Quick Links:
Whether you’re planning a new kitchen, an extension or energy-efficient upgrades, home improvements can make your property more enjoyable to live in and, in some cases, increase its value. If you’re considering borrowing to fund improvements, there are several options available, depending on your circumstances. The most suitable solution will depend on factors such as your existing mortgage, the amount of equity you have and a lender’s affordability assessment. In this guide, we’ll explain some of the options homeowners may wish to consider.
Some homeowners may be able to borrow additional funds for home improvements, subject to lender approval.
The amount you can borrow depends on your circumstances, affordability and lender criteria.
Remortgaging isn't the only option for funding improvements.
The amount of equity you have may influence the options available.
It's important to consider the overall cost of borrowing before making a decision.
How HTG Mortgages Can Help
At HTG Mortgages, I work with over 120 lenders across the UK, meaning we have access to a wide range of mortgage products to suit all types of borrowers. Whether you’re a first-time buyer or looking to remortgage, we can help you determine how much you can borrow and find the right mortgage for your circumstances.
We also provide ongoing support, regularly checking your options after your mortgage is secured, ensuring that you never miss out on a lower rate.
Can I Borrow More on My Mortgage?
Possibly. Some homeowners may be able to borrow additional funds against their property to help pay for home improvements. Whether this is possible depends on your equity, affordability, mortgage terms and the lender’s criteria.
What Options Are Available?
Depending on your circumstances, options may include:
- Additional borrowing from your existing lender
- Remortgaging to a new lender
- Using savings
- Other forms of borrowing where appropriate
The most suitable option will vary from person to person.
Will I Need Enough Equity?
In many cases, yes. The amount of equity you have in your property can affect whether additional borrowing is available and the range of mortgage products you may be eligible for.
Speak to an expert
Whether you’re buying your first home, moving house or remortgaging, HTG Mortgages is here to make the process as simple and stress-free as possible. I’ll compare mortgages from over 120 lenders, guide you every step of the way and help you find the right mortgage for your circumstances.
How Do Lenders Decide?
Before approving additional borrowing, lenders typically consider:
- Your income
- Affordability
- Existing financial commitments
- Credit history
- Loan-to-Value (LTV)
- The amount you wish to borrow
Every lender has its own assessment process.
Could Home Improvements Increase My Property’s Value?
Some improvements may increase a property’s value, while others may have little impact. There’s no guarantee that home improvements will increase the value of your home, so it’s sensible to consider the costs and potential benefits carefully.
Should I Remortgage for Home Improvements?
Remortgaging may be an option for some homeowners, particularly when reviewing their mortgage at the end of a fixed-rate product. However, it’s important to consider interest rates, fees and any Early Repayment Charges that may apply before making a decision.
Is Borrowing Always the Right Choice?
Not necessarily. Before increasing your borrowing, it’s worth considering your wider financial circumstances, future plans and whether alternative funding options may be more appropriate.
Should I Speak to a Mortgage Broker?
If you’re considering borrowing for home improvements, a whole-of-market mortgage broker can explain the options available based on your circumstances and help you understand the products different lenders may offer. Any recommendation will always be subject to affordability and lender approval.
Borrowing more to buy a second property works differently from borrowing for home improvements; my guide on remortgaging to buy another property explains how lenders look at it.
Need Personal Mortgage Advice?
Every buyer’s situation is different. While this guide explains the general rules, the right mortgage for you depends on your income, deposit, credit history and future plans. If you’d like tailored advice, I’m here to help, with whole-of-market coverage.
