Will you need a home improvement loan in 2022?

home improvement

January and February are often busy months as far as demand for home improvement loans is concerned.

At the start of a new year, many investors, homeowners and landlords often have a renewed energy for sprucing up their properties. This might be as simple as a lick of paint. But it might include plans to:

  • Renovate
  • Extend
  • Fully refurbish
  • Covert a room or the function of the asset.

This trend has also become more prominent during the pandemic. Lockdowns and the rise of remote working have changed what people want and need from their home. Owners have, therefore, invested in making a range of improvements.

It was estimated that the majority of Britons (59%) were going to make home improvements in 2021. On average, they would spend at £6,531. Another study showed that the most popular works right now are redecorating, purchasing new furnishings, creating a home office, and adding a home gym.

Sources: Attic Self Storage (via DIY Week) and GoodMove (via Professional Builder Magazine)

Why make home improvements?

For buy-to-let investors, making improvements to their properties can have several benefits

  1. Firstly, regular maintenance and cosmetic changes can ensure a house or flat remains in great condition.
  2. Secondly, by keeping their properties up to date with current trends, such as the demand for home offices, they will ensure more interest from renters. They can also price the rent for their properties more competitively if they meet higher standards.
  3. Thirdly, the value of the property will similarly increase if the right improvements are made. It is widely claimed that a new kitchen, for example, can add around 10% onto the value of a property. More significant works, such as a loft conversion or extension, will likely have an even greater impact.

New EPC rules

There is a fourth reason many landlords will be seeking loans for home improvements this year. New rules are coming into effect for EPC ratings of rental properties.

All residential properties in the UK have an EPC rating, or energy performance certificate. Put simply, it shows how energy efficient a property is. The ratings range from A, the best, to G, the worst.

Currently, all buy-to-let properties in England and Wales must have an EPC rating of E or above. From 2025, this will change to D. Any property with an EPC rating of E, F or G will not be allowed to be let to tenants – it is estimated that a third of buy-to-let homes would fall into this bracket.

Source: This Is Money

Millions of landlords will need to act. This could be installing:

  • New windows
  • New boilers
  • Loft insulation
  • Draught proofing

They will have to invest into refurbishing or renovating their properties. For many, they will require fast bridging loans to finance the work. Looking for energy efficacy insulation? Find out what our top 5 source suggestions are.

Financing refurbishments

Landlords requiring capital to undertake improvements to one or more of their properties must consider their options carefully. Specialist lending solutions, such as bridging loans, are one such option. One of the reasons bridging loans are attractive to landlords is the speed at which they can be delivered. MFS can issue a loan in as little as three days.

Read some of our permitted & light development case studies to find out more about how we can help.

If a buy-to-let investor has a small window to carry out works between two sets of tenants, they cannot afford a delay in making property refurbishments. Fast short-term loans could help, so long as they have a clear plan for how and when to repay the loan.

It is common that property investors will renovate or refurbish a property prior to selling it to boost the value. In which case, a bridging loan for home improvements can provide the finances to complete the work. The loan can then be repaid upon the sale of the spruced-up property.

We have a range of products that can help. Importantly, we are experienced in refurbishment loans. We will work alongside both brokers or directly with the owner to deliver the right loan for their situation and the works they wish to carry out.

So, if you are thinking about home improvements in 2022, get in touch with MFS today.


MFS are a bridging loan and buy-to-let mortgage provider, not financial advisors. Therefore, Investors are encouraged to seek professional advice.

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