Benefits of a home improvement loan

Big or small, home improvements can be time consuming and expensive, so a personal loan could be a great way to spread the costs.

You choose the loan amount and how long you want to borrow for. With fixed monthly payments you’ll always know where you stand.

It could take a long time to save enough money to do the work needed, so a loan could be particularly helpful if your home improvements can’t wait.

3.1% APR representative for loans of £7,500 to £15,000 over 1 to 5 years.

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

Here are a few things to think about before you start ripping those floorboards up:

Make a plan

Decide what home improvements need to be made and then do some research.

If you’re pretty handy:

Cost up materials, furnishings and finishing touches.

If you can’t do the work yourself:
  • Make some calls and get a few quotes to compare.
  • Check when tradespeople will be available.
  • Think about seasonal things, like weather conditions, which might affect your plan.

Work out the cost

Once you have your plans in place, you can work out the total cost of the project. Before you decide on a loan amount, it might be sensible to check over the costs involved. This is so you can make sure you’d be able to cover additional expenses if the unexpected happened... who knows what’s lurking behind that wallpaper.

Does it fit your budget?

Take a look at what money you have coming in, then look at how much your regular expenses are. This will help you see how much you could afford to pay back each month and whether a home improvement loan is the best option for you.

Apply for a home improvement loan

As with any loan, when you apply there will need to be checks about your personal situation. These checks will affect the decision whether to offer you a loan. The loan amount and the interest rate you'll be offered will also be based on these checks.

How it works when you apply for an MBNA personal loan:

  • You can apply for between £1,000 and £25,000.
  • Choose to make your monthly repayments over 1 to 7 years.
  • It takes about 10 minutes to apply online and get a decision.
  • If you’re approved, you should have the money in your chosen account within 5 working days.

Representative example

You could borrow £10,000 over 48 months with 48 monthly repayments of £225.04. Total amount repayable will be £10,796.40. Representative 3.1% APR, annual interest rate (fixed) 3.06%.

The representative APR applies to loans of £7,500 to £15,000 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.

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