concentrate over a short build period, choosing the right finance is as important as hiring the right builder.

There is no single best way to pay. Unsecured personal loans are quick and predictable, usually up to £35,000 with fixed monthly repayments. Remortgaging can unlock larger amounts at mortgage-level rates if you have sufficient equity. Further advances and secured homeowner loans can do similar, with different fees and flexibility. Over-55s might consider equity release for a lump sum without immediate monthly repayments. For smaller items like decoration and furnishings, a 0% purchase credit card can smooth cash flow. Energy-efficiency grants or council-backed low-interest schemes may reduce your outlay if you are adding insulation, efficient glazing or renewables. Specialist renovation and bridging finance can fill gaps on bespoke timelines. Many homeowners blend options to balance cost and control.

Understanding APR is not just about percentages - it is about what you will pay in real terms, and how the loan term interacts with your budget. The right structure should cover labour and materials, protect your contingency, and avoid overexposing your home to risk. As a UK-based retail finance broker, Kandoo helps you compare routes, so you can get the space you need with a repayment plan that fits your life.

A well-planned loft conversion can lift both liveability and long-term value.

Build in a 10-15% contingency to handle surprises without stress.

Who is this for?

If you are a UK homeowner planning a loft conversion in 2025 - from a simple rooflight layout to a full-width dormer - and you want clear, credible ways to fund it, this guide is for you. It suits people who prefer fixed monthly repayments, those with strong equity looking to remortgage, and over-55s exploring lifetime mortgage options. It also helps households managing smaller costs such as insulation upgrades, second-fix finishes, or furnishings. Whether you live in a terraced home in Manchester or a semi-detached in Surrey, the principles below will help you match finance to scope, timescale and risk appetite.

Ways to fund your project

1. Unsecured personal loan - borrow roughly £1,000 to £35,000, typically over 2-7 years, with rates from around 6.3% APR representative for £7,500 to £25,000.

2. Remortgage - switch lender or product to release equity at mortgage rates, suitable for larger budgets when rates and fees stack up.

3. Further advance - add borrowing with your current lender, often quicker than remortgaging, subject to affordability and loan-to-value caps.

4. Secured homeowner loan - borrow larger sums against your property at competitive rates, but your home is at risk if you miss repayments.

5. Equity release (over-55s) - lifetime mortgage providing a tax-free lump sum, typically no monthly repayments, interest rolls up until repayment.

6. 0% purchase credit card - cover smaller costs like decorating or furniture, repay in the promotional period to avoid interest.

7. Energy-efficiency grants or council schemes - reduce net cost when adding insulation, efficient windows or renewables, eligibility varies locally.

8. Specialist renovation or bridging finance - tailored to complex builds or tight timelines, with flexible drawdowns and exit strategies.

9. Combination approach - mix savings, loans and grants to optimise cost, flexibility and risk.

Costs, impact and risks at a glance

Can you qualify?

Lenders assess affordability first - your income, outgoings and stability. A strong credit history helps for unsecured loans, where typical limits cap around £35,000 and terms run 2 to 7 years. For remortgaging, further advances and secured loans, loan-to-value is crucial. You will usually need enough equity to keep LTV within lender thresholds after borrowing, plus acceptable debt-to-income ratios. Product fees and any early repayment charges on your existing mortgage should be weighed against achievable rates. Over-55s considering equity release must meet minimum age criteria, pass property suitability checks and take regulated advice. In all cases, accurate quotes from loft specialists, proof of planning or permitted development status, and confirmation of building regulations compliance will strengthen applications. Insurers should be notified before work starts. As a UK-based retail finance broker, Kandoo can help you compare products across lenders, highlight eligibility considerations, and avoid options that do not fit your budget or timeline.

From idea to funds - step by step

1. Define scope, drawings and a realistic cost range.

2. Get three specialist quotes and verify references.

3. Check planning, permitted development and building regulations.

4. Set a 10-15% contingency and cashflow timeline.

5. Compare finance routes, rates, fees and terms.

6. Run affordability checks and soft-search eligibility.

7. Apply with documents - ID, income, quotes, plans.

8. Complete, draw funds, and align payments to milestones.

Upsides and trade-offs

Before you sign anything

Scrutinise the total cost of credit, not just the APR. Factor in product fees, valuation and legal costs, and any early repayment charges. Compare remortgage offers with the cost of staying put and taking a further advance or a separate secured loan. Decide whether a fixed or variable rate suits your risk tolerance and timeline. If using equity release, understand roll-up interest and its impact on inheritance. Confirm your builder’s programme and tie finance drawdowns to milestones to avoid cash bottlenecks. Keep at least a 10-15% contingency for insulation upgrades, steels, or unforeseen roof work. Finally, notify your buildings insurer, and ensure all work meets UK building regulations - certificates matter when you sell.

If plans change - alternatives

1. Scale the specification - retain structure, reduce premium finishes now.

2. Split phases - complete structural shell now, fit-out later.

3. Consider a smaller dormer or rooflight-only layout.

4. Explore a garden room or garage conversion instead.

5. Increase savings period to reduce borrowing requirement.

6. Rent space elsewhere short term if you need capacity.

FAQs

Q: How much should I budget for a typical UK loft conversion in 2025? A: Most projects fall between £55,000 and £120,000, with London often £60,000 to £130,000. Obtain tailored quotes from specialists to refine your budget.

Q: Are unsecured personal loans suitable for full conversions? A: They can cover part of the cost up to around £35,000, with fixed repayments. Larger schemes often need remortgaging, secured loans or a blended approach.

Q: Will remortgaging always be cheaper? A: Not always. Consider fees, early repayment charges and term resets. Sometimes a further advance or separate secured loan is more cost-effective.

Q: Can I use a 0% credit card for materials? A: Yes, for smaller spends like decorating or furnishings. Clear the balance within the promotional period to avoid interest at the revert rate.

Q: Do loft conversions increase property value? A: Often, yes. Adding liveable space can lift resale potential, though outcomes vary by location, design and build quality. Keep records and certificates.

Q: What grants are available? A: Local councils may support energy-saving measures such as insulation or efficient windows. Eligibility and amounts vary, so check your council’s schemes.

How Kandoo can help

Kandoo connects UK homeowners with a wide panel of lenders, from unsecured personal loans to secured products and specialist renovation finance. We help you compare real rates, fees and terms, so you choose a route that fits your project and budget. Speak to us early to align funding with your build timeline.

Important information

All finance is subject to status, affordability and terms. Your home may be repossessed if you do not keep up repayments on a mortgage or secured loan. Rates, amounts and eligibility can change. Seek regulated advice where required.