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Appointed Representative of The Right Mortgage Network (FCA No. 1004260). Company No. 15189091. Registered in England and Wales.
Residential
"Your home has potential. Let's unlock it."
If you're planning a renovation, extension, or major improvement, a further advance or remortgage to raise funds could be more cost-effective than a personal loan — particularly if your property has increased in value.
How can you fund home improvements through your mortgage?
There are two main ways to use your mortgage to fund home improvements. A further advance means borrowing additional money from your existing lender, secured against your home. A remortgage to raise capital means switching to a new lender and borrowing more than your outstanding balance — releasing equity for the works.
Both options typically offer lower interest rates than unsecured personal loans, because the borrowing is secured against the property. However, you'll be increasing your total debt, and it's important to make sure the monthly payments remain affordable.
The viability of both options depends on your current loan-to-value (LTV) ratio. If your property has increased in value since you bought it, you may have built up significant equity that can be released.
Who is this for?
- You're planning a significant home renovation or extension
- You want to fund improvements at a lower rate than a personal loan
- Your property has increased in value and you have equity to release
- You want to understand the most cost-effective way to fund the works
Key points
- A further advance is from your existing lender — often quickest
- A remortgage can access better rates and more equity
- Both require a new affordability assessment
- Adding to your mortgage increases the total interest paid over the term
Common questions
Things people ask us
Is it better to use a further advance or remortgage?
How much can I borrow?
Will the improvements add value?
Ready to get started?
Book a free, no-obligation appointment.
Straight advice, no jargon.
Straight advice, no jargon.
Also Consider
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Home Improvement Loans
If you're planning a renovation, extension, or major improvement, a further advance or remortgage to raise funds could be more cost-effective than a personal loan — particularly if your property has increased in value.
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If you're moving home and still in the middle of a fixed rate deal, you may be able to port your existing mortgage to your new property — keeping your current rate and avoiding early repayment charges.
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