Home improvement loans

From revamping your interiors, to making room for the newest member of your family. A home improvement loan could help with your next project.

Start eligibility check

With our partner, ClearScore, you can find out what loans you could be eligible for. ClearScore are a credit broker, not a lender. Together we give you access to a carefully selected panel of lenders.

What is a home improvement loan?

A home improvement loan is a personal loan used to fund your home improvement project.

Depending on what you have in mind, Loans from Co-op have you covered with access to loan amounts from £1,000 to £500,000+.

Secured vs unsecured loans

There are 2 types of loans which could help with home improvements: unsecured personal loans and secured homeowner loans.

A secured loan (also known as a homeowner loan) is a type of loan suitable for people who own a home with a mortgage. This loan is separate from your current mortgage. You can borrow between £10,000 and £500,000+ over 1 to 30 years, subject to lender's affordability assessment.

With an unsecured loan the lender looks at things like your income and credit history to decide if you can get the loan. These loans are often faster to get but might cost more. You can borrow up to £25,000 with unsecured personal loans from Co-op.

You do not need to know which loan type you need. When you use the eligibility checker online, it will automatically show your options. Secured loans will only appear if you're a homeowner with a mortgage.

See our guide on secured and unsecured loans for more information about the differences.

Reasons to choose

Compare your options

Multiple loan offers tailored to you, subject to lender's affordability assessment.

No impact on credit score

With a soft eligibility check it will not impact your credit score when comparing loans.

Choose your repayment terms

Loan terms from 1 to 30 years, subject to lender's affordability assessment.

Co-op Member Prices

Co-op Members could get exclusive rates on unsecured loans from selected lenders. Discounted rates depend on your circumstances and the eligibility criteria. Secured loans are not included. Members also get:

lower prices in our food stores and online
personalised offers every week
access to presale tickets for Co-op Live, the UK's biggest arena
a say in how Co-op is run

If you’re not yet a Co-op Member, you can sign up using the ‘Become a member’ button. This will include a one-off £1 joining fee.

Become a member

What can I use a home improvement loan for?

You can use a home improvement loan for things like:

decorating
furniture
a new kitchen
a new bathroom
single storey extensions
conservatories
loft extensions

Home improvements made with a loan may not add comparable value to your property.

Application process

How getting loan works with our partner ClearScore:

Eligibility check: fill in the online form and ClearScore will run an eligibility and soft credit check. This will not affect your credit score.
Loan options: if you pass, you will see a list of loans showing how much you could borrow and the costs. If you choose a secured loan a qualified adviser will call to go through your application.
Payment: if you get approved for a loan, the money will be sent directly to your account. For unsecured loans this is normally on the same day you apply. For secured loans this might take several weeks.

What are the pros and cons of home improvement loans?

Benefits of a home improvement loan

a home improvement loan can help you increase your living space
new kitchens, bathrooms and extensions can increase the value of your home
you could borrow the full amount or part of the total for your renovation project
you can choose a repayment term that suits you
after a successful application, the money could be in your account in a couple of days.

Drawbacks of a home improvement loan

if you're getting a secured loan to pay for home improvements, think carefully. Missing payments could mean losing your home.
late or missing payments could damage your credit score
a low or bad credit score can reduce what loans are available to you in the future, and result in higher interest rates.

As with all loans, you will pay back more that you borrow due to interest rates. Make sure you can afford the monthly repayments and are able to pay them on time.

Understanding the full cost of your loan

Representative example for secured loans

Secured loans from Co-op have a representative APRC of 13.24% (variable). For example, borrowing £25,000 over 10 years with a broker fee of £2,875 and a lender fee of £595 means you’ll pay £365.91 each month. The charge for credit would be £18,909.20. In total, you would repay £43,909.20.

Representative example for unsecured loans

Unsecured personal loans from Co-op have a representative APR of 23.8% (fixed). For example, borrowing £7,500 at a fixed annual interest rate of 23.8% over 5 years means you will pay £214.89 each month. In total, you would repay £12,893.40.

Debt advice

Consolidating your debts could help you take control of your money. Depending on the interest rate and how long you take to repay, you could end up paying more in total. Think about the overall cost when making your decision.

If you're getting a secured homeowner loan to pay off unsecured debts, think carefully. It might not be the best choice. Missing payments could mean losing your home. Your home may be repossessed if you do not keep up repayments on your mortgage or any other loan secured on it.

There are many debt management support services and advice lines who can help you for free. Gov.uk has a list of services where you can get help in person, over the phone or online.

They can help you with your finances and spending habits by giving you independent advice on dealing with debt problems and debt management.

Exclusive offers for Co-op Members

Your discount is applied if your details match those on our membership database and isn't available on add ons.

Co-op Members who take out renters insurance will get a 5% discount.

For secured loans Co-op Insurance Services Limited acts as an introducer to Clearscore. We are not the mortgage intermediary or lender. Co-op Insurance receives commission from ClearScore if you take out a secured loan. The amount of commission is a percentage of the overall amount you borrow.

For unsecured loans Co-op Insurance Services Limited acts as a Credit Broker not a Lender. If you take out an unsecured loan or are introduced to a third-party provider, we will receive a fixed percentage commission from Aro.

This will not impact the amount you pay back. Lenders terms and conditions apply. UK residents 18 and over.