Home improvement loans & what you need to know when applying for one

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There really is no place like home – which is perhaps why it’s the place we cherish more than anywhere else.

It’s a place where we eat, sleep, relax and spend vital time with those closest to us. A place you want your family to be safe, happy and comfortable – so it needs to be just right.  

Making an improvement to your home; whether it’s a new kitchen, a large extension, or any other project that is a large investment could be supplemented by a home improvement loan.

For example, if you’re planning to sell in the near future – you might be looking to add some value to your home as an investment; or you might need to convert your loft into a bedroom urgently, but not have the cash immediately available to pay for it there and then.  

In these examples, a home improvement loan could be a viable option. However, there are a number of things you need to consider if you are weighing up the possibility of borrowing in order to fund your next big domestic project.

 

What do you need to apply for a Home Improvement Loan?

When considering if you should apply for a home improvement loan, it’s perhaps worth bearing in mind what lenders look for in a potential borrower.

The Financial Conduct Authority (FCA) has its own rules on responsible lending in their Consumer Credit sourcebook, which states the lenders must assess your creditworthiness before they lend to you. They will do this by considering:

  • The type of loan (in this case a home improvement loan).
  • The loan amount.
  • Your financial position.
  • Your credit rating.
  • Your existing financial commitments (mortgage, utility bills etc.).
  • Any known future changes in circumstances which could affect you financially.

The purpose of the creditworthiness assessment is to enable the lender to consider the risk or potential for the loan to adversely affect your financial position, and it also enables them to consider the likelihood that you'll make the necessary repayments over a given period of time.

To assess your creditworthiness, the lender will require you to provide some personal details, such as date of birth, address history for the last three years, annual income, details of employment, personal banking information and your residential status.

 

Applying for a Home Improvement Loan with Shawbrook Bank

Getting a quote for a Shawbrook home improvement loan won’t leave a mark on your credit score.

We respect your need to shop around and get the right rate for you. That's why we complete a soft credit search to check your eligibility for a loan, which won't leave a footprint that other potential lenders can see.

 


 

You won’t see us advertising any misleading teaser rates, either.

You’ll pay the guaranteed personal rate that you’re quoted for – which can help you make a well-informed decision about whether you should proceed before you even actually go ahead with the application.

These values form our five-point Transparency Charter – in which we promise to provide an honest, upfront, open, clear and fair service for all of our customers.

With a Shawbrook home improvement loan, you could borrow from £1,000 to £35,000 – so you can borrow for small scale projects as well as large. Loan terms are available from 1-7 years, with fixed monthly repayments.

In order to apply, you will need to be meet our eligibility criteria:

    • Aged between 21-75 years of age.
    • UK resident for a minimum of 3 years.
    • Minimum annual income of £15,000.
    • Own a UK personal bank account.

To proceed with the quote, it might be useful to have a number of key details written down in front of you – or have certain documents handy to help you through the process.

The online application form requires:

  • Your address history for the last three years
  • Your residential status (choose between owner occupier, living with parents, council tenant or tenant).
  • Your email address.
  • Your phone number.
  • Employment situation (choose from employed, student, retired, part time, temporary employment, unemployed, self-employed or armed forces).
  • Your gross annual income.
  • The amount you wish to borrow and the loan term.

When this part is completed, we can provide you with your personalised instant quote.

If you’re happy with the quote offered, you can proceed with the application. We’ll ask you to provide a bit more information, such as your bank details and you will need to accept the quotation and allow us to complete a full credit search. If we can verify all the information provided, we will then send the e-signature pack with the loan documents for you to review. If you accept everything within it – all you need to do is sign and submit the forms. Then the money should appear in your account within 3 working days.

We’re a Feefo Gold Trusted Service – so we pride ourselves on having a great track record when it comes to helping people through the loan application process.

Whilst you’re here, why not explore how a home improvement can add value to your home and get your instant quote for a home improvement loan today.