Remortgage for Home Improvements: Fund Renovations Without Moving

A remortgage for home improvements may help you raise money for renovations, repairs or an extension.

Instead of moving home, some homeowners choose to improve the property they already own. This may include a new kitchen, bathroom, loft conversion, garden room, extension or energy efficiency work.

However, borrowing more through your mortgage is a serious decision. It increases the debt secured against your home and may increase your monthly payments.

Your home may be repossessed if you do not keep up repayments on your mortgage or any loan secured on it.

Remortgage for Home Improvements

A remortgage for home improvements means switching your mortgage and borrowing extra money to fund work on your home.

It may be suitable if you have enough equity, can afford the larger mortgage, and want to compare your current deal with other options.

Before you apply, check:

• How much equity you have in your home
• Whether your current mortgage has early repayment charges
• Whether a product transfer, further advance or second charge mortgage may work better
• How the extra borrowing affects monthly payments
• Whether the improvement supports your long-term plans
• Whether the total cost over the full mortgage term is acceptable

You can also start with our Remortgage page or use our Mortgage Calculators before speaking to an adviser.

What Is a Remortgage for Home Improvements?

A remortgage usually means replacing your current mortgage with a new deal. This may be with a new lender or, in some cases, through a new arrangement linked to your existing lender.

When you remortgage for home improvements, you may ask to borrow more than your current mortgage balance. The extra money can then be used for planned work on your home.

MoneyHelper explains that a remortgage is when you get a new mortgage with a different lender while staying in your current home. It also notes that switching may involve fees.

This matters because remortgaging is not just about raising money. It is also about checking the rate, term, fees, affordability and long-term cost.

Why Homeowners Remortgage for Home Improvements

Homeowners may consider remortgaging for home improvements when their current property no longer fits their needs.

Common reasons include:

• Creating more living space
• Adding a bedroom or home office
• Updating a kitchen or bathroom
• Improving insulation or energy efficiency
• Repairing structural or maintenance issues
• Adapting the property for family needs
• Improving layout before a future sale
• Avoiding the cost and disruption of moving

A remortgage may help fund larger projects where savings or short-term borrowing are not suitable. However, the extra borrowing is secured against your home.

What Types of Home Improvements Can a Remortgage Fund?

A remortgage for home improvements may be used for many property-related projects.

Examples include:

• Kitchen refurbishment
• Bathroom replacement
• Loft conversion
• Garage conversion
• Rear or side extension
• Roof repairs
• Windows and doors
• Central heating upgrades
• Solar panels
• Insulation
• Accessibility adaptations
• Garden rooms
• Structural repairs

Lenders will usually want to know why you are borrowing more. They may also consider whether the project is reasonable for the property, loan size and your financial position.

How Much Can You Borrow?

The amount you may be able to borrow depends on your circumstances and lender criteria.

Lenders may look at:

• Your income
• Your regular spending
• Your current mortgage balance
• Your property value
• Your equity
• Your credit profile
• Your age and mortgage term
• Your existing debts
• The cost of the planned work
• The purpose of the extra borrowing

Equity is important. If your home is worth more than your current mortgage balance, you may have equity that could support additional borrowing.

For example, if your home is worth £350,000 and your mortgage balance is £220,000, the difference is £130,000. This does not mean you can borrow all of it. Lenders still assess affordability and loan-to-value.

You can check estimated repayments with our Quick Mortgage Calculator or review your borrowing with our Residential Affordability Calculator.

Remortgage, Further Advance or Second Charge Mortgage?

A remortgage is not the only way to raise money for home improvements.

You may also need to compare other routes.

Remortgage

A remortgage may be suitable if your current deal is ending, your rate is no longer competitive, or another lender may offer more suitable terms.

It can combine your main mortgage and any additional borrowing into a single new mortgage. However, fees, legal work, valuation checks and early repayment charges may apply.

Learn more on our Remortgage page.

Product Transfer

A product transfer usually means switching to a new deal with your current lender. It may be simpler than moving to a new lender.

However, it may not always allow extra borrowing. It may also offer fewer options than a full market review.

Further Advance

A further advance means borrowing more from your existing mortgage lender. This may help if you want to keep your current mortgage deal.

However, the further borrowing may sit on a different rate and term. That can make the total cost harder to compare.

Second Charge Mortgage

A second charge mortgage is a separate loan secured against your property. It sits behind your main mortgage.

This may be considered if you want to keep your current mortgage deal, avoid early repayment charges, or raise funds without replacing your main mortgage.

Read more on our Second Mortgage page.

When Remortgaging for Home Improvements May Make Sense

Remortgaging for home improvements may be worth reviewing if:

• Your current mortgage deal is ending soon
• You have enough equity in your home
• You can afford the higher mortgage payments
• The project is planned and costed
• The work supports your long-term housing needs
• You want to compare lenders before borrowing more
• You want one mortgage instead of separate borrowing

A remortgage should be assessed against your full financial position. A lower monthly payment does not always mean a lower total cost.

When It May Not Be the Right Route

A remortgage for home improvements may not be suitable if:

• Your current mortgage has high early repayment charges
• You have limited equity
• Your income has reduced
• Your credit profile has changed
• The project cost is uncertain
• You may move home soon
• A personal loan or savings may be more suitable
• The new mortgage term increases the total interest paid

This is why advice can be helpful before you apply. The right option depends on the mortgage you already have, the work you want to complete and how long you plan to stay in the property.

