Remortgage for Home Improvements

Your Remortgage Options

How Much Can You Release?

The maximum you can release depends on your current property value, your outstanding mortgage balance, your income, and the lender's LTV limits. Most lenders will go up to 80 or 85 percent LTV. As a starting point: if your home is worth 300,000 pounds and your mortgage is 150,000 pounds, you potentially have 90,000 to 105,000 pounds available before income affordability rules are applied.

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Certain improvements genuinely add more value than they cost. Loft conversions, rear extensions, and significant kitchen and bathroom upgrades tend to perform well. This means the equity you use to fund the work may be partly recovered in the increased value of the property. Check with a local estate agent before committing to major work.

Lenders will ask about the purpose of any additional borrowing. Home improvements are a widely accepted purpose for equity release, though some lenders have limits on how much they will lend above the existing mortgage for this purpose. We know which lenders are most flexible and will match you to the right one for your project size.

Planning permission is not required for all projects. Extensions within permitted development limits, internal remodelling, and most kitchen or bathroom upgrades do not need council approval. However, if your project requires planning permission, check that it has been granted before you start the remortgage process, as lenders will want confirmation.

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If your current mortgage deal has not ended and you are still in the early repayment charge window, it is worth calculating whether the improvement cost savings justify switching early. In many cases, waiting a few months until the ERC period ends is the better option. We run this calculation for every client.

We can arrange a remortgage specifically to fund home improvements alongside any other remortgage objectives. If you are also looking to get a better rate at the same time, we address both in one application.

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Because we are fee free on mortgages over £100,000 and whole-of-market, we compare every suitable lender on your behalf. Our job is to find the combination of rate, lender, and loan size that gives you the funds you need at the best available cost.

For most homeowners, a remortgage is the most cost-effective way to fund significant home improvements. We will show you exactly what the new payment would be and what the total cost is over the term before you commit to anything.

Start the remortgage conversation before you instruct builders. Knowing how much you can release and at what cost lets you plan the project properly and avoid a gap between your mortgage completing and the work starting.

Step by Step

What You Will Need

To start the conversation, have the following ready:

Review Your Current Mortgage

A rough idea of your current property value and outstanding mortgage balance

Agreement in Principle

Details of the work you are planning, including rough costs if you have them

Submit Your Application

Planning permission reference if your project requires it

Valuation and Underwriting

Your income details, including payslips, P60, or self-employed accounts

Mortgage Offer Issued

Three months of bank statements

Completion Day

Details of any early repayment charges on your existing mortgage deal

Get in touch for a free conversation. We will work out exactly how much you can release and what it will cost, so you can plan your project with confidence.

3 Tips For Clients Looking To Remortgage and Carry Our Home Improvements

1) Check that your home has risen in valueIf your property’s value has increased since you bought it, then (all else being equal) you can usually remortgage for a higher sum without increasing your monthly payments. If your home hasn’t increased significantly, however, remortgaging may not be cost effective. You’ll also be increasing your LTV ratio, which means that if property prices fall you could find yourself in negative equity. At times of economic uncertainty, you may feel more comfortable having an ‘equity cushion’ to fall back on.

2) Aim to do work that will further increase the value of your home. Extensions are expensive, so look for those that will boost your house price by more than their cost. Increasing the value of your property will help you out significantly long term. An extra bedroom is always a winner, with an ensuite being most highly prized. A big open-plan kitchen-diner or an extra bathroom are also good choices, but extra / larger reception rooms are less profitable. Building upwards (e.g. loft conversions) or using existing space (e.g. garage conversions) are also better than reducing your garden space.

3) Go through a mortgage broker. Your current lender will want to retain you as a customer, but there is nothing to stop you shopping around. A mortgage broker has access to a far wider range of deals, some of which aren’t available on the high street, and if your equity has risen then you may be eligible for better offers than you think.

Remortgage for Home Improvements FAQs

How much equity do I need to remortgage for home improvements?

Most lenders require at least 15 to 25 percent equity remaining in your property after borrowing. For example, if your home is worth £300,000 and you owe £200,000, you have £100,000 of equity. Lenders will typically let you borrow up to 80 or 85 percent of the property value, which means you could potentially release up to £55,000 to £65,000 for home improvements.

Is a remortgage better than a personal loan for home improvements?

For significant home improvement projects, a remortgage usually offers a lower interest rate than an unsecured personal loan because the debt is secured against your property. However, you will be borrowing over a longer term, which increases the total interest paid. Your mortgage adviser will compare both options based on your current deal, any early repayment charges, and your project costs before making a recommendation.

How long does it take to remortgage?

A full remortgage typically takes four to eight weeks from application to completion. If you are arranging a further advance with your existing lender, this can sometimes be faster. The timeline depends on how quickly solicitors can act and whether a new property valuation is required.

Will home improvements increase my property value?

Some improvements add more value than others. Loft conversions, extensions, and kitchen upgrades tend to give the best return. Energy efficiency improvements such as insulation and solar panels are increasingly valued by buyers and lenders. A local estate agent can give you an indication of the likely added value before you commit to borrowing.

Can I remortgage mid-fix to fund renovations?

Remortgaging mid-fix means leaving your current fixed rate early, which usually triggers early repayment charges. These charges can be significant, often between one and five percent of the outstanding balance. In most cases it makes more financial sense to wait until your fixed rate ends. If you need funds sooner, a further advance from your current lender is often a better option as it avoids those charges.

Using Your Equity to Improve Your Home