Can I Get A Mortgage For Home Improvements

Our Mortgage Service - Raise capital For Home Improvements

Use our specialist broker team to raise capital for home improvements:

• 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 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

To investigate your mortgage options for raising capital call our mortgage team on 0117 403 4474 or fill in our call back form.

As your mortgage is such an important transaction, good advice is imperative.

How do I go about getting a mortgage for home improvements ?

If you’re looking 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 capital.   

If you own your home outright then you could take out a mortgage on it, alternatively if you have an existing mortgage on the property you have two choices, you can either: remortgage to raise capital or you could consider a ‘second charge mortgage’ also known as a homeowner or secured loan. 

• Remortgage to raise capital: This would involve you taking out a new mortgage on a larger amount of equity than your existing one. You can then use the capital raised to pay off your existing mortgage and the sum remaining to carry out the home improvements. 

• Second charge mortgage/homeowner loan: You can take out a homeowner loan in addition to your existing mortgage as long as you have enough equity on your home. For example, if your home was worth £200,000 and you have £50,000 left to pay on your mortgage, you could take out a secured homeowner loan on some of the £150,000 equity in the property that you own. Second charge mortgages can have higher rates than you would expect from a mortgage, however they potentially may be cheaper if your existing remortgage has a large early repayment fee. 

One of the advantages of home renovation, as not only does it make it a more enjoyable place for you to live, but done so correctly it may add value to your property. However, there is also the risk of putting yourself into negative equity (when the value of your mortgage is greater than your home) this could happen for instance if you ran out of capital halfway through a renovation, leaving your home with unfinished work.

Remember that both a remortgage and second charge mortgage are secured products; failure to keep up with your repayments can result in your home being repossessed. Homeowner loans work on a ‘second charge ’basis while your main mortgage works on the ‘first charge’ this essentially means that you failed to make your repayments and your home was repossessed , your main mortgage would have first priority to be repaid through the sale of the property,

As with many financial products, it is worthwhile to shop around thoroughly beforehand to try and find the best product available, you may also benefit from speaking to an independent mortgage adviser.

An independent market adviser can not only offer you impartial advice about mortgages and homeowner loans, they can also use their expert knowledge of the market to search across different providers to try and find some of the most suitable products for your needs.

If you think you might be able to benefit from the service of a mortgage adviser you can fill in our online contact form to request a call back from a Fair Mortgages adviser who can offer you a free initial consultation - Call us on 0117 403 4474.