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What is home improvement?

Written byKoyo Loans
First published17th October 2022
  • Introduction
  • What is home improvement?
  • Can I remortgage to make home improvements?
  • How best to finance home improvements?
  • How much do home improvements increase value?
  • How to add a home improvement loan to a mortgage?
  • How to afford home improvements?
  • Conclusion

In 30 seconds…

Completing a home improvement project is an effective way to add value to your property – as much as 10%, according to research. People undertake home improvements to enhance their property’s aesthetics, make repairs, and prepare the house for sale. You can remortgage to make home improvements, but you can also use cash savings or take out a personal loan to cover the expenses. Once you’ve created a budget, you can assess your options for financing your home improvement project and fund it in a way that makes sense for you and your financial circumstances.


Millions of homeowners every year undertake home improvement projects to increase the value of their properties. Whether it’s a new kitchen, bathroom, or garden extension, home improvements are an excellent way to enhance your property and mean you don’t necessarily have to move home. With that in mind, we explore the different ways in which you can fund home improvement projects, and explain why an unsecured personal loan could be a good option for you.

What is home improvement?

Home improvement is a broad term that is used to describe a range of tasks that you can carry out to enhance your property. You might carry out a home improvement project to improve the interior or exterior of your home, or perhaps even to extend your property.

There are a number of reasons why you might complete a home improvement project, be it for personal comfort, aesthetics, or to add value to your home. Equally, you might need to conduct repairs to your property or make your home more energy-efficient. Whatever your motivation, you need to consider the different ways of funding your home improvement project before carrying out the work.

Applying for a personal loan is an effective way of paying for a variety of home improvements, be it installing a new kitchen or replacing your roof, for example. At Koyo Loans, we provide unsecured personal loans between £1,500 and £15,000, 24.9% APR Representative that you can use to fund home improvements. Use our loan calculator today to work out how much you can borrow and how long you will have to pay it back.

Can I remortgage to make home improvements?

Remortgaging is an effective way of releasing equity in your home that you can then use to pay for home improvements. When done correctly and to a high standard, these home improvements are likely to add value to your property.

To be approved for a remortgage, you will have to show your lender that you can afford the new repayments. They will consider your credit history, income, and expenditure, as well as any other debts that you currently have. If your debt to income ratio is too high, it’s unlikely that you will be approved for a remortgage.

Another important consideration is the equity that you currently have in your property. If you have only just purchased your home, it will be difficult to persuade your lender to offer you more money. However, if you’ve owned your property for several years and have been consistent with your repayments, you’re a better candidate for approval.

How best to finance home improvements?

There are several ways to fund home improvement projects. Arguably the best approach is to use money that you have saved up over time, specifically for the renovations. This means you don’t have to pay any interest and is likely to be the cheapest way of funding a home improvement project.

Alternatively, you can remortgage your property, as we’ve explained above, or you can look for alternative forms of credit. For small home improvement projects, you might be able to take out a zero-interest credit card that enables you to pay for the project outright. Then, provided you pay off the credit card before the interest kicks in, it can be another effective way of funding your home renovations.

If you’re planning a home improvement project that costs between £1,500 and £15,000, you can apply for an unsecured personal loan from Koyo. Our loans are easy to apply for and can be used for a range of purposes. So, whether you’re looking to pay for a brand-new bathroom or have some repairs or maintenance to carry out at home, find out more about how our personal loans work and how to apply for one.

How much do home improvements increase value?

When carried out to a high standard, home improvement projects can add significant value to your property. Research suggests that the average home improvement can add as much as 10% in value to your property, but it really just depends on the type of project that you carry out.

Typically, a conservatory is the home improvement that adds the most value to a property, while landscaping the garden, improving the aesthetics of the exterior of your home, and completing an extension are all great for adding value. Interior renovations like a new kitchen or bathroom can also add significant value to your home, particularly if the spaces are currently looking a little tired.

If you’re unsure about the value that home improvements can add to your property, consider getting your home valued before undertaking the work. You can then speak to the agent and discuss your plans, which will give you an insight into how much value the proposed work is likely to add, before contacting tradespeople to get some quotes to see if the home improvement is financially viable.

How to add a home improvement loan to a mortgage?

Negotiating with your mortgage lender can be an effective way of funding a home improvement project. While some people remortgage to pay for renovations, it may also be possible to borrow more money on your existing mortgage.

Not all homeowners are eligible for borrowing more money against their current mortgage, but it’s a viable option if you have a good credit history and sufficient time remaining on your current mortgage. Another option is to release equity from your home via a lifetime mortgage, which means you can release a portion of your home’s value as a tax-free cash lump sum.

As you can see, there are lots of ways of funding home improvements, so it’s important that you weigh up the pros and cons of each before making a decision. An unsecured personal loan is ideal for home improvement projects up to £15,000, and applying for one means you don’t need to worry about renegotiating the terms of your current mortgage.

How to afford home improvements?

Every homeowner is different, so the affordability of home improvement projects will vary from borrower to borrower. That being said, saving up in advance and using cash to pay for home improvements is arguably the best way to ensure you can afford the work that you’re undertaking.

Begin by creating a budget around twelve months before starting the project and start putting a specific amount of money away each month. As your savings accumulate, you can start getting quotes from various providers, which will provide you with a clear idea of how much the work is likely to cost when you’re ready to begin.

If you don’t want to pay for your home improvement project with cash, you can apply for an unsecured personal loan. Once approved, you will receive a lump sum of cash that you can use to pay for your home improvements. You will then have a specific period of time to pay the loan back – plus interest – meaning you don’t have to empty your savings to begin the home improvement project that you’ve been planning for a long time.


Whether you take out a personal loan or remortgage your property, there are several ways to fund a home improvement project. Our advice is to consider your options with an open mind and do your sums to ensure the work that you undertake will indeed add value to your home. When done right, home improvement projects can improve your quality of life and boost the value of your home, making them an excellent investment if you can afford to carry out the required work.

Koyo Loans is the trading name of BETR Technology Ltd. Company No. 11483187. Registered Office: Huckletree Soho, Ingestre Court, Ingestre Place, London, W1f 0JL

Key Takeaways

There is more than one way to finance a home improvement project. If you’ve got the cash in the bank, paying for the project outright will save you from making interest payments in the future. Alternatively, you can remortgage to release some equity, which can cover the cost of the home improvements that you’re seeking to make.

An unsecured personal loan is another viable way to pay for home improvements, as it’s easy to apply for and affordable when compared to other forms of credit. This also means that you don’t need to worry about renegotiating the terms on your current mortgage, which is a stressful proposition for many homeowners.

To ensure you can afford the proposed home improvements, make sure you begin by creating a budget and consider the value that the work is likely to add to your property. Then, you can take the necessary steps to acquire the most affordable and appropriate funding to start the project, whether it’s remortgaging, using your savings, or applying for a low-interest personal loan.

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