How to pay for home improvements
Follow the steps below to make sure you get your house in order when paying for home improvements.
Compare tradespeople and set a budget
This will stop the cost of your renovations spiraling out of control by avoiding the ‘extras’ you hadn’t planned for.
List all the things you want done and ask for quotes rather than estimates. Make sure you get at least three quotes, compare them in detail, and try to find reviews from previous customers.
Decide on the best way to pay for your improvements
Taking the time to work out the full cost of any borrowing is a good way to ensure you can really afford it.
As a rule of thumb, use savings instead of borrowing if you can.
- Read our guide: Do you need to borrow money?
- Identify the cheapest way of borrowing over the shortest time period, and compare the total cost of borrowing, not just the interest rate (APR).
- Read our guide: Working out a repayment plan for your borrowing.
- Work out monthly repayments using our loan calculator.
Choose the right type of finance
Choosing the wrong way to pay for home improvements can prove costly, but choose the right type and you could find yourself with an interest-free loan or credit card.
- Read our guide to the different types of finance.
- Read our guide: Increasing your mortgage – getting a further advance, and use our mortgage calculator to find out how much your monthly payments could be.
- Find out more about secured and unsecured borrowing.
- For small home improvements, consider a credit card giving 0% interest on balance transfers or new purchases. Read our guide to balance transfers.