Financing a loft conversion requires choosing the right option for your budget and goals. By selecting the best financing method, you can manage costs effectively and boost your home's value.
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Loft conversion finance is a way of borrowing money to fund the cost of your loft conversion instead of paying for the entire project upfront. It allows homeowners to spread the cost over monthly repayments, making a large home improvement more manageable and allowing work to start sooner.
Most homeowners use loft conversion finance when:
Loft conversion finance can be used to cover the full cost of the project or to top up your budget for more expensive additions, such as an en suite, a bespoke staircase, or a larger dormer. It works in the same way as other home improvement loans, with fixed interest rates, set terms and clear repayment plans.
By spreading payments, homeowners can move ahead with their loft conversion, increase their living space and add value to their property without delaying the project for years while saving.
Here's a quick menu to find out more in this guide on what funding options are available, how to apply for them and a calculator to understand the repayments on your preferred finance option.
Financing your loft conversion doesn’t have to be complicated. Whether you’ve been saving for years or need extra help, there’s an option that fits your situation. Let’s explore the most popular ways to fund your project.
If you’ve built up some savings, using them for your loft conversion can be the simplest and most stress-free choice. It’s a great option to avoid loans and the extra costs that come with them.
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A personal loan can help if you don’t have enough savings but want a straightforward way to spread the cost of your loft conversion. It’s quick to arrange and doesn’t require risking your home.
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If your loft conversion requires a bigger budget, a secured loan might be the way to go. Using your property as collateral allows you to borrow more at a lower interest rate, but it’s important to weigh the risks.
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Remortgaging lets you unlock the equity in your home to fund your loft conversion. It’s a popular choice for large projects, often offering better interest rates than standalone loans.
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A further advance allows you to borrow extra funds from your current mortgage lender. It’s a straightforward option that avoids the need to switch providers.
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Home improvement loans are designed specifically for projects like loft conversions. They’re a flexible option that lets you work without remortgaging or securing your home.
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If your loft conversion is on the smaller side, or you just need extra funding, a credit card is a handy solution. Look out for cards offering 0% interest to keep costs manageable.
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The cost of financing a loft conversion depends on two things: the total price of the build and the type of finance you use. Most loft conversions in the UK cost between £25,000 and £65,000, with larger dormers and hip to gable projects often reaching £70,000+. Your monthly repayments will depend on how much you borrow, the interest rate, and the length of the loan or mortgage.
Personal loans tend to have higher interest rates but shorter terms, which means higher monthly payments and a lower overall cost. Remortgaging or secured loans usually offer lower rates and longer terms, but you may pay more interest over time.
Always check the full amount repayable, not just the monthly figure, before you commit. If you want a clearer idea of your project’s cost before exploring finance, use our loft conversion cost calculator for an instant estimate. You can also read our detailed loft conversion costs guide to understand typical ranges, build types and factors that influence price. These will help you set a realistic budget and choose the right finance option for your home.
Yes, many homeowners choose to finance their loft conversion and spread the cost through monthly payments. You can do this through a personal loan, a secured home improvement loan, or by remortgaging to release equity. Each option lets you borrow the amount you need and repay it over a set term, usually between 3 and 25 years, depending on the lender and product.
Monthly repayments will vary based on your credit score, interest rate and loan length, so always compare offers and check the total amount repayable before you commit.
Our calculator is designed to help you plan your loft conversion with confidence. Factoring in the loan amount, interest rate, and repayment term provides an accurate estimate of your monthly payments. It’s a simple tool to give you clarity on costs, so you can make informed decisions and focus on bringing your loft conversion plans to life.
Getting finance for a loft conversion is not complicated, but lenders do expect clear figures, the right documents and a realistic understanding of the project. The steps below guide you through the process, keeping everything simple and avoiding delays.
Before you apply for any type of finance, you need a solid idea of what your loft conversion will cost. Ask for a detailed written quote from a builder or loft specialist that includes structural work, insulation, plumbing, electrics and finishing. Add a small contingency on top, as most projects uncover at least one unexpected cost.
Once you have a realistic total, you will know whether savings are enough or if you need a loan, remortgage, or other finance product.
Your credit score influences how much you can borrow and the rate you are offered. It is worth checking it early with a free credit service. If there are mistakes, correct them before applying. Lenders usually ask for proof of income, bank statements, ID, and your builder’s quote. Some may want details of existing debts or your current mortgage. Having this ready makes the application smoother.
Different households take different routes. Some prefer a straightforward personal loan. Others access larger sums by remortgaging or using a secured loan. A few look at specialist home improvement finance.
