Remortgaging for home improvements: How does it work?

The rise of the renovation

As house prices continue to soar, many current homeowners have shifted their focus from buying bigger, to improving their current home situation. During the pandemic, nearly 50% of Brits made home improvements, whether that be a fresh lick of paint, a loft extension or a whole new home office space.

By investing in your home, you can add significant value to the property, particularly if additional rooms are being created. But how do you fund these renovations? We may be able to help. Here we run through everything you will need to know about remortgaging for home improvements.

How to fund home improvements

The cost associated with home renovations can soon rack up and reach considerable amounts, so it’s always important to plan ahead and understand your budget.

Extension Type Average Cost
A single storey, 30m2 extension Between £30K and £60K
A two storey, 40m2 extension Between £48K and £88K
A two storey 60m2 extension Between £72K and £132K

To pay for these improvements, many homeowners look to release equity in their property by remortgaging with their current lender or by seeking a new deal with a new lender.

The funds released during this process can be put towards the renovation works on your home and in turn drive up the value of your property.

Increasing equity with home improvements

How affordability is assessed

Benefits of remortgaging for home improvements

Negatives of remortgaging for home improvements

Additional funding routes for home improvements

Can I borrow more on my mortgage for renovations?

Next steps

If you’re dreaming of expanding your home, through a third bedroom loft conversion or a home office set up in the garage, you can make your dreams a reality by remortgaging with Furness Building Society.

Get in touch to discuss borrowing on your mortgage for home improvements by sending us a message or calling our team on 0800 834 312.