How to pay for home improvements

This will help prevent the cost of your renovations from spiralling out of control by avoiding the ‘extras’ you hadn’t planned for.

List all the things you want done – and ask for written quotes rather than estimates.

• a quotation is an agreed fixed price 
• an estimate is an approximate price that could change.

Make sure you get at least three quotes and compare them in detail and try to find reviews from previous customers.

When you choose a tradesperson, make sure you get a written costed agreement. If they tell you they need to do work after the job has started, ask for a written estimate and another costed work schedule. Do this before agreeing to spend any more.

Taking the time to work out the full cost of any borrowing is a good way to make sure you can really afford it.

If you’re able to, try and pay for as much as you can using savings, interest charges can add up quickly. It’s important to keep enough in savings to cover any unexpected costs.

If you do need to borrow money for your home improvements it’s important to not take out debt that you can’t afford to pay back. And don’t forget that any application for a loan or credit card may have a negative effect on your credit score.

• Read our guide to the different types of finance.
• Read our guide on Increasing your mortgage – getting a further advance. And to find out how much your monthly payments could be, use our mortgage calculator.
• Find out more about secured and unsecured borrowing.
• For small home improvements, consider a credit card giving 0% interest on balance transfers or new purchases. If you’re hiring a tradesperson they might not accept credit cards but it’s worth asking. If you’re buying parts for the build with a credit card you might benefit from Section 75 protection. Find out more in our guide How you’re protected when you pay by card.

• Identify the cheapest way of borrowing over the shortest time period. And compare the total cost of borrowing, not just the interest rate. 
• Read our Managing credit well guide.
• Work out monthly repayments using our loan calculator.

The Green Deal helps you make energy-saving improvements to your home and to find the best way to pay for them. There are loans available through this scheme, but you will need to pass eligibility checks to qualify for them and they will need to be repaid. Loans aren’t available in Northern Ireland.

The improvements that could save you the most energy will depend on the type of home you have, but typical examples include: 

• insulation, such as solid wall, cavity wall or loft insulation 
• heating 
• draught-proofing 
• double glazing 
• renewable energy generation, such as solar panels or heat pumps.

It’s worth noting if you check your Energy Performance Certificate (EPC) it should give you ways to improve your home efficiently and show how much difference it should make.

The Warmer Homes Scheme can cover the costs of energy-saving improvements such as draught proofing or loft insulation.

To qualify, you must have owned or privately rented your home for at least a year – and you must be receiving certain benefits.

If you don’t qualify for the Warmer Homes Scheme, you might be able to apply for an interest-free loan instead to pay for the improvements.

Some local councils in Scotland also run their own schemes. Use the Fund finder tool on Home Energy Scotland websiteOpens in a new window

The Nest scheme offers free advice on ways you can make your home more energy efficient. If you qualify, you can also apply for free boilers or insulation.

If your boiler is inefficient and more than 15 years old, you might be able to get a grant of up to £1,000 to replace it. This is if your household income is less than £40,000 a year.

Do you own your home or rent it from a private landlord, and have a total household income of less than £20,000? Then you might be able to get grants of up to £7,500 to make improvements such as insulation, heating and window glazing.

If you get a phone call, email or text message out of the blue that claims you qualify for the Green Homes Grant, it might be a scam.

Don’t reply – and if it’s a phone call hang up immediately. Take the time to check the individual or company is genuine.

If you’re worried, you can call Action Fraud on 0300 123 2040 or go to the Action Fraud website for advice.

With your permission, they’ll share anonymous details of the scam with the police.