Thinking About Using Your Mortgage to Fund Home Improvements?
We get it—your home is your biggest asset, and you want to make it the best it can be. Whether you’re dreaming of a bigger kitchen, an extra bedroom, or just want to make your place more energy-efficient, home improvements can be a great investment. But let’s be honest, renovations aren’t cheap.
That’s where remortgaging comes in. By tapping into the equity in your home, you could fund those upgrades with better financial terms than a loan or credit card. In this guide, we’ll walk you through how remortgaging works, the benefits, and what you need to consider before making a decision.
What is Remortgaging and How Can It Help Me Upgrade My Home?
Remortgaging simply means switching your current mortgage to a new deal, either with your existing lender or a different one. People do this for all sorts of reasons—getting a better interest rate, lowering monthly repayments, consolidating debts, or, in this case, unlocking extra cash for home improvements.
So, can you release equity from your home for renovations? It depends on how much your property is worth and what’s left on your current mortgage. If you’ve built up equity over time, you may be able to borrow more to fund your upgrades.
How Do I Remortgage for Home Improvements?
1. How Do I Know If I Have Enough Equity?
The first step is figuring out how much equity you have. That’s just your home’s current value minus what you still owe on the mortgage. The more equity, the more you may be able to borrow.
2. How Much Can I Borrow?
Lenders will look at your income, expenses, and credit history to decide how much extra you can borrow. Wondering “Can I remortgage with bad credit for home renovations?” You might still have options, but a specialist lender may be your best bet.
3. How Do I Get the Best Mortgage Deal?
Getting the best rate means shopping around or working with a mortgage broker (like us at Mortgage Bridge!). We’ll help you find low-interest remortgage options so you can keep costs down.
4. What’s the Process Like?
- Apply for a remortgage and get your property valued.
- The lender assesses your affordability.
- If approved, your new mortgage replaces the old one, and the extra funds are released to you.
What Are the Benefits of Remortgaging for Home Improvements?
1. Can I Use My Mortgage to Pay for Renovations?
Yes! This is one of the most common reasons people remortgage. It’s often cheaper than taking out a personal loan or using credit cards.
2. Will I Get a Better Interest Rate?
If market conditions are good, you might snag a lower interest rate, making your borrowing cheaper overall.
3. Can I Spread the Cost Over a Longer Period?
Unlike short-term loans, a remortgage lets you spread the cost of your home improvements over the full term of your mortgage, keeping monthly payments manageable.
4. Which Home Improvements Add the Most Value?
Some renovations have a better return on investment than others. If you’re wondering “What are the best home improvements that add property value?”, then kitchen remodels, loft conversions, and extensions tend to give you the biggest boost.
5. Can I Consolidate Other Debts When I Remortgage?
Yes, you can roll existing debts into your new mortgage, potentially reducing your monthly outgoings.
What Should I Watch Out for Before Remortgaging?
1. Are There Extra Costs Involved?
Keep an eye out for fees like:
- Early repayment charges (if leaving your current mortgage early)
- Arrangement fees
- Valuation fees
- Legal costs
2. Will My Mortgage Payments Go Up?
If you borrow more, your repayments will increase. Wondering “Will my mortgage payments increase if I borrow more for home improvements?” The answer depends on how much extra you take out and the new terms of your mortgage.
3. What if I Need a Longer Mortgage Term?
Extending your mortgage term means lower monthly payments, but it also means paying more interest over time. It’s a trade-off you need to consider carefully.
What Are the Most Popular Home Improvements People Fund Through Remortgaging?
We’ve helped loads of homeowners remortgage to fund projects like:
- Should I remortgage to renovate my kitchen? (Kitchens add serious value!)
- Is a loft conversion worth the investment? (Great for adding space!)
- Can I remortgage to build an extension? (Perfect if you need more room.)
- What energy-efficient upgrades can I finance with my mortgage? (Think solar panels, insulation, and double glazing.)
- Is landscaping a good use of my home’s equity? (If you love your garden, why not?)
Final Thoughts: Is Remortgaging the Right Move for You?
Remortgaging for home improvements can be a smart way to fund upgrades, especially if you can secure a lower interest rate and increase your home’s value in the process. But it’s not a one-size-fits-all solution.
If you’re considering it, you need to weigh up the costs, affordability, and long-term impact on your finances. That’s where we come in—at Mortgage Bridge, we can guide you through the process, compare deals, and help you make the best decision.
Want to chat about your options? Get in touch with us today, and let’s see how we can help!