How can you fund energy efficient home improvements?
| Funding route | How it works | What to compare |
|---|---|---|
| Savings | You pay for the work without borrowing | Keep enough savings for emergencies, unexpected costs and project overruns |
| Grants and support schemes | Eligible funding contributes towards qualifying energy improvements | Current availability, eligibility, approved work and installer requirements |
| Further advance | You borrow more from your existing mortgage lender | The new rate, monthly payment, fees, mortgage term and total interest |
| Remortgage | You replace your existing mortgage and include additional borrowing | Early repayment charges, product fees, monthly payments and the cost of moving the whole mortgage |
| Second charge or other secured borrowing | You keep your current mortgage and arrange separate borrowing secured against your home | Interest rate, fees, combined monthly commitments and total repayment cost |
Check whether you qualify for grants or support before borrowing. Available schemes and eligibility rules change, so use current government guidance rather than relying on an old article or quotation.
The funding route for you depends on your current mortgage, early repayment charges, property equity, affordability and the amount you need.
At Your Mortgage Expert, we compare a further advance with a full remortgage and other suitable borrowing routes. We show you the monthly payments, fees and total cost, so you can understand which option fits your plans before committing to the work.
Do energy efficient improvements increase property value?
Energy efficient improvements strengthen several features that buyers value:
- Lower expected energy use
- A warmer and more comfortable home
- A better maintained property
- Modern heating and controls
- A stronger EPC rating
- Less work required after moving in
However, the amount you spend is not automatically added to the sale price.
An expensive installation does not guarantee an equal increase in value. Buyer demand, property type, location and quality of work all affect the result.
Treat energy improvements as an investment in the comfort, running costs and future appeal of your home rather than relying on a guaranteed financial return.
If you’re preparing to sell, speak to local estate agents about which improvements buyers in your area value before committing to a large project.
We would advise you speak to a mortgage broker before commencing any work to establish what budget might be available for your project.
A MORTGAGE IS A LOAN SECURED AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE OR ANY OTHER DEBT SECURED ON IT.
There may be a fee for mortgage advice. The actual amount you pay will depend upon your circumstances. The fee is up to 1% but a typical fee is 0.3% of the amount borrowed.
Where should you start?
Start by establishing what you can realistically afford to spend and how you will fund the project.
Speak to a mortgage broker before paying deposits or committing to major work. We can review your current mortgage, property equity, income and existing commitments, then compare a further advance, remortgage and other suitable borrowing routes.
This gives you a realistic budget and helps you understand the monthly payment, fees and total borrowing cost before your plans become fixed.
Next, check your property’s existing Energy Performance Certificate. An EPC records the current energy rating and includes recommended improvements. If it is old or you have completed work since it was issued, arrange an updated assessment.
For larger or more complicated projects, use a qualified retrofit professional to assess the property and identify the right order of work. For example, improving insulation and reducing heat loss before replacing the heating system allows the new system to be designed around the home’s updated requirements.
Obtain detailed quotations and include a contingency for unexpected costs. We can then confirm the funding route and manage the mortgage application before you agree a start date.
Bringing the property plan and financial plan together helps you avoid committing to work that exceeds your budget or arranging borrowing that costs more than necessary.
What is a green mortgage?
Green mortgages are products or incentives connected with an energy efficient property or qualifying home improvements.
Depending on the lender and product, this includes:
- A preferential mortgage rate
- Cashback after completing eligible improvements
- Additional borrowing for qualifying work
- Products linked to an EPC rating
- Incentives for improving the property’s energy performance
A green label does not automatically make a mortgage the cheapest option.
We compare the interest rate, product fee, incentive, early repayment charge and total cost against standard mortgage products. A cashback payment loses its value if the mortgage costs substantially more overall.
How can you fund energy efficient home improvements?
The main routes include:
Savings
Using savings avoids borrowing costs, but retain enough money for emergencies and unexpected project expenses.
Grants and support schemes
Check current government, council and energy supplier schemes before borrowing. Eligibility depends on your income, location, property and the work planned.
Further advance
A further advance means borrowing additional money from your current mortgage lender.
It keeps the borrowing with the same lender, but the additional amount can have a different rate and deal period from your main mortgage.
Remortgage
A remortgage replaces your existing mortgage with a new one and can include additional borrowing for improvements.
This gives you the opportunity to compare other lenders, but fees and any early repayment charge on your existing mortgage form part of the decision.
Other secured borrowing
Separate secured borrowing leaves your existing mortgage in place and adds another loan secured against the property.
The rate, fees, term and total repayment require careful comparison with a further advance and full remortgage.
Energy efficient home improvements at a glance
| Improvement | Main benefit | What to check |
|---|---|---|
| Loft, wall or floor insulation | Reduces heat loss and improves comfort | Property construction, ventilation and installation method |
| Draught proofing | Reduces unwanted cold air and heat loss | Ventilation must remain adequate |
| Windows and doors | Improves comfort, security and heat retention | Cost, condition of existing windows and planning restrictions |
| Heating controls or a new heating system | Gives you greater control and improves heating efficiency | Suitability for the property and total installation cost |
| Solar panels | Generate electricity at the property | Roof condition, orientation, ownership and installer terms |
| Battery storage | Stores electricity for later use | Compatibility, capacity, cost and expected usage |
| Heat pump | Provides lower carbon heating | Insulation, heat loss, radiators, space and installation design |
Why use a mortgage broker to fund home improvements?
Adding home improvement costs to a mortgage spreads repayment over a long period. This reduces the immediate monthly cost but increases the amount of interest paid over time.
At Your Mortgage Expert, we:
- Review your current mortgage and deal end date
- Check existing early repayment charges
- Compare a further advance with a full remortgage
- Consider other suitable mortgage routes
- Calculate the monthly payment and total borrowing cost
- Compare rates, fees and incentives
- Check whether a green mortgage or improvement incentive is available
- Assess how the additional borrowing affects your loan to value
- Check affordability and lender criteria
- Explain the effect of different mortgage terms
- Prepare and manage the application
- Liaise with the lender through to completion
This gives you a clear financial comparison before you commit to contractors or building work.
For example, leaving your current mortgage to secure a lower rate on additional borrowing can cost more once an early repayment charge and product fees are included. Equally, staying with your lender without comparing alternatives can leave you paying more than necessary.
We calculate the complete position rather than looking at one rate or payment in isolation.
Energy efficiency considerations for landlords
Energy efficiency affects running costs, tenant comfort and regulatory requirements.
If you own a rental property, check the latest EPC and minimum energy efficiency rules before planning work. Government requirements and the EPC framework are changing, so rely on current guidance rather than an old target or article.
We can review funding options for qualifying buy to let properties and explain how additional borrowing affects the mortgage.
Your Mortgage Expert can help you fund your energy efficient home improvements
Energy efficient improvements work best when the property plan and financial plan support each other.
Establish what your home needs, understand the full project cost and compare the available funding routes before work begins.
Tell us about your current mortgage, property and planned improvements. We will compare suitable borrowing options, calculate the costs and explain the next step clearly.
We help homeowners and landlords throughout the UK by phone and video call, with face to face appointments also available near Salisbury.
Last reviewed: June 2026
This article provides general information and does not constitute personalised mortgage, property, tax or energy efficiency advice. Obtain appropriate professional advice and quotations before completing structural, heating or energy improvement work.