Remortgage for Home Improvements – What You Need to Know

Thinking about giving your home a fresh new look? Whether it’s adding a new kitchen, a luxurious bathroom, or a bigger living space, improving your home can be more affordable than moving. But renovations still need funding, and remortgaging could be the perfect way to access the money you need.

At The Mortgage Store Cheltenham and Gloucestershire, our experienced mortgage advisers are here to guide you through the process and help you make the right decision.

What is a Remortgage?

A remortgage is when you replace your current mortgage with a new one, either with your existing lender or a new one. Think of it like shopping around for a better deal on your broadband or phone – except this time, you could unlock funds to transform your home.

Our mortgage advisers will help you:

Find better rates or deals.
Understand how much you can borrow.
Navigate the entire remortgage process stress-free.

Can You Remortgage?

If you already have a mortgage, you can usually remortgage your home. It’s all about finding the best deal for you.

However, you’ll want to check the terms of your current mortgage, as there may be early repayment fees if you switch before your deal ends. It’s a good idea to speak to one of our mortgage advisers 6 months before your current rate expires so we can help you plan ahead.

Why Do People Remortgage?

There are many reasons why homeowners remortgage, including:

Finding a better deal to save money.
Moving from interest-only to repayment mortgages.
Making overpayments.
Borrowing more money for specific needs – like home improvements.

Home improvements are one of the most common reasons for remortgaging. Whether you’re planning a new kitchen, a loft conversion, or an extension, remortgaging allows you to release equity in your home to fund the project.

How Does Releasing Equity Work?

Releasing equity simply means borrowing against the value of your home. For example:

Your home is worth £300,000.
Your current mortgage balance is £100,000.
You could remortgage for £150,000 to release £50,000 for your home improvements.

Key Point: Most lenders won’t allow you to borrow 100% of your home’s value, but our advisers can help you find a deal that suits your plans.

How to Arrange a Remortgage for Home Improvements

Arranging a remortgage might sound complicated, but our friendly mortgage advisers make it simple:

Speak to an Adviser
Start with a chat. We’ll review your current mortgage, understand how much you need, and scan the market for the most suitable lenders and deals.
Understand Your New Payments
By increasing your borrowing, your monthly mortgage payments could go up. Our advisers will explain how this works and ensure it’s affordable for you.
Agreement in Principle
We’ll help you secure an Agreement in Principle (AIP) – this gives you an idea of how much a lender is willing to offer before running a full credit check.
Provide Documentation
You’ll need to share personal and financial details, like proof of income. Don’t worry – our advisers will guide you through it step by step.
Complete the Process
Once approved, your solicitor will handle the transfer from your old mortgage to the new one. And just like that, you’ll have the funds to bring your home improvement plans to life!