Planning a new kitchen, loft conversion or energy upgrade this year? If you have equity, remortgaging or arranging extra borrowing on your current deal can be a practical way to fund it. Done well, you can spread costs over time and potentially improve your home’s value and comfort.
This guide walks through how lenders look at additional borrowing, how valuations and loan-to-value bands shape what you can release, and the trade-offs versus a personal loan. You will also find what to tell your lender about the works, the documents to prepare, timing tips and a simple decision tree to choose between a remortgage, further advance or a second charge.
As ever, this is general information, not personal advice. If you want a balanced, unbiased and comprehensive view, speak to an advisor who will map the numbers to your real plans.
Can you remortgage for home improvements?
Yes, many homeowners remortgage to release equity for renovations. In 2026, lenders typically allow additional borrowing for clear, value-adding works such as kitchens, bathrooms, extensions, loft conversions, rewiring, insulation and heating upgrades. Decorative updates are usually fine too. Higher risk works, such as structural changes, outbuildings or properties undergoing major reconstruction, attract more questions and sometimes staged releases.
You do not have to switch lender to raise funds. If your current fixed rate has time left, a further advance with the same lender might suit you better than remortgaging away, because it can avoid early repayment charges (ERCs) on your current loan. If your fixed rate is ending within the next six months, comparing remortgage deals against a product transfer and a further advance is sensible.
How lenders assess extra borrowing
Affordability and risk drive the decision. Expect checks on:
- Income and outgoings: lenders run updated affordability models across your total debt after the works finance is added. Overtime, bonuses and variable income are often shaded down unless evidenced over time.
- Credit profile: a clean, stable profile with sensible limits supports higher borrowing.
- Property value and loan-to-value (LTV): a valuation confirms current market value. Your LTV band after borrowing shapes pricing and choices. Common residential LTV tiers are 60%, 75%, 80%, 85% and 90%. Crossing a band can change available rates and fees.
- Purpose of funds and works detail: clear descriptions, quotes and timelines help underwriters understand risk and whether any works require permissions or structural sign-off.
Remember, affordability outcomes vary by lender. A quick sense-check with a broker can show which lenders are friendlier to your income pattern and property type.
Valuations and LTV bands explained
A lender valuation estimates today’s value, not a hoped-for post-renovation figure. If your property is worth £300,000 and you owe £180,000, you sit at 60% LTV. If you want £40,000 for an extension, your balance would move to £220,000 which is about 73% LTV. That usually stays within a competitive 75% band. If the valuation comes in lower than you expect, your LTV can jump into a higher band, affecting pricing and maximum borrowing. You can ask your advisor to model scenarios and the impact of a down-valuation.
Is it cheaper to remortgage or get a loan?
It depends on amount, term and your credit. Personal loans can be fast for smaller sums, often up to £25,000 to £30,000. Rates can be competitive if you have excellent credit and you plan to repay over a short term. For larger projects, releasing equity via a remortgage or further advance may offer a lower monthly cost because it spreads over a longer term. However, stretching a cost over 20 to 30 years can increase total interest paid.
Typical considerations:
Interest rate compared with your current mortgage and available remortgage rates.
Fees for a remortgage, such as valuation, legal work and any lender product fee. Many remortgages include free legals or cashback, but terms vary.
ERCs if you switch away mid-fix. If you are inside a fixed period, weigh the ERCs against any savings or the cost of using a further advance instead.
Speed and simplicity. A personal loan can fund quickly. A further advance or remortgage can take longer but may provide better longer-term economics.
How much can you borrow for improvements?
There is no single cap. Lenders typically consider:
- Your affordability result across the total mortgage balance.
- Their maximum LTV for your case, commonly 85% on residential remortgages, sometimes higher with the right profile.
- The nature of the works and whether they increase or reduce lender risk.
As a rough guide, many households find practical equity-release ranges between £10,000 and £100,000, but outcomes vary. A quick, document-led review can give a realistic ceiling for your plan.
