{"id":803,"date":"2026-03-13T09:24:33","date_gmt":"2026-03-13T09:24:33","guid":{"rendered":"https:\/\/www.safemoneyloan.co.uk\/blog\/?p=803"},"modified":"2026-03-13T09:24:36","modified_gmt":"2026-03-13T09:24:36","slug":"top-reasons-uk-homeowners-use-personal-loans-for-renovations","status":"publish","type":"post","link":"https:\/\/www.safemoneyloan.co.uk\/blog\/top-reasons-uk-homeowners-use-personal-loans-for-renovations\/","title":{"rendered":"Top Reasons UK Homeowners Use Personal Loans for Renovations"},"content":{"rendered":"\n

One of the most exciting things about being a homeowner is the freedom to renovate the space to meet your upgraded lifestyle goals. There could be many reasons why you may want to uplift your living space. However, the renovations are costly, and savings may not suffice at times.<\/p>\n\n\n\n

Therefore, you can instead check external funding options like personal loans. It offers the flexibility to split the costs of renovation into manageable instalments. You can repay the dues in fixed monthly payments until the loan term. It thus helps you manage important payments against the basic loan ones.<\/p>\n\n\n\n

<\/p>\n\n\n\n

What do you mean by personal loans?<\/h2>\n\n\n\n

Personal loans are unsecured and secured loans that one can use for any purposes, including home improvement and renovation. You can get up to \u00a325000 for 60 months as a personal loan online. The interest rates stay competitive due to the ease of application, and no collateral is required for the loan.<\/p>\n\n\n\n

You can consider one for a loft conversion, a kitchen makeover, bathroom refinishing, upgrading the lawn or a children\u2019s room. Initially, you may get a basic quote when you apply for the loan. It helps you know the amount you can qualify for without impacting your credit score.<\/p>\n\n\n\n

<\/p>\n\n\n\n

How much do Brits spend on home renovations every year?<\/h2>\n\n\n\n

The median annual spending on home renovation in the UK was \u00a314,000 in the year 2025. It decreased from \u00a321,440 in 2024. However, homeowners plan to spend \u00a375000-\u00a3150,000 in 2026 on home renovations. It may increase to \u00a3300,000 for a full renovation.<\/p>\n\n\n\n

<\/p>\n\n\n\n

Why do homeowners use personal loans for home improvements in the UK?<\/h2>\n\n\n\n


Are you ready to remodel your kitchen, convert the loft or the living space? Personal loans may help. You can use it to bridge your renovation needs, finance the material costs or the whole project. Read ahead to know why people borrow a personal loan for home renovation in the UK<\/a><\/strong>:<\/p>\n\n\n\n

1) Improve; don\u2019t move is the new trend<\/h3>\n\n\n\n

Most homeowners are highly embracing the new concept of home improvement instead of moving into a new house. It is the reason home improvement loans are the second most tapped loan in the UK. Moreover, the searches for home improvement increased by 19% in 2025, with over 76000 monthly searches reported in April alone.<\/p>\n\n\n\n

Under this approach, you can renovate, extend space, or remodel instead of purchasing and renovating that property. It helps one save money on<\/p>\n\n\n\n

    \n
  • Moving costs<\/li>\n\n\n\n
  • Stamp duty and other taxes that come with buying a home<\/li>\n\n\n\n
  • Renovation costs<\/li>\n<\/ul>\n\n\n\n

    2) Kitchen and bathroom upgrades<\/h3>\n\n\n\n

    Kitchen and bathroom spaces are one of the most used spaces in a home. The high traffic makes your space look dull, pale and may require immediate care and improvement. According to Hillary, \u201croughly around 23% of homeowners consider renovating a kitchen in 2025\u201d. Moreover, bathroom upgrades are also very common among personal loan users. These renovations are increasingly attracting individuals because they add value to the property. It increases the overall price of the home and helps you sell at a profitable rate (if you do plan to).<\/p>\n\n\n\n

    You can modify the bathroom\u2019s tub, ceiling, floor, etc., to make it more functional. Update the faucets and other aspects for a breathtaking experience.<\/p>\n\n\n\n

    A kitchen remodelling adds up to 5-10% in the property\u2019s value ( up to \u00a325000), and a new bathroom adds 3-5% to the total home\u2019s value (\u00a39000-\u00a315000).<\/p>\n\n\n\n

