If you’ve been looking around your home thinking…
“We could really do with a new kitchen”
“An extension would give us so much more space”
- you’re not alone.
Home improvements are one of the most common reasons people consider remortgaging their property. And the good news is… yes, in many cases, you can raise funds for home improvements when you remortgage.
But (as with most things mortgage-related), there are a few important things to understand first.
Let’s break it down in a simple, no-jargon way.
What Does It Mean to Remortgage for Home Improvements?
Remortgaging simply means switching your current mortgage to a new deal – either with your existing lender or a new one.
When people talk about remortgaging for home improvements, they’re usually referring to borrowing additional money on top of their existing mortgage.
This is often called ‘releasing equity’.
What is equity?
Equity is the difference between:
- What your home is worth
- What you still owe on your mortgage
For example:
If your home is worth £300,000 and your mortgage balance is £200,000, you have £100,000 in equity.
A lender may allow you to borrow some of that equity to fund improvements.
What Home Improvements Can You Fund?
Most lenders are open to lending for a wide range of improvements, including:
- New kitchens or bathrooms
- Extensions or loft conversions
- Structural work or renovations
- Energy-efficient upgrades (like insulation or windows)
- General refurbishments
Some improvements can even increase the value of your home – which may strengthen your position when remortgaging.
How Much Can You Borrow?
This depends on a few key factors:
- Your Available Equity
The more equity you have, the more flexibility you may have to borrow.
- Your Income and Affordability
Lenders will assess whether you can comfortably afford the new, higher monthly repayments.
- Loan to Value (LTV)
This is the percentage of your property’s value that you’re borrowing.
For example:
- Borrowing £240,000 on a £300,000 home = 80% LTV
Generally, the lower your LTV, the more options you may have available.
Is Remortgaging the Right Way to Fund Improvements?
Remortgaging can be a great option – but it’s not always the right one for everyone.
Why people choose to remortgage:
✔️ Interest rates on mortgages are often lower than other types of borrowing
✔️ You can spread the cost over a longer period
✔️ It can simplify your finances by keeping everything in one place
Things to consider:
⚠️ You may pay more interest overall if the borrowing is spread over many years
⚠️ Your monthly repayments may increase
⚠️ There may be fees involved in switching your mortgage
It’s all about weighing up the pros and cons based on your situation.
Timing Matters More Than You Think
One of the biggest factors is when you remortgage.
If you’re nearing the end of your current deal, it could be a natural time to review your options and potentially raise funds.
But if you’re still within your fixed term, there may be early repayment charges (fees for leaving your current deal early).
In some cases, it might still make sense – but it’s important to check first.
Will Home Improvements Add Value?
This is a big question – and the answer is: sometimes.
Certain improvements are more likely to add value than others. For example:
- Kitchens and bathrooms often have a strong impact
- Adding usable space (like extensions) can be valuable
- Energy-efficient upgrades can make your home more appealing
However, not all improvements guarantee an increase in value.
It’s worth thinking about whether you’re improving your home for:
- Your own lifestyle
- Future resale value
- Or a mix of both
Are There Alternatives to Remortgaging?
Yes – and it’s worth knowing your options.
Depending on your situation, you could also consider:
- A further advance from your current lender (borrowing more without switching)
- A personal loan for smaller projects
- Saving up and paying for improvements gradually
Each option has its pros and cons, so it’s important to look at the bigger picture.
How HLC Mortgages Can Help
Remortgaging to fund home improvements isn’t just about getting extra borrowing – it’s about getting it right.
At HLC Mortgages, we:
- Take the time to understand your plans and goals
- Explain your options in simple, easy-to-understand terms
- Compare lenders across the market
- Help you find the most suitable deal for your circumstances
Whether you’re planning a full renovation or just updating a few key areas, we’ll help you understand what’s possible – and what makes the most sense for you.
Bringing It All Together
So, can you fund home improvements when you remortgage?
In many cases – yes.
But the right approach depends on your individual situation.
To recap:
✔️ You can often release equity to fund improvements
✔️ The amount you can borrow depends on equity, income, and affordability
✔️ Remortgaging can be cost-effective—but it’s not always the best option
✔️ Timing and fees are important to consider
✔️ There are alternative ways to fund improvements if needed
Final Thought
Improving your home can make a huge difference – not just to how it looks, but how it feels to live in.
And if you can fund those improvements in a smart, manageable way, it can be a really positive step forward.
The key is making sure everything is structured in a way that works for you – both now and in the future.
Get in touch
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