What to tell your lender about the works
Be clear and specific. Provide:
- A short description of the project, who will complete it and target dates.
- Cost breakdown or quotes.
- Any planning permission or Building Regulations requirements, plus how you will evidence completion (completion certificate, structural engineer sign-off, electrical and gas safety certificates).
- Whether you need to live elsewhere during disruptive phases.
- Transparent information reduces back-and-forth and helps underwriters sign off with confidence.
Documents you will typically need
Prepare these early to speed decisions:
- Proof of ID and address
- Last three months of bank statements
- Payslips and P60 for employed applicants, or SA302s and tax year overviews for self-employed applicants
- Existing mortgage statement
- Quotes, contracts and permissions for the works
For self-employed applicants, different lenders assess income differently. If that is you, consider reading our guidance on mortgages for self employed, then speak with an advisor who can route your case to a suitable lender.
Timing your application
Start planning six to nine months before your current fixed rate ends. Most lenders can issue product transfers or remortgage offers up to six months ahead. If you are mid-fix and want to raise funds now, compare a further advance against a remortgage away, including any ERCs. If your project has multiple stages, aim to have funding approved before contractors lock diaries and materials.
Decision tree: remortgage, further advance, or second charge
Use this simple pathway to narrow your route:
If your fixed rate ends within six months, compare a full remortgage against a product transfer with a further advance. Pick the route that balances total cost, speed and flexibility.
If you are mid-fix and ERCs are high, ask your current lender about a further advance first. It keeps your existing deal in place and adds a new tranche for the works.
If your current lender will not lend enough or the timing is critical, explore a regulated second charge mortgage as an alternative to disturbing your main mortgage. These are secured loans with their own rates and fees. This is general awareness only; seek personalised advice before proceeding.
Second charges and personal loans are regulated differently. Always check details and get advice tailored to your situation.
Fees to expect
Costs vary by lender and route. You may see:
- A product fee on the new rate
- Valuation costs if not included
- Legal costs or a legal package for remortgages
- Broker fees where applicable, disclosed up front
- Potential ERCs if redeeming or reducing a fixed-rate mortgage during its fixed period
- Overpayments: most lenders allow a specified percentage of overpayment without ERCs. Verify how the lender applies overpayments and whether they reduce the term or monthly payment.
What you should not do when remortgaging
- Do not start large credit commitments just before applying. New car finance or credit cards can reduce affordability.
- Do not underestimate costs or hide project details. Surprises slow cases and can trigger declines.
- Do not wait until your fix ends. Start six to nine months early to avoid drifting onto a lender’s standard variable rate.
- Do not assume all lenders view income the same. Present tidy, consistent documents and seek a lender fit for your profile.
Quick FAQs
Can I remortgage my house for home improvements?
Yes. Lenders commonly allow equity release for value-adding projects, subject to affordability, LTV and clear details of the works.
Is it cheaper to remortgage or get a loan?
For small, short-term borrowing, a personal loan might be competitive and fast. For larger sums, a remortgage or further advance can offer lower monthly payments, but the total interest over a long term can be higher. Compare both with real numbers.
How much can I borrow for home improvements?
It depends on affordability and your post-borrowing LTV. Many cases sit within 60% to 85% LTV bands. A quick assessment with documents will give a realistic figure.
Do I need to tell my mortgage lender about renovations?
Yes. Share a clear scope, costs, permissions and timescales. Provide quotes and, where relevant, Building Regulations or structural sign-off plans.
What should you not do when remortgaging?
Do not leave it late, take on new debt right before applying, or gloss over the works detail. Keep documents clean and consistent.
Local support and next steps
If you want support from a local mortgage adviser, you can speak with a mortgage broker in Essex through We Do Mortgages. If you are comparing options ahead of your deal ending, our overview of remortgage deals can help you frame the conversation before you gather quotes and documents.
Your property may be repossessed if you do not keep up repayments on your mortgage.
We Do Mortgages Ltd is an appointed representative of Sesame Ltd which is authorised and regulated by the Financial Conduct Authority.
