Remortgaging for Home Improvements
If you have enough equity in your property then it will be possible to remortgage to carry out home improvements. You will need to show the new lender that you can afford the new increase in the mortgage loan, so your current income and credit profile will be tested. Check with our quick mortgage calculator to see if you could borrow what you need based on your current income. We also have a new property equity calculator that can help you estimate the amount of equity in your property.
Home improvement mortgages are available for nearly all purposes. Whether that be a new bathroom, a garage conversion, a new kitchen or even a bigger extension. If you do require a large lump sum on a remortgage for home improvements then some lenders might ask you to provide a quote from a builder or the contractor carrying out the work.
Typically, a remortgage on average will take around 30 days to complete. The mortgage offer itself would typically take between 1-2 weeks to issue and then the remaining work is down to your legal conveyancer. When there is a remortgage and a change of lender involved it will require the appointment of a legal conveyancer, as the loan is changing hands from one mortgage lender to another.
What to consider when remortgaging:
The 6 month rule
Some mortgage lenders can have a 6 month rule to restrict a remortgage until you have owned the property for 6 months. This was a measure introduced a few years ago, partly to stop property scalpers from buying bargain/distressed properties and remortgaging them to release all of the equity upon completion.
Further Advances / Second Charges
Further advances with your current lender might be a better solution without having to move your entire mortgage to another lender. Likewise, a second charge would involve another lender helping out with a loan and placing a legal charge on your property in second place to your main mortgage lender.
Once you have discussed your circumstances with one of our brokers we will be able to determine what type of mortgage will be most suitable to you.
Author: Ben, Glow Mortgage Advisor (CeMAP, BSc Hons)
Last Updated: 30th April 2019