How to finance home improvements

illustration of How to finance home improvements

Where do you start when it comes to paying for home improvements? Apart from the obvious options such as savings or taking out a personal loan, using the money you already have in your home to put towards renovations can be an effective option. Remortgaging to pay for home improvements is really common, but can be a confusing process.

Our Mortgage Experts have in-depth knowledge of the tricky stuff. They’ve seen it all and have plenty of experience with people who want to remortgage for home improvements. Read our Guide to get the lowdown on remortgaging for home improvements.

Think carefully before securing any other debts against your home. It could be repossessed if you don’t keep up your repayments. 

What is remortgaging?

If you currently have a mortgage, or own your property outright, you can remortgage your home which means getting a new mortgage, either with your existing lender or a new one. Even if your current mortgage has a duration of 30 years or more, you don’t have to stay tied to the same one for that length of time.

Remortgaging is really common and can help you to get a more competitive deal, as well as giving you the opportunity to take some money out of your home. Think of it as a regular re-evaluation of your finances.

How much equity is in your property, its current value and what kind of loan-to-value (LTV) percentage you want will all affect what kind of home improvement remortgage you can get. Working with an experienced, specialist remortgage broker (like us!) is the best way to make things as simple as possible. Get started.

Is remortgaging the right option for me to finance my home improvements?

If you’re looking to finance home improvements, there are other options besides remortgaging, such as personal loans. Whether it’s the right option will depend on how much you’re looking to spend. 

It’s worth looking at the interest rates - you can sometimes get more competitive rates through a remortgage than with a loan, but it’ll be debt secured against your home. It all depends on your individual circumstances, which is why it’s best to get independent financial advice before committing to anything.

Make a quick enquiry and one of our specialists will call you back as soon as possible.

Remortgaging vs a secured loan

If you take out a secured loan, it means you’ll be using your home as the guarantee against the loan, the same as you do with your mortgage. It’s often a simpler application process than with a remortgage, so if you need funds quickly it could be a more attractive option.

When you remortgage, you’ll be arranging a new mortgage deal on your house and removing any equity as a lump sum, which you can use for your home improvements.

The main difference to note between the two choices is that if you remortgage, then all your payments will be to the same lender, which usually means that your repayments will be lower and all kept in one place. The secured loan is another credit agreement to keep on top of.

The right option for financing home improvements

There’s a few different ways you can free up finances to make home improvements. It’s important to make a plan for how much cash you’ll need and when you’ll need it, so you can speak to a specialist and get independent advice on the right option for you. 

We’re available 7 days a week to chat about your options. Make an enquiry to speak to an expert

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