Making changes to your home can be one of the most exciting projects you ever undertake. Whether you're looking to add extra space for a growing family or simply want to create your dream kitchen, remortgaging is a popular and cost-effective way to fund your home improvements. By releasing the equity you’ve built up, you can unlock the funds needed to turn your vision into reality.
Why choose remortgaging for home improvements?
While there are many ways to borrow money, remortgaging to fund your home improvements can be a much cheaper option than other forms of lending, such as personal loans or credit cards. Since a mortgage is a loan secured against your property, lenders can offer much lower interest rates and a longer repayment term, making monthly payments more manageable.
Getting your project off the ground: A checklist
Once you have decided on the changes you want to make, the first step is to accurately work out the proposed cost. This will ensure you borrow the correct amount and avoid running into financial trouble mid-project.
- Architect's plans and services: For major projects like extensions, an architect will be essential for drawing up plans and managing the process.
- Planning permission: Depending on the scale of your improvements, you may need to apply for planning permission from your local council. This can incur a fee and should be factored into your timeline.
- The cost of builders & contractors: Get multiple quotes for any work you plan to have done. Ensure the quotes are detailed and account for all labour costs.
- Materials: From bricks to paint and new appliances, you will need to budget for all the materials required.
- Building regulation inspections: For structural work, you will need to have a building control inspector sign-off on key stages of the project to ensure everything is compliant and safe.
- VAT: Be aware that VAT is often added to the cost of labour and materials.
- Contingency fund: It's always a good idea to have a contingency fund of at least 10–15% of your total budget. This will provide a buffer against any unexpected costs or delays.
What improvements can you fund?
The most common reason homeowners release equity for renovations is to make improvements that will add significant value to their property. While a fresh coat of paint will boost kerb appeal, projects that create more usable space and modernise a home are the most popular.
- Extensions & conservatories: Adding a new living area or bedroom can dramatically increase the value of your home.
- Loft or garage conversions: Converting unused space is a cost-effective way to add a new room without the expense and disruption of a full extension.
- New kitchens & bathrooms: A modern, well-designed kitchen or bathroom is often at the top of a potential buyer's wish list.
- General renovations: This could include new roofing, windows, and doors to improve energy efficiency or landscaping the garden to create a more desirable outdoor space.
We can help you plan for your project
Deciding to remortgage for home improvements is a big step, but it's a decision that could greatly benefit you both financially and in terms of quality of life. As expert mortgage brokers, we can help you with the following:
- Calculating your affordability: We will assess how much you can realistically borrow for your project while ensuring your new mortgage repayments are comfortably affordable.
- Finding the right lender: We can search the market to find a lender whose criteria matches your project's scope and who offers the most competitive rates.
- Structuring your loan: We will help you understand how your new mortgage will work and ensure you are happy with the terms and repayment schedule.
Book your free initial consultation to discuss your project and discover how we can help you make it a reality.