Can you borrow more on a mortgage for improvements?
Yes. This is called additional borrowing. Additional borrowing means that when you remortgage, you borrow more money, increasing the overall size of your mortgage. You can then use these extra funds to pay for home improvements. There are several ways to borrow more on your mortgage:- Further advance - This is where you borrow more money from your existing mortgage lender. Just like with every other mortgage application process, your lender will assess your income and outgoings to ensure you can keep up with the repayments.
- Remortgage - Remortgaging is when you switch your current mortgage to a new deal, either with your existing lender or a new one. When you remortgage, you’re given the option to borrow more money at the same time by increasing your mortgage loan. A lender’s decision on your application to borrow more money for home improvements will depend on their affordability assessment.
- Second charge mortgage - A second charge mortgage is a secured loan which uses your property as collateral to borrow more money for home improvements. You can use the equity you have in your home (capital built up in your property) as security against taking out another loan.