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Appointed Representative of The Right Mortgage Network (FCA No. 1004260). Company No. 15189091. Registered in England and Wales.
Mortgages · Investment and borrowing
Borrowing for Home Improvements
“Your home has potential. Let’s unlock it.”
If you’re planning a renovation, extension, or major improvement, a further advance or remortgage could be more cost effective than a personal loan, particularly if your property has gone up in value.
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Quick answer
You can fund home improvements by borrowing more against your home, through a further advance from your current lender, a remortgage to a new lender, or a second charge loan. Rates are usually lower than unsecured loans because the borrowing is secured. The main thing to know is that it increases your total debt, and your home is at risk if repayments aren’t kept up.
Equity needed
Borrowing usually up to 85% to 90% LTV
How lenders assess you
Income, outgoings and the new loan size
When to start
Once you have quotes for the work
Main thing to watch
Total interest over the term
How borrowing for improvements works
A further advance adds a new loan with your current lender, often at a separate rate and on a separate product.
A remortgage replaces your mortgage with a bigger one from a new lender, which can be cheaper if your current deal is ending.
A second charge loan sits alongside your existing mortgage, useful when you want to keep a low rate you already have.
Funding different projects
Extensions and loft conversions often add value, and lenders may ask for plans and builder quotes.
Large projects may need staged funding or specialist lenders. Cosmetic updates are usually straightforward.
Eligibility and what lenders assess
Who may qualify
Homeowners with equity who want to improve the property they live in.
Equity and LTV
Most lenders cap total borrowing around 85% to 90%.
Income and affordability
Reassessed for the total new borrowing.
Credit history
Recent missed payments limit options.
Property requirements
Planning or building control may be needed for major works.
Common reasons for decline
Insufficient equity, or unclear purpose for the funds.
What happens from first call to completion
1
Review your circumstances
A proper conversation about your income, commitments, plans and timescales before anything else.
2
Check affordability and criteria
We check what lenders will realistically offer and whose criteria you fit, before any credit search.
3
Compare suitable options
We compare the market on total cost, not just the headline rate, and explain the trade offs.
4
Prepare and submit the application
We package your documents so the underwriter has what they need first time.
5
Manage valuation and underwriting
We chase the lender, valuer and solicitor and deal with any questions that come up.
6
Receive your offer and complete
Once the offer is issued we keep things moving through to completion day.
Costs, risks and when it may not be suitable
Being upfront about this is part of doing it properly.
Costs to budget for
- Product and arrangement fees
- Valuation and legal costs
- Early repayment charges if you leave a deal early
- The total cost of borrowing over the full term, not just the initial rate
- A longer term lowers monthly payments but increases the total interest you pay
Risks to weigh up
- Unsecured debt becomes secured against your home
- Works that overrun can leave you short of funds
- Your home may be repossessed if you do not keep up repayments on your mortgage
When it may not be suitable
- For small projects, an unsecured loan paid off quickly can cost less overall
- If you’re near the end of a fixed deal, waiting to remortgage may be cheaper than a further advance now
What you will need
The exact list depends on your lender, but this is what to start gathering.
Photo ID and proof of address
Bank statements (usually 3 months)
Details of credit commitments
Existing mortgage statement
Builder quotes
Planning information if relevant
Payslips or accounts
How MBNM helps
- Assess your circumstances properly, not just your salary
- Compare suitable lenders and products across the whole market
- Check criteria before an application goes anywhere near a lender
- Explain the total costs and trade offs in plain English
- Manage the application and chase the people who need chasing
- Support you all the way through to completion
What it costs
Your first chat is free. If we can help, we will explain any fees before you decide whether to proceed. There are no hidden fees, and we will not move forward until you have agreed them.
Home Improvement Borrowing FAQs
Further advance or remortgage?
How much can I borrow?
Will the improvements add value?
Do lenders need quotes?
What is a second charge loan?
Is it cheaper than a personal loan?
Planning some work?
Tell us the project and budget and we’ll show you the cheapest way to fund it.
Your first conversation is free and there's no obligation. If we can help, we'll explain any fees before you decide whether to go ahead.
Your home may be repossessed if you do not keep up repayments on your mortgage.