Home Improvement Mortgage: Finance Your Renovations

If you’ve been dreaming of upgrading your home but are unsure how to finance the project, a home improvement mortgage could be the solution.

Whether you’re looking to expand your living space, modernise your kitchen, or create an energy-efficient home, financing these improvements through a mortgage can make your plans a reality without the need for large upfront costs.

What is a Home Improvement Mortgage?

A home improvement mortgage (or remortgage to allow home improvements) allows you to borrow additional funds through a remortgage, with the extra money specifically allocated for home renovations.

By releasing equity from your property, you can finance major upgrades without needing to save up the entire cost upfront.

Here’s how it works:

Remortgaging: This process involves replacing your current mortgage with a new one that includes the additional funds needed for your home improvement project.
Home Upgrades: The extra money borrowed is earmarked for renovations, whether it’s for building an extension, upgrading your kitchen, or making energy-efficient improvements.

Why Choose a Home Improvement Mortgage?

Financing your renovations through a home improvement mortgage can offer several key benefits:

Potentially Lower Interest Rates

Mortgages typically offer lower interest rates compared to other forms of credit like personal loans or credit cards, making it often a more cost-effective way to finance your project short term. Over the long term however, you will likely pay more interest so take professional advice.

Increased Property Value

Well-planned improvements can significantly increase the value of your property, making this investment potentially profitable if you decide to sell in the future.

More Manageable Repayments

By incorporating the renovation costs into your mortgage, you can spread the repayment over the term of the mortgage, rather than needing to pay a large lump sum upfront.

Consider a Secured Loan

Alternatively, if remortgaging isn’t suitable for your circumstances, a secured loan for home improvements can offer a flexible way to fund renovations without changing your existing mortgage rate.

Tailored to Your Needs

Whether you’re planning a small refurbishment or a major extension, a home improvement remortgage gives you the financial flexibility to customise your home to suit your lifestyle.

At Kerr & Watson, we specialise in helping homeowners access the best mortgage deals for their renovation needs. We can help you understand your equity options and advise on the most suitable mortgage products for your project.

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Types of Projects You Can Fund

Home improvement remortgages can be used to fund a wide range of renovation projects, including:

Extensions: Adding an extra bedroom, bathroom, or living space can increase your property’s value and provide much-needed space for your growing family.
Kitchen or Bathroom Upgrades: Modernising key areas of your home can enhance both functionality and aesthetics, making your home more enjoyable to live in and more appealing to potential buyers.
Energy-Efficient Improvements: Installing double glazing, upgrading insulation, or adding solar panels can reduce energy bills and make your home more sustainable.
Garden Landscaping: Transforming your outdoor space can boost your home’s curb appeal and provide additional living space for relaxation and entertaining.

Some lenders may require quotes from builders or contractors for larger projects, but this process is usually straightforward, and we can help guide you through it.

For bigger home improvements such as extensions, the lender may also need to see planning permission, architect drawings and a background of experience. Your mortgage adviser can guide you on this during the process.

Fixed-Rate vs. Variable-Rate Mortgages for Home Improvements

When choosing a home improvement mortgage, you’ll need to decide between a fixed-rate or variable-rate product:

Fixed-Rate Mortgages

With a fixed-rate mortgage, your interest rate remains the same for a set period, offering the security of knowing exactly what your monthly repayments will be. This option is ideal if you want certainty over your financial outgoings while you complete your renovations.

Variable-Rate Mortgages

A variable-rate mortgage fluctuates in line with the lender’s standard rate or The Bank of England base rate, meaning your repayments could go up or down over time. This can be a good option if you expect rates to remain low but are prepared for potential changes in the future.

At Kerr & Watson, we can help you weigh up the pros and cons of each option, ensuring you make the best decision for your home improvement plans and financial situation. You should always take professional advice when making decisions like this.

Benefits of Choosing Kerr & Watson for Your Home Improvement Mortgage

When it comes to financing your home improvements, Kerr & Watson offers a range of benefits:

Expert Advice: Our team of experienced mortgage advisers can help you understand your options and choose the best mortgage product for your renovation needs.
Access to Competitive Deals: We work with a wide range of lenders, ensuring you have access to the most competitive mortgage rates available.
Personalised Service: We take the time to understand your specific needs and guide you through the mortgage application process from start to finish, making it as smooth as possible.

Home Improvement Mortgage Case Studies

We have helped homeowners raise additional funds for a range of home improvements, including through further advances and other mortgage options.

