How to pay for a new roof

A new roof is a big job, and one which you’re unlikely to be able to take on yourself.

Because replacing an old roof is expensive, one of the biggest challenges homeowners face is how to pay for it. In this article, we’ll look at how much a new roof is likely to cost you in the UK, and what your options are when it comes to funding it – including credit cards and home improvement loans.

If you already know that you’re looking for a personal loan to pay for a new roof, you can take a look at Koyo’s flexible loan options, use our loan calculator or apply for a loan at www.koyoloans.com. Representative APR 27%.

If you’re still considering your options though, read on!

How much can I expect to pay for a new roof?

According to research into roofing contractors from consumer charity Which? (1), the average cost of a new roof for a three bedroom house is between £4,500 and £7,000.

Of course, that’s just a benchmark, and there are lots of factors that can affect this price – below, we’ll go into more detail on what can affect the price, and what to look out for.

How much should a new roof cost in the UK in 2021?

Alongside the size of your property, the big factors that affect the cost of a roof in the UK are:

• Where you’re based (expect to pay more in London).

• How easy the roof is to access (e.g. whether scaffolding is required).

• The type of materials you’ll be using (e.g. expect to pay a premium for high quality tiles or shingles).

What to watch out for

Costing out a job is complicated slightly by the fact that a roofer may charge you just to offer a quote, since they’ll usually have to inspect the roof themselves.

However, as with most types of home improvement, you’ll want to get a few quotes before committing to anything, and ideally find a provider who will provide a warranty for completed work. And you’ll want to make especially sure that you’re appointing a roofer you trust.

That’s because it’s reasonable for a roofing company to offer an estimate, rather than a quote. Why? Regardless of the type of roof, often problems won’t become apparent until the work is underway – that could mean that your roofer will need to increase the cost significantly. It’s worth speaking to the contractor about different scenarios, so that you have an idea of what the worst case might be before you begin.

In fact, this doesn’t only apply to a replacement roof – it’s also relevant for smaller jobs such as skylight installation, replacement of a few roof tiles or repairs to a flat roof on your garage.

Lastly, roofing is also highly weather dependent – you’ll want to agree with your roofer what will happen if you run into a patch of bad weather which means that work has to stop.

How to pay for a roof

How you pay for your roof is decided between you and the contractor you appoint.

In general, this will involve at least one upfront payment before the work starts, and a final payment after the work has been completed. This last part is important, because it means that the roofer only gets paid in full when the roof is completed to a satisfactory standard.

You’ll also almost certainly have to pay VAT – make sure this is included and budgeted for in your quote.

Related: Four Ways To Finance Furniture For A New Home

What’s the best way to pay for a new roof?

Before we dive in, it’s worth noting two cases where the cost of roof repairs or replacements might not fall to you.

1. If you’re replacing your existing roof due to damage, it might be covered by your insurance company.
2. If you have a leasehold (rather than a freehold – this is more likely to be the case if you’re in a flat), then the cost of a new roof or roofing repairs will usually fall to the freeholder if it’s required.

Assuming neither of the above applies to you, read on.

The best way to pay for a new roof for a house is almost always with your savings, since you won’t have to pay interest or fees in order to do so.

However, many of us aren’t lucky to have that kind of money lying around, so in the rest of this article, we’ll look at other ways to fund a new roof, generally by splitting payments into more affordable chunks.

Can you finance a new roof?

Yes, there are several ways to pay for a new roof. In this section, we’ll cover the key options which are likely to be available to you.

An unsecured personal loan

A personal loan or home improvement loan is a simple way to borrow money: you take out a lump sum, and repay that amount via monthly payments, usually over a few years.

That’s it: it’s an easy form of credit to understand, and there many providers out there, so borrowers with a strong credit history (reflected in part by their credit score) may have their pick of dozens.

If you don’t have a strong credit history though, you’ll find it harder to borrow: you might need to pay more for credit, and are likely to have fewer options available to you.

Unsecured personal loans are a relatively safe type of loan, when compared to secured personal loans. Secured loans require you to put an asset as “security”, usually your house, meaning that your home is at risk if you fail to make repayments. The benefit is that a lender will usually be happy to extend you a larger loan if it’s secured, because it has the option of taking your house if things go wrong. If you can though, it’s usually better to go for an unsecured loan if you have the option.

Koyo is a provider of unsecured personal loans in the UK, allowing you to borrow between £1,500 and £12,000.

Credit card

You may be able to pay for a new roof using a credit card. If you can, it’s worth looking into it, particularly if you have a good deal on your credit card (e.g. if you have 0% APR), so long as you think you can pay it off before you start having to pay interest – which can often be high. If you’re able to manage it well, a credit card can be a cost-effective option.

If you don’t manage to pay the balance off quickly, your interest payable will usually jump quickly, so be sure to budget effectively.

Credit cards also have very specific pros and cons:

On the plus side, by paying for work on a credit card, you’ll probably benefit from Section 75 protection, making the credit card provider jointly liable if things go wrong.

However, because credit cards charge the seller a fee, many tradespeople prefer not to accept credit card payments – so it’s worth mentioning this early if this is something you’d like to do.

Extending your mortgage

Your mortgage (if you have one) is essentially a secured loan against the value of your house. In some cases, you’ll be able to extend your mortgage (i.e. borrow a larger amount) by speaking to your mortgage company, which you can use to fund a re-roofing project.

Otherwise, you may also be able to increase the amount you borrow, by taking out a larger mortgage than you otherwise would, next time you remortgage.

Related post: Financing Home Improvements: Remortgage Or Personal Loan?

One thing to be aware of here is that although mortgage borrowing tends to have a lower interest rate, that rate can change if you have a variable rate mortgage or when your fixed rate term ends.

Also, mortgages tend to be repaid over many years – 2 or 3 per cent adds up very quickly over long periods like this, meaning that it can actually be cheaper to borrow at a higher rate but for a shorter period.

	Pros	Cons
Cash savings	Cheapest way to fund a new roof (since you don’t pay fees or interest)	None
Personal loan	Simple, straightforward way to pay for home improvements Spread cost over several years	Cost varies depending on your personal circumstances – may be expensive for some borrowers or with some providers
Credit card	Can be very cost effective if you manage it well Section 75 protection	Very expensive if it goes wrong Many tradespeople won’t accept it as a form of payment
Add to your mortgage	Effective way to borrow large amounts of money (e.g. £10k+) Often a relatively low headline rate	Complex You’ll be paying off the balance for up to 25 or 30 years depending on the term of your mortgage Your home is at risk if you fail to repay in full

How can you pay for a new roof if you have no money?

It’s important to note that the options mentioned above are only advisable if you can afford to make the repayments. If not, it’s likely that you’ll get into serious, long-term financial difficulty.

If you need a new roof but can’t afford to pay for it, and wouldn’t be able to repay a loan or credit card comfortably, then it might be worth speaking to your local authority.

Your local authority may be able to help you to fund a new roof or other necessary home expenses via a grant or a loan if you meet eligibility criteria – you can find out more here.

What next?

The first thing to do is to speak to some roofing companies to get some quotes. If you’ve already done that and want to know how to fund it, then you might want to look at some of the ways to finance it that we’ve mentioned above.

A great place to start is Koyo’s loan calculator, which can help you to see exactly how a loan would work in practice. And if you’re looking at other home improvement works, take a look at our broader guide to how home improvement loans work.

Hopefully this article gives you all the information you need, but if there’s anything else you want to know, let us know in the comments section below!

(1)  https://trustedtraders.which.co.uk/articles/cost-guide-roofers