Is It Possible to Get a Mortgage for home Improvements
Best Home Improvement Mortgage Rates
Is It Possible to Get a Mortgage for home Improvements
-
-
- 3.84% Initial
- 5 year fixed
- 6.4% APRC
-
Cashback £0Free LegalsFree Valuation
- Get quotes
-
-
- Halifax
- 3.85% Initial
- 5 year fixed
- 6.7% APRC
-
Cashback Max £250Free LegalsFree Valuation
- Get quotes
-
- Halifax
- 3.85% Initial
- 5 year fixed
- 6.7% APRC
-
Cashback Max £250Free LegalsFree Valuation
- Get quotes
-
- Lloyds Bank
- 3.86% Initial
- 5 year fixed
- 6.7% APRC
-
Cashback Max £250Free LegalsFree Valuation
- Get quotes
-
-
- 3.89% Initial
- 5 year fixed
- 5.9% APRC
-
Cashback Max £1,250Free LegalsFree Valuation
- Get quotes
-
Is it possible to get a mortgage for home improvements?
Raise capital for home improvements with our mortgage service
- Raising capital for home improvements is easy with our specialist broker team
- Whole of market service - we work with UK lenders who will lend for capital raising purposes
- Access to leading market mortgage rates
- Access to exclusive loan deals that are not available on high street
- Fast turnaround - speak to us today if you need to move quickly
- Looking to raise additional finance on top of your existing mortgage or buy to let mortgage? - we have access to a range of finance solutions
It is imperative to get good advice when it comes to your mortgage, since this is such an important transaction.
What is the process for getting a mortgage for home improvements?
- When you're planning to make some improvements to your home, such as a new kitchen, loft conversion, or perhaps even an extension, you may be wondering if you can mortgage or remortgage your home to raise the funds.
A mortgage could be taken out on your home if you own it outright. If you already have a mortgage on your property, you have two options; either remortgage to raise capital or consider a second charge mortgage, also known as a secured loan or a homeowner loan.
Raising capital by remortgaging:
This involves taking out a new mortgage based on a larger amount of equity than your current mortgage. The capital raised can then be used to pay off your existing mortgage and to improve your home.
Taking out a second charge mortgage or homeowner loan is possible as long as you have enough equity in your home.
Take for example, if your home is worth £200,000 and you owe £50,000 on your mortgage, you could take out a secured homeowner loan on some of the £150,000 equity in the property. There is a possibility that second charge mortgages may be cheaper if your existing remortgage has a large early repayment fee.
Renovations not only improve your quality of life, but they can also add value to your home if done properly. Negative equity can also occur when your mortgage value exceeds your home's value. For example, if you ran out of money halfway through a renovation, leaving your home unfinished.
You may lose your home if you fail to make your repayments on a remortgage or second charge mortgage. As a result of your homeowner loan, your main mortgage works on a 'second charge' basis, which means if you fail to make payments and your house is repossessed, your main mortgage will be repaid first through the sale of the property.
The best way to find the best mortgage product is to shop around thoroughly beforehand. You may also benefit from speaking with an independent mortgage advisor.
Independent whole-of-market advisers can offer impartial advice on mortgages and homeowner loans and search across different providers to find the best products based on their expert knowledge of the market.
Independent Advice
If you are not sure about options for financing home improvements speak to our independent mortgage broker team who will be able to offer impartial advice or you can call us on 0117 403 3464