Personal Loan - House Renovation


From small DIY fix-ups through to major re-construction projects, renovations can be a great way to add value to your home or holiday home. There are a number of finance options available to renovators, so it is important to understand which type is best suited to your circumstances. Renovation loans use a home's estimated after renovation value instead of its current home value to calculate how much a homeowner can borrow. This gives homeowners the credit for the increase in home value from the proposed renovation upfront.


Opportunity to undertake renovations and increase the value of your property by more than the cost of the renovations. Lenders will usually only allow an increase in an existing loan or a new loan only if the total amount of the loans does not exceed 80% of the value of the property. Otherwise, some lenders may require Lenders’ Mortgage Insurance which essentially protects them in case you default. This will be an additional cost to the borrower.


The loan is secured against the value of property being renovated. This means, if the borrower defaults in their repayments and cannot repay the amount owing the lender may compel them to sell the property to settle the debt in full and call on any personal guarantees provided to support the loan.

Repayment terms

The borrower will be required to pay interest at a fixed or variable rate or a mix of the two on the principal outstanding and any agreed upfront, ongoing and exit charges


To be matched with a Renovation Loan bidder, just follow our anonymous Home Loans/Renovation listing process.