A home improvement loan is often cheaper because of the recognised increase in the value of your home. If you don't own your house, expect a standard loan deal to do the job but at a higher premium than a secured loan. At lower amounts, consider the benefits of payment holidays if you'd like a breather before paying.

Home improvements are one of the most popular reasons for getting a loan and it's usually easy to find a lender to give you the money. There are good reasons for this. They only apply to home owners, and chances are that your redecoration or extra building work will add to the value of the house. Home improvements are likely to cover 50% of their costs across the time they are in place in increased value in the property itself. Pop in a conservatory, swimming pool or extension, and you can usually bet the whole price of any home improvement loan will be covered.

Because of this, as well as a simple loan, some building societies have loans designed specifically for home improvements. If you're paying builders in tranches, you might also take advantage of the products offering a payment holiday, so work can start before you pay anything back.

The other crucial issue with a home improvement loan is whether to go for a loan at all. You could be better off with a remortgage also known as a second mortgage on your house. Shop around for the best deal. Above £10,000 if you have a mortgage it's almost invariable that a second mortgage will be better value than a home improvement loan. However, the remortgage deal will often only be on offer if the requisite home improvements are deemed to be essential to the integrity of the property.