    3) Time-sensitive renovations<\/h3>\n\n\n\n

    Sometimes, you don\u2019t consider major home upgrades like kitchen transformation, loft conversion and landscaping. However, some renovations like-<\/p>\n\n\n\n

      \n
    • Changing the backsplash repair<\/li>\n\n\n\n
    • Short-circuit repair<\/li>\n\n\n\n
    • Fixing the broken pipeline<\/li>\n\n\n\n
    • Gas leaks<\/li>\n\n\n\n
    • Sewage backups<\/li>\n<\/ul>\n\n\n\n

      In this condition, you cannot wait until you get the salary. Instead, you will need the cash immediately to counter the situation. Here, you can use personal loans that help you get the money the same day.<\/p>\n\n\n\n

      You can prioritise the home improvements according to urgency and then take a loan to finance them. In this case, the average amount that homeowners borrow on personal loans for this purpose is \u00a38,600.<\/p>\n\n\n\n

      4) Increase Property value<\/h3>\n\n\n\n

      Most individuals considering selling the property consider major home upgrades. It could be green home renovations to make the home more sustainable. You may also want to consider a loft conversion or install a lift within the home. Loft conversions may cost around \u00a375000 and increase the property value by 20%. (The Intermediary). Other expensive and high ROI renovations include:<\/p>\n\n\n\n

        \n
      • Extensions<\/li>\n\n\n\n
      • Garage conversions<\/li>\n\n\n\n
      • Energy-efficient home upgrades<\/li>\n\n\n\n
      • Garden landscaping<\/li>\n<\/ul>\n\n\n\n

        For many homeowners, borrowing for home renovations becomes more of an investment instead of just extending the property\u2019s life or leading a comfortable lifestyle.<\/p>\n\n\n\n

        5) High mortgage rates and shifting behaviours<\/h3>\n\n\n\n

        Mortgage rates have been fluctuating since last year. It is surprisingly making remortgaging less attractive to homeowners. Instead of increasing their mortgage debt, many homeowners chose short-term personal loans to fund the requirements.<\/p>\n\n\n\n

        Around 26% plan to borrow a personal loan to improve their home through a mortgage. This demonstrates how renovation finance is increasing in the UK. It helps them get extra funds for the property that you may use for other renovation projects or the next property upgrade. Personal loans may help you fund smaller and less expensive home improvement projects.<\/p>\n\n\n\n

        6) To create additional living space<\/h3>\n\n\n\n

        Most individuals want to extend the living space to make it comfortable. It helps them accommodate a large family and a new entrance in the family. You may need a personal loan for :<\/p>\n\n\n\n

          \n
        • Garage conversion<\/li>\n\n\n\n
        • Home extension<\/li>\n\n\n\n
        • Loft conversion<\/li>\n<\/ul>\n\n\n\n

          Most homeowners take a loan for :<\/p>\n\n\n\n

            \n
          • Convert unused lofts<\/li>\n\n\n\n
          • Extend kitchens<\/li>\n\n\n\n
          • Build additional bathrooms<\/li>\n<\/ul>\n\n\n\n

            7) To reduce bills and for energy efficiency<\/h3>\n\n\n\n

            Energy costs remain a major concern in the UK. It is the reason many homeowners install:<\/p>\n\n\n\n

              \n
            • Insulation<\/li>\n\n\n\n
            • Heat pumps<\/li>\n\n\n\n
            • Double glazing<\/li>\n\n\n\n
            • Solar panels<\/li>\n<\/ul>\n\n\n\n

              Thus, energy-saving home upgrades may help you save \u00a3800\/year on utility bills. It also reduces carbon emissions. It makes a personal loan attractive because homeowners can offset loan repayments through lower energy costs.<\/p>\n\n\n\n

              <\/p>\n\n\n\n

              Bottom line<\/h2>\n\n\n\n

              Thus, these are some reasons that homeowners consider a personal loan for home improvement. Most of these improvements help you upgrade the home with green home or energy-friendly upgrades. It helps you enhance and increase the home space for better comfort. You can also invest in improving the property value to sell it profitably.<\/p>\n","protected":false},"excerpt":{"rendered":"

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