The case studies below show real examples of customers we have helped and demonstrate how factors such as available equity, affordability, existing mortgage arrangements and lender criteria can affect the options available.

Conclusion

For some people, a home improvement mortgage can be a great way to finance your property upgrades, offering the flexibility and affordability you need to turn your house into your dream home.

Whether you’re planning a major renovation or a series of small upgrades, Kerr & Watson is here to help you secure the right mortgage deal and guide you through the process.

Contact Kerr & Watson today for independent mortgage advice.

Written by Daniel Watson, CeMAP, DipMAP
Published: 10 May 2023 | Last updated: 17 September 2026

The information on this page is not tailored to any individual readers and should not be considered financial advice under any circumstances.

If you are seeking advice about a mortgage, you should speak with a qualified advisor.

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 14 April 2026
 
 
  The team at Kerr & Watson were brilliant end to end. Daniel explained everything clearly, was always available to answer questions and helped us secure a great mortgage rate. The mortgage broking service they offer is worth every penny and I'd not hesitate to use them again. Thank you!
  
 
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Home Improvement

Frequently Asked Questions

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Is it better to use a mortgage broker or go directly to a bank?

Using a mortgage broker gives you access to multiple lenders rather than just one bank’s products. An independent, whole-of-market mortgage broker can compare options across high street and specialist lenders, helping you apply for the most suitable mortgage first time.

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What does a mortgage broker do?

A mortgage broker assesses your income, outgoings, credit history and deposit to recommend the most suitable mortgage for your circumstances. They compare lenders across the market, submit your application, liaise with underwriters and work alongside your conveyancer until your purchase or remortgage completes.

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Can a mortgage broker access better deals?

An independent mortgage broker can compare products across a wide range of lenders, including some intermediary-only deals. While rates are set by lenders, a broker helps ensure you apply for the most suitable and competitive option available.

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What does whole-of-market mean?

Whole-of-market means a mortgage broker can access products from a broad range of lenders rather than being restricted to one bank or a limited panel. This gives you more flexibility and potentially better-suited mortgage options.

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How much does a mortgage broker cost?

Mortgage adviser fees vary depending on the complexity of your case. Some advisers charge a flat fee, while others are paid via lender commission. At Kerr & Watson, our fees are explained clearly upfront so you understand exactly what you’re paying and why.

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How much can I borrow for a mortgage?

Most lenders offer between 4 and 4.5 times your annual income, subject to affordability checks. The exact amount depends on your income, monthly commitments, credit history and deposit size. A mortgage broker can provide a personalised estimate based on your full financial situation.

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How quickly can I get an Agreement in Principle?

An Agreement in Principle can often be arranged within 24 hours once your key financial details have been reviewed. This provides an indication of how much you may be able to borrow and can strengthen your position when making an offer on a property.

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How long does it take to get a mortgage offer?

A mortgage offer is typically issued within two to six weeks after submitting a full application. Timescales vary depending on the lender, valuation process and complexity of your case. Providing accurate documents from the outset can help speed up the process.

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What documents do I need to apply for a mortgage?

Most lenders require proof of identity, proof of address, recent payslips or tax calculations, bank statements and details of your deposit. Self-employed applicants may also need accounts or SA302s. Your mortgage adviser will confirm exactly what is required before applying.

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Do I need a deposit to get a mortgage?

Yes, most mortgages require a minimum deposit of 5% of the property value. A larger deposit can improve the range of lenders available to you and may secure a more competitive interest rate.

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Can I get a mortgage if I’m self-employed?

Yes, many lenders offer mortgages to self-employed applicants. You will usually need at least one to two years of accounts or tax returns. A specialist mortgage broker can help match you with lenders who understand variable or complex income structures.

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Can I get a mortgage with bad credit?

It may still be possible to get a mortgage with adverse credit, depending on the severity and how recent the issues were. Specialist lenders consider applicants who may have been declined elsewhere. An independent mortgage broker can review your options carefully before applying.

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What happens if I’ve been declined for a mortgage?

A mortgage decline does not necessarily mean you cannot secure a mortgage. Different lenders have different criteria. A mortgage broker can identify why you were declined and approach lenders whose criteria better fit your situation.

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Can I arrange my mortgage remotely?

Yes. Our mortgage advice process can be completed remotely via telephone, email and video call, allowing us to support our customers wherever you are located.

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Do I need a mortgage broker if I’ve already found a property?

No. You do not have to use a mortgage broker simply because you have found a property. However, a broker can still compare suitable lenders, check criteria, arrange an Agreement in Principle or mortgage application and help manage the process through to completion.