Yes, you can get a loan to help with moving house costs, but whether it’s the right option for you will depend on your circumstances.
Many lenders offer loans that you can use to cover removal expenses, furniture, and other moving costs.
Reasons you may need a loan when moving
Moving home can come with hidden costs that catch people by surprise. A loan might help you spread these costs over time, rather than paying everything upfront. Here are the main reasons why you might need financial help:
- Removal and transport costs – Professional removal companies can charge anywhere from £400 to £1,500 or more, depending on how far you're moving and how much stuff you have. You might also need to hire a van if you're doing it yourself.
- Home improvements and repairs – Your new home might need urgent repairs or updates before you can move in comfortably. Things like fixing a boiler, redecorating, or replacing carpets all cost money.
- New furniture and appliances – You might need to buy white goods like a washing machine, fridge, or cooker for your new place. Furniture costs can also mount up if you're moving to a bigger home.
- Overlap in rent or mortgage – Sometimes you need to pay for both your old and new home at the same time for a few weeks. This double payment can strain your budget.
Types of loans available when moving home
Several loan options can help you finance your move. Here's what's available:
- Personal loans – These are the most common choice for moving costs. You borrow a fixed amount and pay it back in monthly instalments over one to seven years. Personal loans usually have lower interest rates than credit cards, and you'll know exactly what you're paying each month. You can typically borrow between £1,000 and £15,000.
- Guarantor loans – If you have poor credit or limited credit history, a guarantor loan might help. Someone you trust (usually a family member) agrees to make payments if you can't. The guarantor then becomes responsible for the payments if you’re unable to make them. This gives lenders more confidence to approve your application.
- Bridging loans – These are short-term loans designed to "bridge" the gap when you're buying a new home before selling your old one. They're usually expensive as they come with high interest rates and should only be used as a last resort. Most people don't need this type of loan.
- Budgeting loans (if you receive benefits) – If you're getting certain benefits, you might qualify for an interest-free Budgeting Loan from the government to help with moving costs. You'll need to have been receiving benefits for at least six months.
Should I get a loan when moving?
Before taking out any loan, it’s wise to work out exactly how much you need and only borrow what you can afford to repay. Check the interest rate, monthly payments, and total amount you'll be charged so you can compare different lenders to find the best deal for your situation.
Remember that taking out a loan is a serious commitment, particularly on top of other costs which come with moving. Make sure you understand all the terms before you sign anything.
Zubin is a personal finance writer with an extensive background in the finance sector, working across management and operational roles. He applies his experience in customer communication to his writing, with the aim of simplifying content to help people better understand their finances.
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