The key is to compare interest rates, repayment terms, arrangement fees and any early-repayment rules. A lower monthly payment might look attractive, but the total cost over the full term can sometimes be much higher. Take your time here, as the small differences add up.
An agreement in principle (AIP) gives you a quick indication of what a lender is willing to offer. It helps you plan realistically and avoids wasting time applying for products that you will not be accepted for. An AIP is not a commitment, so you can use it to compare several lenders before deciding which one suits you best.
Once you have chosen a lender, submit your full application and documents. Some lenders make decisions instantly, while others conduct a hard credit check and review your paperwork manually.
If they need more details about your project, they may ask for an updated quote or a cost breakdown. When approved, they will send you a formal loan offer.
Before signing anything, read the offer in full. Look at the interest rate, the total amount repayable, any fees, and whether the rate is fixed or variable. Check if overpayments are allowed without penalties.
If you are borrowing a large sum through a remortgage or secured loan, consider taking independent financial advice before you commit. Once funds are released, changes can be expensive.
When the loan is in place, set up direct debits to avoid missed payments. Keep an eye on your spending during the build, especially if the loan only covers the main structure and you are funding finishes separately. Good budgeting throughout the project keeps stress low and helps you complete the conversion without stretching your finances too far.
Financing a loft conversion is a big decision, so it’s important to weigh your options carefully. From choosing the right loan to planning for the future, these key points will help you make an informed choice that aligns with your budget and goals.
Interest rates can have a big impact on the total cost of your loan. Take time to compare rates from different lenders, as even a small difference can save you thousands.
Fixed rates give you consistent monthly payments, while variable rates might start lower but could change over time. Choose what works best for your financial situation.
Look closely at how long you’ll be repaying your loan and how much the monthly payments will be. Longer terms mean smaller monthly payments but more interest over time. Shorter terms cost less overall but come with higher monthly payments, so make sure your choice fits your budget.
Your credit score plays a big role in securing the best loan terms. A higher score means lower interest rates and better options. If your score needs improvement, take steps like paying off debts, reducing credit usage, and making timely payments before applying.
If you’re considering a secured loan or remortgage, the equity in your home is key. The more equity you have, the better terms and borrowing limits you’ll likely get. Knowing your property’s value and mortgage balance will help you assess your options.
It’s essential to be realistic about your ability to make repayments. Look at your income, monthly expenses, and any other financial obligations.
Plan for potential changes, like increased bills or reduced income, to avoid financial stress later.
Speaking to a financial adviser or mortgage broker can save you time and money. They’ll guide you through your options, explain complex products, and help you find the best deal for your circumstances.
A compliant loft conversion is essential.
Before starting, ensure you’ve secured all necessary planning permissions and building regulation approvals. Ignoring these requirements can lead to costly delays or modifications down the line.
Know your numbers. Add up the project's total cost, including materials, labour, and any extras. Build a realistic budget and set aside a 10–15% contingency fund for unexpected expenses. Sticking to your budget can save you stress and money.
For an accurate cost, please use our loft conversion cost calculator for an instant price. If you are in the investigation stages, our loft conversion cost guide will be able to help you understand current costs.
A well-planned loft conversion can significantly boost your home’s market value by up to 20%. This increase can make financing the project feel more worthwhile and may help you secure better loan terms.
Always consider the potential return on your investment when planning.
When looking to finance your loft conversion, plenty of questions arise. Here our experts have collated the most common questions we receive. These answers are written to advise and educate - to help you evaluate your situation and make an informed decision.
Yes, many lenders offer personal or secured loans specifically for home improvement projects like loft conversions. These loans often come with flexible repayment terms tailored to your needs.
The best option depends on your circumstances. Savings are ideal if you want to avoid debt, while secured loans or remortgaging are better for larger budgets. Always consider interest rates, repayment terms, and risks before deciding.
Some builders and lenders offer finance plans, allowing you to pay in instalments. These options spread the cost, but make sure you understand the terms, including any interest rates, before committing.
Yes, financing adds initial costs, but a well-designed loft conversion can increase your property’s value by up to 20%, often offsetting the investment.
Approval times vary by lender. Personal loans can be approved in a day or two, while secured loans, remortgages, or further advances may take several weeks. Start the process early to avoid delays.
Government grants or schemes may apply if your loft conversion includes energy-efficient upgrades, such as solar panels or advanced insulation. Check local and national schemes for eligibility.
Taking out a loan or remortgaging will add to your monthly outgoings. Calculate these costs in advance to ensure they fit comfortably within your budget.
