How does a home improvement loan work?

A home improvement loan is a personal loan you can use for changes and renovations to your home. This could be for an upgrade, like an extension or loft conversion. Or you can use it for major repairs.

MBNA personal loans are provided exclusively by Lloyds Bank plc. MBNA Limited act as a credit broker and not the lender.

Features of a home improvement loan

3.1% APR representative for loans of £7,500 to £25,000 over 1 to 5 years.

  • No surprises, with fixed monthly payments.
  • Apply online in minutes and get an instant decision.
  • Apply for between £1,000 and £25,000.
  • Choose to make your monthly repayments over 1 to 7 years.

If you’re approved, you should have the money in your account within 24 hours. In some cases it may take a bit longer, but no more than 5 working days.

Home improvement loan calculator

Use our calculator to get an idea of what your monthly repayments could be. Note: this calculator is for illustrative purposes only. If you apply, you may be given a different rate depending on your circumstances.




Monthly repayments


Total amount repayable


Illustrative APR


The rate you are offered may be different to the rate shown in the calculator.

That is because it is based on your personal circumstances, how much you want to borrow and how long you want to pay it back.

Apply now to get your personalised rate

Get started

Representative example

You could borrow £10,000 over 48 months with 48 monthly repayments of £221.59. Total amount repayable will be £10,636.32. Representative 3.1% APR, annual interest rate (fixed) 3.06%.

The representative APR applies to loans of £7,500 to £25,000 over 1 to 5 years. Other terms and loan amounts are available at different rates. The maximum APR you could be offered is 29.9% APR.

The representative APR is the rate that at least 51% of people are expected to receive when taking out a loan within the stated amount and term range.

Apply online with ease

Apply online for an MBNA car loan in minutes and get an instant decision.

Repayment holidays

You could apply for up to 2 repayment holidays each year, subject to approval. Just be aware, interest is still charged for the months you don’t make payments. This means you’ll pay more interest overall and the loan term will increase.

Quick access to your cash

If your loan is approved, you could have the money within 24 hours. In some cases, it may take a bit longer, but no more than 5 working days.

Before ripping up floorboards, start with a touch of planning and a splash of research.

Make a plan

First, decide what improvements or repairs need to be made.

If you’re pretty handy:

Cost up materials, furnishings and finishing touches.

If you need a professional:
  • Make some calls and get a few quotes to compare.
  • Check when tradespeople will be available.
  • Factor in seasonal conditions, like the weather or holidays, into your plan.

Work out costs

When your plan’s in place, work out total costs – keeping in mind there could be additional, unexpected costs. Then, see how much you need to borrow and decide if a loan is the best option for you.

Does it fit your budget?

Look at the money you have coming in and your expenses going out. This helps you work out what you can afford to pay back each month.

You can apply for a loan if:

  • You’re aged 18 or over.
  • You’re a UK resident (excluding the Channel Islands and Isle of Man).
  • You’re not in full-time education.
  • You’re in paid employment or have a regular income.
  • You’ve not been declined for credit in the last month.
  • You don’t have a history of bad credit.
  • You are not applying for any of these reasonsLoans will not be provided for speculative purchases (gambling, investments and share purchases), any illegal purposes, business related purposes, purchase/lease of land or property, either full or part purchase (including deposit), timeshares/holiday clubs..

Frequently Asked Questions

  • This depends on your personal circumstances. A loan is just one option you could use to pay for home improvements.

    It’s useful to compare the overall costs of each option, including the interest, and the length of the term. You can then make a more informed decision about which borrowing option is right for you.

    If you’re only doing small home improvements, a credit card may be a more suitable option, especially if you can pay it off in full each month or before the end of any introductory period. We have a handy guide on comparing credit cards and loans.

    Remortgaging – where you switch your mortgage from one agreement to another – is also an option. If you have some equity in your home, you may be able to borrow more on your new mortgage to pay for your home improvements.

    If you stick with your current mortgage provider, you may also be able to borrow more. It’s worth speaking with your provider to understand your options.

    Again, it’s important to think about the overall cost of each option to see which is right for you.

  • No, home improvement loans are unsecured. This means they are not secured against your home, unlike a mortgage.

  • When you apply for your loan, we’ll tell you how much your monthly repayments will be. This is a fixed amount until you pay the loan back and includes the interest. The repayments will start the month after your agreement begins. We’ll take them by Direct Debit on a date that suits you.

    You can make extra payments with no charge. However, if you pay the loan off early, we may charge you up to 58 days’ interest.

    If you miss a repayment, your account may be passed onto our collections team and you’ll be charged £25. And if more repayments are missed, you may be charged more.

    You can also apply for up to two repayment holidays a year (subject to approval). Interest will be charged for the months you don’t make any payments. This means you'll pay more interest overall and your original term will be extended.

  • Getting a personalised quote, telling you what your repayments would be, doesn’t affect your credit score – we’ll only do a ‘soft search’ then. If you go on to apply, we’ll then do a full credit check, called a ‘hard search’. This helps us understand if you’re likely to have any problems paying the loan back.