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What is a home improvements mortgage?

Are you looking to upgrade your home to make it work better for you? Then you may be wondering how you can finance this. One of your options is a home improvement mortgage, and in this guide we take a look at what this means in more detail.

Please note: This article only sets out some options available to you and we recommend you contact a financial advisor to help choose the correct financial product/option for you.*

What is a home improvements mortgage?

A home improvements mortgage is where you borrow extra funds to improve your home and this new debt is added to your current mortgage. This means your monthly payments will increase, but it avoids the initial hit of renovation costs.

Can I add a home improvement loan on my mortgage?

If you want to renovate your home but simply don’t have the funds, you can add a home improvement loan to your mortgage. You’re basically borrowing the money against the value of your home.

What’s more, instead of taking a personal loan, you’re adding to the total amount of your mortgage. As such, you’ll only need to make a single payment each month, but it will be higher than your original mortgage repayment costs.

home improvement help

Is it worth borrowing on my mortgage for home improvements?

One of the best ways to finance renovations is to borrow from your mortgage provider for home improvements. But the real question is, is it worth it?

Well, if you’re unhappy with the appearance or layout of your property, making changes and alterations can be a brilliant way of falling in love with your home. Of course, this comes at a cost. How much work would you need to do to your house to truly make it home? Complete room renovations? New flooring? New decor? New bathrooms? Room conversions? Whatever it is, it costs money.

Borrowing money for home improvements on your mortgage could mean a lower interest rate than taking out a personal loan. Many people prefer to have a single monthly payment to avoid confusion and complications.

However, while borrowing money for home improvements may seem like a great idea, it’s worth noting that if you fail to make payments, your home could be at risk.

If on the other hand, you have the money for renovations sitting in your bank account then, of course, you will unlikely need a loan of any sort.

Your options are limitless, and you need to do what’s right for you and what you feel most comfortable with.

Is getting a home improvement loan difficult if you have bad credit?

Wondering if getting a home improvement loan is difficult if you have bad credit? Actually, although it may take a little longer, there’ll be lenders willing to loan you the funds for your home improvements. Having said that, they may want to use your home as collateral.

Having bad credit can be very frustrating when it comes to additional borrowing. Whatever the reasons your credit score isn’t great, this can put some lenders off when it comes to getting a loan.

It’s always worth considering if you can afford the repayments of your home improvement loan as getting further into debt with no way out can lead to you losing your home.

finance for home improvements

Types of finance for home improvements

Getting a home improvement mortgage isn’t the only way to fund your renovations. In fact, you have a few different options. Before deciding to take out a loan against your mortgage, consider the following types of finance for home improvements:

  • Savings: If you can wait for your home improvements, taking some time to save the money you need means you won’t need to pay interest, saving you money in the long run
  • Unsecured loan: These loans don’t use your home or assets as collateral, meaning if you don’t make payments, they can’t repossess your home
  • Credit card: If you have a card with available funds, using that to pay for your renovations could be a great idea. Of course, you’ll be limited in the amount you can borrow but the funds will be immediately available. Please note, credit cards can have high-interest rates so check this before borrowing

Where can I find a loan calculator for home improvement?

If you’re interested in getting a loan to pay for your renovations, it may be useful to use an online tool so you can see how much you can borrow and how much your repayments will be.

There are lots of different loan calculators for home improvements online that could help with your decision.

Where can I get home improvement help?

Renovating or extending your home can completely transform your living space from ordinary to extraordinary. These exciting changes of course come at a cost and unless you plan to do all the work yourself, you’ll need the assistance of a range of professionals. From builders to electricians and architects, it’s so important to hire experts you can trust.

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How much does an extension or conversion cost to be installed by a professional?

If you want to completely redesign your home, conversions and extensions are both great options. You can increase the size of your home and make use of wasted space in areas like your loft or basement.

To help you decide how to extend or convert parts of your home as well as average costs and important considerations, check out the below guides:

Another way to free up funds for your renovations is to remortgage your home. Take a look at our remortgaging to pay for home improvements guide for more information.

Which tradespeople should you use for your home renovations?

If you’re planning to completely renovate your home you may need the help of plumbers, electricians, builders, decorators, contractors…. the list goes on.

The trade you hire will depend on the work you’re having done.

See the tradespeople we've checked and recommend for your job

*This is information – not financial advice or recommendation. The content and materials featured or linked to on this blog are for your information and education only and are not intended to address your particular personal requirements. The information does not constitute financial advice or recommendation and should not be considered as such. The Checkatrade website is not regulated by the Financial Conduct Authority (FCA), its authors are not financial advisors, and it is therefore not authorised to offer financial advice.
Always do your own research and seek independent financial advice when required. Any arrangement made between you and any third party named or linked to from the site is at your sole risk and responsibility. Checkatrade blog and its associated writers assume no liability for your actions.

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