Can you use your mortgage to fund renovations?
In some cases, yes. If you have enough equity in your home and meet lender affordability criteria, it may be possible to borrow extra against your property to help fund renovation or home improvement work.
For many homeowners, this means looking at one of two main routes:
- Remortgaging to borrow more
- Taking a further advance from your current lender
The most suitable route will depend on your current mortgage, your interest rate, whether early repayment charges apply, how much you want to borrow, and what type of work you are planning.
Using your mortgage to fund renovations can work well in the right circumstances, but it is important to understand both the opportunities and the longer term cost of borrowing more.
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.
Remortgage vs further advance for home improvements
If you want to borrow extra for renovations, one of the first questions is whether to remortgage or ask your current lender for a further advance.
Remortgaging to renovate means replacing your existing mortgage with a new one, potentially borrowing more at the same time. This may be worth considering if your current deal is ending or if switching lender opens up a more suitable overall option.
A further advance means borrowing additional money from your current lender without replacing the whole mortgage. This can sometimes be simpler, especially if you want to stay where you are, but the extra borrowing may be on a different rate from your main mortgage.
The better option will depend on:
- Your current mortgage deal
- Whether early repayment charges apply
- How much equity you have
- How much extra you need to borrow
- Whether your current lender or another lender offers the better overall fit
There is no one size fits all answer, which is why it helps to compare the numbers.
What is a renovation mortgage?
The phrase renovation mortgage is sometimes used quite broadly. In some cases, people mean a standard remortgage or further advance used to fund home improvements. In others, they mean a more specialist type of lending for properties that need major work.
If the property is already mortgageable and you are improving your existing home, a standard remortgage or further advance may be enough.
If the project is more complex, or the property needs substantial refurbishment before it would meet normal lender standards, more specialist finance may sometimes be needed.
That is one reason it helps to get advice early. The right route can depend not only on your finances, but also on the type of property and the scale of the work you are planning.
What do lenders look at when you remortgage for renovations?
If you want to borrow extra for renovations, lenders will usually look at both your financial circumstances and the project itself.
They may consider:
- How much equity you have in your home
- Your income and affordability
- Your existing mortgage balance
- How much extra you want to borrow
- The purpose of the borrowing
- Whether the planned work is cosmetic or more structural
- Whether early repayment charges apply on your current mortgage
- The likely value and suitability of the property
Some lenders may also want more detail on the work itself, particularly if the project is larger or more specialist.
This is why remortgaging for renovations is not just about whether you can borrow more in theory. It is about whether the figures and lender criteria work in practice.
Costs and risks of borrowing more for renovations
Using your mortgage to fund renovations can be attractive, but it is important to think carefully about the longer term cost.
Points worth considering include:
- You will be borrowing more against your home
- The extra borrowing will usually be repaid over a much longer period than a short term loan
- You may pay interest on the borrowing for many years
- Early repayment charges may apply if you remortgage before your current deal ends
- There may be arrangement fees, legal fees or valuation costs
- Your monthly payments may increase
Even if the monthly cost looks manageable, it is still important to look at the total cost over time and whether that borrowing fits your wider plans.
When might remortgaging for home improvements be worth considering?
Remortgaging for renovations may be worth considering if:
- You want to improve your current home rather than move
- You have built up equity in the property
- Your existing mortgage deal is ending
- The work could improve how the property works for you and your family
- You want to compare mortgage borrowing with other finance options
For some homeowners, this can be a sensible way to fund improvements. For others, a further advance or different form of finance may be more suitable. The key is understanding the numbers clearly before going ahead.
Why speak to Your Mortgage Expert about remortgaging to renovate?
If you are thinking about borrowing more to fund home improvements, it helps to understand not just whether it is possible, but which route is likely to make the most sense financially.
At Your Mortgage Expert, we can help you:
- Compare remortgaging with a further advance
- Understand how much equity may be available
- Assess likely affordability and borrowing options
- Work through the costs, fees and possible early repayment charges
- Understand whether a standard remortgage or more specialist route may be needed
- Move forward with clearer advice and more confidence
We help clients across the UK by phone and video, as well as offering in person appointments where appropriate.
This page was last updated in April 2026