Is it worth remortgaging for home improvements?

For many homeowners in the UK, the prospect of enhancing their property is an exciting one. Whether it’s adding an extension, renovating the kitchen, or creating a lush garden retreat, home improvements can significantly boost both the comfort and value of your home. However, the big question that often arises is: “Is it worth remortgaging for home improvements?” Let’s delve into this topic to help you make an informed decision.

What does remortgaging mean?

Remortgaging involves switching your current mortgage to a new deal, either with your existing lender or a new one. This can be done to get a better interest rate, access additional funds, or change the terms of your mortgage. When considering remortgaging for home improvements, the goal is usually to borrow more money against the value of your home to finance the project.

Benefits of remortgaging for home improvements

Lower interest rates: One of the most compelling reasons to remortgage is to take advantage of lower interest rates. Mortgage rates are generally lower than those for personal loans or credit cards, making this an attractive option for financing substantial home improvements.

Increased home value: Quality home improvements can significantly increase the market value of your property. An upgraded kitchen, an extra bathroom, or an extension can make your home more appealing to potential buyers, which is beneficial if you plan to sell in the future.

Better living conditions: Enhancing your living space can improve your quality of life. Whether it’s creating more space for a growing family or updating outdated rooms, the personal satisfaction and comfort gained from these improvements can be priceless.

Is it worth remortgaging for home improvements?

Get personalised advice from our mortgage experts and make an informed decision.

Potential downsides to consider

Increased debt: Remortgaging means increasing the amount you owe. While this might not be a problem if your home’s value rises, it’s essential to consider your ability to repay the larger loan, especially if your financial situation changes.

Additional costs: Remortgaging can involve fees and charges, including valuation fees, legal fees, and early repayment charges on your existing mortgage. These costs can add up and should be factored into your decision.

Market fluctuations: The property market can be unpredictable. While improvements generally increase home value, there’s always a risk that market conditions could change, potentially affecting the return on your investment.

When is remortgaging a good idea?

Equity: If you have significant equity in your home, remortgaging can be a sensible option. High equity means you can borrow more against your property at favourable rates.

Low interest rates: Remortgaging is particularly advantageous when interest rates are low. This can reduce the overall cost of borrowing, making your home improvement project more affordable.

Long-term plans: If you plan to stay in your home for a long time, the benefits of improved living conditions and increased home value can outweigh the costs and risks associated with remortgaging.

Alternatives to remortgaging

If remortgaging doesn’t seem like the best option, there are alternatives worth considering:

Personal loans: For smaller projects, a personal loan might be a more straightforward and faster option, though typically with higher interest rates.

Home improvement loans: Some lenders offer specific loans for home improvements, which might come with competitive rates and terms tailored to renovation projects.

Savings: If you have sufficient savings, using them can avoid increasing your debt and incurring additional costs associated with remortgaging.

In summary

So, is it worth remortgaging for home improvements? The answer depends on your personal circumstances, financial situation, and long-term goals. Remortgaging can offer a cost-effective way to fund significant renovations, potentially adding value to your property and improving your quality of life.

However, it’s crucial to weigh the benefits against the risks and costs involved. Consulting with a financial advisor can provide tailored advice to help you make the best decision for your situation.
Ultimately, whether you decide to remortgage or explore alternative financing options, careful planning and consideration are key to ensuring your home improvement project is a success.


How much can I borrow when remortgaging for home improvements?

The amount you can borrow depends on the equity in your home, your income, and the lending criteria of the mortgage provider. Typically, lenders allow you to borrow up to a certain percentage of your home’s value.

How long does the remortgaging process take?

The process typically takes between four to eight weeks, but this can vary depending on the lender and your personal circumstances.

Can I remortgage with bad credit?

Remortgaging with bad credit can be challenging but not impossible. It might limit your options and result in higher interest rates. Consulting with a mortgage advisor can help you understand your options and find suitable deals.

Will remortgaging affect my credit score?

Applying for a remortgage can affect your credit score slightly due to the hard inquiry performed by lenders. However, managing the new mortgage responsibly can positively impact your credit score over time.

How can I find the best remortgaging deal for home improvements?

Compare different lenders, interest rates, terms, and fees. Using a mortgage broker can also help you navigate the options and find the best deal for your needs.

Is there a best time of year to remortgage?

The best time to remortgage depends more on your financial situation and market conditions rather than a specific time of year. Keep an eye on interest rates and consider remortgaging when they are low.

What documents do I need to remortgage for home improvements?

You’ll typically need:

  • Proof of income (payslips, tax returns)
  • Bank statements
  • Proof of identity (passport, driver’s license)
  • Details of your existing mortgage
  • An estimate of your property’s value
Can I use the extra funds from remortgaging for other purposes?

Yes, you can use the additional funds for various purposes, including debt consolidation, education expenses, or other significant financial needs. However, it’s crucial to ensure that the primary purpose aligns with your financial goals and capacity to repay the loan.

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