If your home needs significant upgrades, your budget might fall short of cash. Taking out home improvement loans could come in handy, but with an existing mortgage, it becomes difficult to take on a new loan. However, if your house has built up some equity, you can use it to borrow additional money. For instance, if your house is worth €150,000 and your current outstanding mortgage is €100,000, the equity you have built in your mortgage is €50,000.  

Equity is generally preferred when you need a large amount of money for home refurbishment. Your options for large loans are limited without equity, but unsecured loans can be used when you need a small amount of money. However, it depends on the lender how much money they would be willing to lend you without collateral.  

Some lenders might offer you up to €10,000, while others might cap it at €5,000. However, if you borrow a large sum of money, it is enjoined that you secure it as this will help you secure lower interest rates.  

Ways to qualify for a home improvement loan without equity 

Even if you are looking for home improvement loans with bad credit, you can pull off a home improvement loan deal. Here are some options you can consider. Each of them has its own merits and demerits: 

Personal loans are unsecured loans. They are suitable for small to medium projects. You can obtain them without the need for equity. They come with fixed interest rates, which means monthly instalments will remain predictable. You can easily budget around payments. Lenders may take one or two days to complete the process.  

Getting qualified for a personal loan is not a cinch. You must meet the following conditions: 

Carefully scrutinise your repayments, as these loans are quite expensive.  

For a small sum of money, you do not need home improvement loans. For instance, minor refurbishment projects can be funded through credit cards. Depending on the credit limit your card offers, you can use it for minor renovations.  

Credit cards are a better choice than unsecured loans because you can get money instantly. If you have an interest-free card, you do not have to pay interest provided you discharge the credit card debt in one fell swoop within the grace period.  

Credit cards are suitable for emergency and minor repairs. Do not use them if you are not certain about your repayment capacity.  

There are some money lenders in Ireland who specifically lend money to those who need personal loans for home improvements. They also accept applications from subprime borrowers. You might be able to qualify for competitive interest rates.  

Specialised home improvement loans are suitable for small and medium-sized projects. Although these loans could be better than others, you are still advised to take note of your repayment capacity carefully.  

Merits and demerits of non-equity loans 

Here are the pros and cons of the aforementioned non-equity loans: