Home improvement loans

There are other ways to fund your home project if a home improvement loan isn't right for you:

• Savings - The cheapest option if you have enough money set aside, as you won't pay any interest or fees. 

• Credit cards - Good for smaller projects or if you can pay off the balance quickly, but interest rates can be high for longer-term borrowing.

• Remortgaging - Release equity from your home to fund improvements, often at lower interest rates than loans, though your property would be at risk if you can't repay.

With Ocean, you can borrow between £1,000 and £500,000.

We offer loans between 1 and 30 years. 

Depending on the type of loan you apply for, you may be able to receive your funds on the same day.

• Personal (unsecured) loans can pay out within a matter of hours or days.

• Homeowner (secured) loans can be same day, but usually take a few weeks given the extra checks involved.

Missing loan payments can have serious consequences that get worse over time: 

• Late fees and charges - You'll usually be charged a penalty fee for each missed payment, adding to what you owe. 

• Damage to your credit score - Missed payments are recorded on your credit file and can make it harder to get credit in the future. 

• Default notice - If you keep missing payments, your lender may send a formal default notice giving you time to pay what you owe.

• Debt collection or legal action - In serious cases, your debt might be passed to collectors or your lender could take you to court.

• Repossession – If the loan is secured against your home and you do not keep up with repayments, as a last resort, the lender could repossess your property.

If you're struggling with repayments, contact your lender early. Speaking to them as soon as possible may mean they’re able to help with a repayment plan. 

Before you apply for a home improvement loan, think about these important factors:

• Check your credit score - Knowing your credit rating helps you understand what rates you're likely to be offered.

• Get accurate quotes – If using builders, shop around with different tradespeople to understand the real cost of your project, including any potential extras.

• Check your budget - Make sure you can comfortably afford the monthly repayments alongside your other expenses for the full loan term.

• Compare interest rates - Look at different lenders to find the best deal, as rates can vary significantly between providers. Using a loan broker can be very useful here.

• Consider the loan term - Longer terms mean lower monthly payments but you'll pay more interest overall.

• Think about timing - Plan when you'll need the money and how long your project will take. Some larger renovations can be quite unsettling, which could mean having to stay (and pay) to live elsewhere.

• Have a back-up fund - Set aside extra money for unexpected costs, as home improvement projects often go over budget.

Applying for a loan can affect your credit score, but the impact depends on how you go about it: 

• Soft searches don't hurt - Many lenders offer eligibility checkers that only do a ‘soft search’. These won't affect your credit score and give you an idea of your chances of acceptance.


• Hard searches do show up - When you formally apply, lenders do a ‘hard search’ which appears on your credit file and can temporarily lower your score by a few points.


• Multiple applications can harm - Applying for several loans in a short time can damage your credit score, as it suggests you're desperate for credit.

• Successful loans can help - If you're approved and make all your payments on time, this actually improves your credit score over time.

Most lenders allow you to make extra payments or pay off your loan early, but there are some important things to know: 

• Early repayment charges - Many lenders charge a fee for paying off your loan early, usually a percentage of the remaining balance.


• Overpayment limits - Some lenders let you overpay a certain amount each year without penalties, often around 10% of your balance.


• Check your loan terms - Read your agreement to see if early repayment is allowed and what conditions apply. 

Yes, many lenders offer joint home improvement loans, which can be a good option if you're sharing the property and costs. Things to remember: 
 

• Both applicants are responsible - You're both legally liable for the full loan amount, not just half each, so if one person stops paying, the other would have to make up the difference.

• Combined income helps - Lenders look at your total household income, which might help you qualify for a larger loan amount. 


• Both credit histories count - The lender will check both applicants' credit scores, so a poor score from either person could affect your application. 


• Joint ownership works best - Most lenders prefer both applicants to be on the property deeds, though some accept tenants in common arrangements. 


• Consider the relationship - Think carefully about taking on joint debt, as you'll both remain responsible even if your relationship changes. 


• One person can't cancel - Both parties need to agree to any changes to the loan, and one person can't remove themselves without the lender's consent. 


• Affects both credit files - The loan will appear on both applicants' credit reports, impacting future borrowing for both. 

If you wanted to get a secured home improvement loan after purchasing a property, you can usually apply straight away. However, there are a few things that might affect your application: 

• Recent mortgage can affect affordability - Lenders will consider your new mortgage payments when checking if you can afford the loan repayments. 


• Credit checks show recent activity - Your house purchase will show up on recent credit checks, but this shouldn't stop you getting approved if you meet other criteria. 


• Deposit and fees can impact outcome - If you've just used your savings for a home deposit and fees, make sure you can still afford the loan payments. 


• Consider timing of work - Think about whether you want to settle into your new home first before starting major renovation work.