Suppose, you are about to make your life time investment in improving your home and you need a big loan amount for this purpose. What will you do? Obviously, no lender will provide you a loan of about £50,000 without any security. A lender needs a guarantee and backup for any adverse situation that might develop in the near future. The only way is to pledge your home and get the required loan amount.

A home is not just any building you live in. It has got certain emotional value as well. After all, you spend a big portion of your life in your home. It has to be a worth it. A beautifully designed façade, elegant baths and splendid bedrooms – all add to the value of your home. But, if your home is decades older and in worn out condition then you need to do something to set it right.

Secured loans help you in many cases. Home improvement is surely one amongst them. As a homeowner, you can get secured personal loans at very low rates – starting from 6.5 per cent APR. There are many factors responsible to make interest rates go higher than this. Your credit score, amount of loan required, repayment duration sought, repayment capability, monthly income, etc., all have a definite bearing on the interest rate being offered to you.

There is also a concept of loan-to-value (LTV) ratio. The lenders do not offer more than 125 per cent LTV. Even that much LTV is not a regular feature in the UK loan market. Many lenders restrict the loan up to 75 per cent of your home’s equity. With market value of an average UK home going past £200,000, the secured loans can get homeowners a big loan amount. Lenders provide up to £250,000 in the form of secured personal loans.