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Can I Borrow More Money For Home Improvements?

MORTGAGES | 29.11.2021

When settling into your new house, there’s a good chance that some of the interior won’t be to your taste. But change isn’t cheap, and you might need to borrow extra for renovations. Whether you’re looking to start a full bathroom revamp or simply make a few changes to the bedrooms, this guide will help you decide which option is right for you when it comes to borrowing more money for home improvements.

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.

How else can I get more money for renovations?

If you’re concerned about borrowing more on your mortgage for home improvements, you might want to consider an alternative such as taking out an unsecured loan. These types of loans aren’t connected to a piece of collateral, meaning the lenders won’t be able to touch your assets if you fail to make the repayments. However, unsecured loans come with higher interest rates than secured loans, and you’ll need a healthy credit report and steady income to be granted one by a bank or building society. Of course, you always have the option to use any savings you might have built up over the years. As long as you’ve budgeted accordingly, there’s no stopping you from dipping into your savings account to truly make your house a home.

Help with borrowing more for renovations

If you’d like to make some home improvements but currently don’t have the funds to do so, please don’t hesitate to get in touch with one of our expert advisers today. We’ll search the market to find the most suitable deal for you and assist you with any paperwork so that you can get started on your project without any delay.
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