Costs to Check Before You Remortgage

Before remortgaging for home improvements, check the full cost.

Important costs may include:

• Early repayment charges
• Exit fees from your current lender
• Arrangement fees
• Valuation fees
• Legal fees
• Broker fees
• Higher monthly repayments
• Interest over the full mortgage term
• Building work contingency costs

You should also check whether your planned project needs planning permission, building regulation approval or specialist reports.

Home Improvements and Property Value

Some improvements may support a property’s value. Others may mainly improve comfort, layout or lifestyle.

Projects that may appeal to future buyers often include:

• Extra bedrooms
• Improved kitchens
• Modern bathrooms
• Better energy efficiency
• More usable living space
• Improved layout
• Stronger kerb appeal

However, no renovation guarantees a higher sale price. Local demand, property type, finish quality and market conditions all matter.

Before committing to a large project, you may wish to speak with a local estate agent, builder or surveyor. This can help you understand whether the work is realistic for the property and area.

Energy Efficiency Improvements

Some homeowners remortgage to fund energy efficiency improvements.

These may include:

• Loft insulation
• Wall insulation
• Double or triple glazing
• Solar panels
• Heating upgrades
• Heat pumps
• Draught proofing

Energy improvements may reduce running costs, but results vary by property and usage. You should check the installation cost, payback period and whether the work is suitable for your home.

Documents You May Need

Before speaking to an adviser, it can help to prepare:

• Your latest mortgage statement
• Your current mortgage balance
• Your current interest rate
• Your deal end date
• Any early repayment charge details
• Your estimated property value
• Your income details
• Your monthly commitments
• Your credit commitments
• Your planned project cost
• Builder quotes, where available
• Planning or building details, if relevant

The more accurate your figures are, the easier it is to compare options.

How Connect Mortgages Can Help

Connect Mortgages can help you review whether a remortgage for home improvements may be suitable.

An adviser can help you understand:

• Whether remortgaging is possible
• How much you may be able to borrow
• Whether your current lender has options
• Whether another lender may be more suitable
• How fees and charges affect the decision
• Whether a second charge mortgage should be reviewed
• How the new mortgage may affect monthly payments
• What documents may be needed before applying

You can also read our Residential Mortgage page if the property is your main home.

Find a Remortgage Adviser

If you want to compare advisers before making contact, Connect Experts can help you search by location, language and mortgage specialism.

You can use Remortgage Mortgage Brokers to find advisers who may help with remortgage reviews.

You can also search more widely through Find a Mortgage Adviser Near You.

Before You Apply

Before applying for a remortgage for home improvements, ask yourself:

• Do I know the full project cost?
• Have I allowed for delays or overspending?
• Do I understand the new monthly payment?
• Will the mortgage term increase?
• Are there early repayment charges?
• Have I compared a remortgage with a further advance?
• Have I considered a second charge mortgage?
• Is the borrowing affordable if my income changes?
• Does the work support my long-term plans?

A remortgage can be useful, but it should be chosen for the right reason.

Speak to Connect Mortgages

Planning home improvements and want to review your mortgage options?

Speak to Connect Mortgages about remortgaging, further borrowing and other secured borrowing routes.

We can help you understand your options before you decide whether to apply.

FAQs: Remortgage for Home Improvements

Can I remortgage for home improvements?

Yes, you may be able to remortgage for home improvements if you have enough equity and can meet lender affordability checks. The lender will review your income, commitments, property value, mortgage balance and reason for borrowing.

Is remortgaging for home improvements the same as equity release?

No. A standard remortgage for home improvements is different from later-life equity release. A remortgage replaces or changes your mortgage deal. Equity release usually refers to specialist later-life lending.

Will remortgaging increase my mortgage payments?

It can. Borrowing more may increase your monthly payments, extend the mortgage term or increase the total interest paid. This depends on the rate, term, fees and amount borrowed.

Do lenders accept home improvements as a reason for borrowing more?

Many lenders may consider home improvements as a reason for additional borrowing. However, approval depends on lender criteria, affordability, equity and your credit profile.

Should I use a remortgage or a further advance?

That depends on your current mortgage, fees, rate, lender options and borrowing needs. A further advance keeps you with your current lender. A remortgage may allow you to compare other lenders.

What if my current mortgage has early repayment charges?

If your current mortgage has early repayment charges, remortgaging early may be costly. A product transfer, further advance or second charge mortgage may need to be compared.

Can I remortgage for an extension?

You may be able to remortgage for an extension if the borrowing is affordable and the lender accepts the purpose. You should check planning, building regulation and project costs before applying.

Can I remortgage for a new kitchen or bathroom?

Yes, some homeowners remortgage to fund kitchens, bathrooms and other home improvements. The lender will still check affordability, equity and the total mortgage position.

Is a second charge mortgage better than remortgaging?

A second charge mortgage may be considered if you want to keep your current mortgage deal. It is a separate loan secured against your home. It may not be suitable for everyone, so advice is important.

What should I do before applying?

Check your current mortgage balance, property value, deal end date, early repayment charges, income, credit commitments and project costs. Then compare the available routes before choosing.